By Carol Baldwin
Local Journalism Initiative Reporter
Wakaw Recorder
The Saskatchewan Rate Review Panel is set to evaluate a rate application from SGI for a two-year rate program. This program proposes net increases of 3.75 percent in each year, which includes rebalancing, for Saskatchewan Auto Fund rates. The changes are scheduled to take effect on June 1, 2026, and June 1, 2027, resulting in a combined impact of 7.6 percent. The increase planned for June 2026 will be implemented on an interim basis, but it will still undergo the public rate review process.
The proposed rate increase is primarily due to rising damage claim costs, inflation, and higher overall expenses, the application states.
Both repair costs and vehicle values are expected to continue to climb throughout the proposed rating period. This increase is largely attributed to the growing complexity of technology, materials, and repair procedures in newer vehicles. These costs have been further impacted by inflation in recent years and are incorporated into the analysis. Additionally, contracted autobody repair labour rates saw 3 percent increases on April 1 in 2023, 2024, and 2025, which also affects damage costs.
While the escalating claims expenses are the main driver of the proposed rate increase, salary, program, and loss adjusting expenses have also contributed to higher overall costs.
The Saskatchewan Auto Fund, managed by SGI, offers basic, universal insurance coverage to residents of Saskatchewan. It operates on a self-sustaining basis, aiming to maintain an adequate balance in the Rate Stabilization Reserve (RSR) to cover future claims and protect customers from sharp rate increases during years when claim costs exceed average levels. Importantly, the Auto Fund neither receives funding from nor pays dividends to the Government of Saskatchewan.
In addition to insurance coverage, the Auto Fund provides various services to ensure that drivers and vehicles are properly licensed. This includes licensing approximately 800,000 drivers, registering over one million vehicles, conducting driver examinations, and implementing driver and vehicle safety programs. It also carries out safety audits for carriers transporting goods or passengers through around 350 independent motor licence issuer offices throughout Saskatchewan. Furthermore, the Auto Fund invests in traffic safety initiatives to reduce the human, social, and economic costs associated with vehicle collisions.
The coverage provided by the Auto Fund is legislated in the Automobile Accident Insurance Act (AAIA). The coverage is divided into three categories: personal injury, third-party liability, and physical damage.
In determining premium rates for the Auto Fund, there are three components to consider: adequate premium rates to break even, fairness in rating, and maintaining adequate capital.