REGINA — The Saskatchewan Rate Review Panel has recommended going ahead with this year’s auto rate hike, but put cold water on plans for a similar increase next year.
In a decision released Friday, the panel recommended the provincial government confirm the Saskatchewan Auto Fund’s interim overall rate increase of 3.75 per cent that took effect June 1, 2026.
But the panel said it is not recommending approval at this time of the second proposed 3.75 per cent increase due to take effect on June 1, 2027.
Instead, the Panel is recommending that Saskatchewan Auto Fund “submit a new application for 2027-28, supported by complete public evidence including a financial forecast, capital adequacy analysis, consultation outcomes, non-rate actions, and a capital restoration plan," according to their news release issued Friday.
Their news release stated that they also made other recommendations, including that the Auto Fund adopt a capital margin of at least 6.5 per cent effective immediately, present a multi-year capital restoration plan to restore the reserve to the 125 per cent MCT policy target, adopt a variable rate cap with a maximum cap of 15 per cent for classes with higher indicated rate requirements, and demonstrate in future applications whether projected savings and efficiencies from their Corporate Transformation project had been realized, among others.
In a news release, the Rate Review Panel said that after reviewing the application from the Saskatchewan Auto Fund, as well as public input, updated financial information and the report of its independent technical consultants, they concluded that a rate increase is “necessary, justifiable and step in the right direction for 2026-27.”
They said they found Auto Fund costs have “increased significantly due to higher damage claim costs, inflation, more complex vehicle repairs, rising vehicle values, weather-related losses and increased operating expenses. At the same time, premium revenue has not kept pace with projected claims costs and expenses.”
The panel also said they found the Auto Fund financial position has “weakened materially since the last full rate application in 2021.”
They noted the Rate Stabilization Reserve had “significantly eroded as a result of premium revenue not keeping pace with claims costs and expenses.”
In their news release the panel added that they recognize "that affordability is a significant concern for Saskatchewan ratepayers. However, it must also consider the long-term financial stability of SAF and the need to ensure that rates are fair, reasonable and sufficient over time. The panel’s recommendations are intended to balance immediate customer impacts with the need to protect ratepayers from larger and more abrupt increases in the future."
In a statement Friday afternoon, Minister responsible for Saskatchewan Government Insurance Jeremy Harrison said the following:
“The panel confirmed that financial pressures on the Auto Fund are real and require attention, but it also highlighted the importance of affordability. We will take the time to review the report and ensure any future decisions strike the right balance between protecting ratepayers and maintaining a strong, sustainable Auto Fund.”
SGI critic Darcy Warrington issued a statement Friday afternoon in support of the recommendation against the increase for 2027.
“I am glad that the Rate Review Panel is recommending against the second rate increase. It is a much-needed break for consumers who are struggling with the cost-of-living crisis that Scott Moe and Jeremy Harrison have created,” Warrington said.
“This ruling reflects in part what Carla Beck’s team has been saying from the beginning — that the Sask. Party doesn't care about the affordability of Saskatchewan drivers.”
Warrington also accused Harrison of having “completely mismanaged” SGI, and called for Harrison to “commit publicly today to following the recommendations of the panel and not imposing the second SGI rate hike.”
“Until he stops hiding and faces the media and makes this commitment, Saskatchewan drivers have every reason to suspect that Harrison and Moe will try and hike the rates again under the cover of darkness.”
