The NDP is requesting Saskatchewan Government Insurance (SGI) to lower its insurance rates, but the Crown insurer insists that it has to prepare for when the insurance market turns sour.
The issue comes after the provincial government of Saskatchewan rejected a proposal to lower SGI’s auto insurance, after the Crown corporation’s most recent annual report showed that its finances and reserves were healthy – especially after generating $1.0 billion in gross premium written for 2021-22.
SGI’s Rate Stabilization Reserve lost $38.9 million during the 2021-22 period but still retains $1.1 billion.
“We’re over $7,300 less per year than Ontario, we’re less than half of what Alberta pays on average and we have the most comprehensive benefits,” said Minister Responsible for SGI Don Morgan. “So, our intention at this point in time is not to look at [reducing rates].”
Morgan had explained that the province wants SGI to maintain its reserve fund in the event of a surge of high insurance claims, but NDP critic Aleana Young has said that the insurer can afford to lower rates.
“That’s great [that rates are the lowest in Canada], but that’s not a reason for them not to be lower when they have done absolutely nothing to move on affordability,” Young told reporters.
To this, Morgan reasoned that SGI had already provided $100 in rebate cheques. Although the minister did not completely shoot down the possibility of more rebates in the future, he also said that the markets are currently experiencing “fairly significant instability and volatility,” Regina Leader-Post reported.
Read more: SGI sends first batch of rebate cheques
“We would like to maintain healthy reserves just to make sure that we’re able to maintain the current rates that are being charged and maintain the benefits that we’re giving to customers.”
