Saskatoon, Saskatchewan – A New Democratic Party (NDP) critic has called out Saskatchewan Government Insurance (SGI) for failing to reduce insurance rates, despite a healthy financial year.
After “a record-setting catastrophic storm and issues arising from the COVID-19 pandemic,” a recent press release said that SGI remains financially stable. This comes after the provincial legislature reviewed the SGI’s Auto Fund’s annual reports, where it made $108.7 million in investment earnings, and maintained $1.1 billion in the financial reserve.
However, SGI rejected the idea of lowering insurance rates, citing significant market volatility and instability and the need to prepare for a possible surge in insurance claims.
“SGI is in a position to continue to issue rebate checks time and time again which is great to see, but the Auto Fund is nearly 10 percent over where it should be as of year-end…we are calling for an overall lowering of rates.” said NDP critic Aleana Young.
“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].
Customers of Saskatchewan’s compulsory auto insurance plan can look forward to a $100 rebate per vehicle registered, as long as these vehicles are not trailers or snowmobiles.