20 Oct 2004 (Regina SK) – SGI has withdrawn its application to the Saskatchewan Rate Review Panel requesting approval of a 10 per cent rate increase for Jan. 1st, 2005. The decision is based on new financial information provided by SGI’s external Actuary that forecasts an improved financial position for the Auto Fund.
“Not only does it mean a fifth straight year without a general increase in auto rates in Saskatchewan, SGI also has the financial ability to continue with our plan to more than double the discounts provided under Safe Driver Recognition and Business Recognition programs,” SGI President Jon Schubert said. “The increase to safe driver discounts will take effect Jan. 1st, 2005.”
SGI put forward the rate proposal in July 2004 based on external actuarial estimates of claims costs that forecast a small profit for 2004 and a $14 million loss in 2005, leaving the Auto Fund with essentially no balance in the Rate Stabilization Reserve. The new external actuarial estimate, combined with increased investment earnings and lower than average summer storm damage claims, has put the Auto Fund in a more positive financial position. Near break even is expected in 2005, leaving the Auto Fund with a healthy balance in the Rate Stabilization Reserve of over $120 million. As a result, a rate increase is not necessary at this time.
“SGI went forward with the rate proposal with the best possible financial information we had from our external Actuary at the time,” Schubert said. “Just as we are withdrawing the proposal today with the best possible financial information we have now.”
“We’re more than doubling the discounts provided under Safe Driver Recognition to a maximum of 20 per cent and Business Recognition to 10 per cent because it’s what customers tell us they want – bigger rewards for safe drivers. We can afford to provide increased discounts to safe drivers, so we’re doing it,” Schubert said.