SGI investigating groundbreaking rating technology for motorcycles

June 6, 2013 – SGI is taking steps to become one of the first insurance companies in the world to use telematics technology for motorcycles.

Often called usage-based insurance, some insurers have started using telematics devices in vehicles to record driving information, such as speed, braking, mileage and driving location in order to determine the risk of a claim associated with a vehicle. SGI today issued an Advance Contract Award Notice (ACAN) through SaskTenders, seeking a vendor to supply telematics technology for motorcycles for a planned pilot program. The Motorcycle Review Committee, a group of key stakeholders formed by SGI to help address rating issues affecting motorcycles, was unanimously in favour of the pilot program.

“This is a truly innovative approach to addressing the issues that have been raised by motorcycle owners regarding their insurance rates and traffic safety,” said Minister Responsible for SGI Donna Harpauer. “Usage-based insurance is the ultimate in rating fairness because it essentially lets the driver control their own insurance rate through their driving behaviour. Simply put, those who drive responsibly pay less and those who don’t pay more. This pilot is an exciting first step to seeing if this could be an effective approach here in Saskatchewan.”

With the help of the Motorcycle Review Committee, SGI will be looking for several hundred Saskatchewan riders to volunteer to have a telematics device installed on their bike. No rates would be impacted during the pilot, as the purpose is information gathering only. It’s possible the pilot could begin this riding season, pending availability of volunteers, devices and installation.

“We’re eager to get the pilot program underway so we can really investigate this technology and get feedback from the volunteers about what the user experience is like,” said SGI President and CEO Andrew Cartmell. “The program we’re planning to pilot would give riders weekly updates on their driving behaviour, to show them what information an insurer would be looking at. But even more importantly, we anticipate a positive impact on traffic safety as riders are more aware of their driving behaviour, which hopefully will mean fewer collisions, and associated injuries and fatalities.”

SGI will provide information on how riders can volunteer as soon as details of the pilot are finalized.

This pilot is the first outcome of SGI’s work with the Motorcycle Review Committee. SGI and the committee also discussed a number of other ways to address concerns regarding traffic safety programs, rating structure and injury benefit levels. A discussion document is currently being finalized and will be released to the public in mid-June for their feedback.

About SGI

Saskatchewan Government Insurance (SGI) is the province’s self-sustaining auto insurance fund. SGI operates 21 claims centres and five salvage centres across Saskatchewan with a head office in Regina. SGI also works with a network of over 400 motor licence issuers across the province. Customers can now do some transactions online. Visit for more information.

Source: SGI