By Derek Lothian, President & CEO, IBAS

The Insurance Brokers Association of Saskatchewan (IBAS) applauds today’s decision by the Government of Saskatchewan to approve SGI’s proposed Auto Fund rate increase of 3.75%, effective June 1, 2027.

IBAS, however, remains alarmed by the Auto Fund’s deteriorating financial position and is concerned that the change falls short of the measures required to protect the program and prevent the Rate Stabilization Reserve from being fully depleted within the next 2 – 3 years.

IBAS is now encouraging SGI and the Province to aggressively explore the suitability and potential impact of additional non-rate measures, including:

• Further increasing the minimum deductible beyond the $950 threshold previously announced;
• Removing road hazard glass and other coverages where claims costs have consistently exceeded premiums collected;
• Generating interest from the financing of deductibles;
• Evaluating the fee structure applicable to commercial transport carriers to ensure the industry covers the cost of its own regulatory oversight, loss experience, and safety programming; and
• Separating physical damage from the compulsory insurance product — either on all vehicles or on some targeted classes, such as recreational trailers.

IBAS also supports the Saskatchewan Rate Review Panel's recommendation that SGI adhere to its Capital Management Policy and adjust the capital margin from 0.06% to at least 6.5%.

While IBAS recognizes the considerable affordability challenges facing Saskatchewan consumers, the misalignment between Auto Fund rate and claims costs is unsustainable without direct subsidization. It is impossible for this gap — SGI’s own indicated rate need was more than 33% at the time of the original proposal — to be bridged through operational efficiency and administrative expense reduction alone.

IBAS will continue to voice the urgency of course correction with policymakers and work with all stakeholders to ensure the Auto Fund endures as the most admired model for reliable, accessible auto insurance in Canada.