The Saskatchewan Rate Review Panel released their recommendations on the province’s auto fund rate application, advising the government not to confirm the overall rate increase for 2027. According to its recommendations released on Friday, the panel recommended the provincial government confirm the auto fund’s interim overall rate increase of 3.75 per cent which took effect June 1, 2026. The Saskatchewan Auto Fund (SAF) had applied for a two-year rate program with overall increases of 3.75 per cent effective June 1, 2026 and June 1, 2027, with the first increase implemented on an interim basis while the review was completed. It amounts to an average annual increase of about $38 in the first year, or about $3 per month. Following public input, financial information, and the report of technical consultants, the panel said the rate increase is necessary and a step in the right direction for 2026-27. However, the panel is not recommending the approval of the proposed 2027-28 increase right now, as it advises the SAF to submit a new application for the year, supported by a financial forecast, capital adequacy analysis, consultation outcomes, non-rate actions, and a capital restoration plan. The panel also noted the SAF’s financial position has weakened since the last full rate application in 2021, as the rate stabilization reserve (RSR) has “significantly eroded as a result of premium revenue not keeping pace with claims costs and expenses.” The panel said they recognize that affordability is a concern for residents but also must consider the long-term financial stability of the SAF. “The Panel’s recommendations are intended to balance immediate customer impacts with the need to protect ratepayers from larger and more abrupt increases in the future,” the panel said. In a statement, Minister Responsible for SGI Jeremy Harrison acknowledged the financial pressures on the auto fund, while also highlighting the importance of affordability. “We will take the time to review the report and ensure any future decisions strike the right balance between protecting ratepayers and maintaining a strong, sustainable Auto Fund,” his statement read. A statement from NDP MLA Darcy Warrington said he is glad the panel is recommending against the second rate increase. “It is a much-needed break for consumers who are struggling with the cost-of-living crisis,” the statement read. “We are demanding that Jeremy Harrison commit publicly today to following the recommendations of the panel and not imposing the second SGI rate hike.” Other recommendations made by the panel include the SAF adopting a capital margin of at least 6.5 per cent, presenting a multi-year capital restoration plan to restore the RSR to the 125 per cent, reviewing the safe driver recognition program to determine it remains fair, among others.
