Government Responds to Rate Review Panel Recommendations

CANADA, September 4 - Released on September 4, 2026

SGI will be moving forward with a 3.75 per cent overall Auto Fund rate increase, with rate rebalancing, effective June 1, 2027, following the recommendations of the Saskatchewan Rate Review Panel (SRRP). Government has also formally approved the 3.75 per cent increase for 2026, confirming the increase that took effect on June 1, 2026. The Auto Fund remains under significant pressure with record claims again this summer.

The panel's report acknowledged the significant financial challenges facing the Saskatchewan Auto Fund, including rising claims costs and inflation, and recognized the need for action to support the long-term sustainability of the Auto Fund. 

While the panel recommended an immediate 6.5 per cent capital margin increase, the government directed SGI to proceed with the lower rate increase originally proposed for June 1, 2027. This approach balances affordability concerns with the Auto Fund's financial needs. 

Unlike a capital margin increase, which applies equally across all vehicle classes, SGI's rate-setting approach aligns rates with the anticipated claim costs of each vehicle class. 

"The panel's recommendations recognize that claim costs and inflation are putting significant financial pressure on the Rate Stabilization Reserve and overall Auto Fund sustainability," Minister Responsible for SGI Jeremy Harrison said. "Our government’s response balances those financial realities with our commitment to affordability for Saskatchewan drivers.” 

The average annual increase for Saskatchewan vehicle owners in 2027 is expected to be about $39.00. Auto Fund rates are based on anticipated claim costs for each make, model and year of vehicle. Rate rebalancing will continue to ensure rates better reflect the claim costs associated with different vehicle types. Following the 2027 rate increase, Saskatchewan will still have among the lowest basic auto insurance rates in Canada.

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