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The Saskatchewan Rate Review Panel has recommended that the provincial government confirm the Saskatchewan Auto Fund’s (SAF) interim overall rate increase of 3.75 per cent, which took effect June 1, 2026. The Panel is not recommending approval of the second proposed 3.75 per cent increase for June 1, 2027, at this time.

SAF, which is administered by SGI, applied for a two-year rate program with overall increases of 3.75 per cent effective June 1, 2026, and June 1, 2027. The first increase was implemented on an interim basis while the Panel completed its review. The proposal would result in an average annual increase of approximately $38 in the first year, or about $3 per month, although individual customer impacts will vary depending on vehicle class and rating factors.

After reviewing the application, public input, updated financial information and the report of its independent technical consultants, the Panel concluded that a rate increase is necessary, justifiable, and step in the right direction for 2026-27. The Panel found that SAF’s costs have increased significantly due to higher damage claim costs, inflation, more complex vehicle repairs, rising vehicle values, weather-related losses and increased operating expenses. At the same time, premium revenue has not kept pace with projected claims costs and expenses.

The Panel also determined that SAF’s financial position has weakened materially since the last full rate application in 2021. The Rate Stabilization Reserve (RSR), which is intended to protect customers from rate shock during periods of volatility, has significantly eroded as a result of premium revenue not keeping pace with claims costs and expenses. SAF’s Minimum Capital Test (MCT) is also forecast to fall below both its approved policy target and its internal minimum without corrective action.

While the Panel recommends confirming the 2026-27 increase, it is not recommending approval of the proposed 2027-28 increase at this time. The Panel is recommending that SAF submit a new application for 2027-28, supported by complete public evidence including a financial forecast, capital adequacy analysis, consultation outcomes, non-rate actions, and a capital restoration plan.

The Panel also made several other recommendations, including that SAF:

• adopt a capital margin of at least 6.5 per cent effective immediately and commit to reaching the full current forecasted 9.2 per cent;
• present a multi-year capital restoration plan to restore the RSR to the 125 per cent MCT policy target;
• adopt a variable rate cap with a maximum cap of 15 per cent for classes with higher indicated rate requirements;
• demonstrate in future applications whether projected savings and efficiencies from its Corporate Transformation project have been realized;
• use current economic assumptions in future applications and provide updates during the review process when key assumptions change materially;
• provide an annual rate and financial adequacy review to the Panel, whether or not it is seeking a rate change;
• undertake an external independent review of the Integrated Cost Allocation Methodology and report the results in its next rate application;
• review the Safe Driver Recognition program, including its discounts and surcharges, to determine whether the program remains fair, appropriate, statistically supported and actuarially sound;
• and ensure interim rate adjustments are used only in exceptional circumstances and are supported by clear public evidence demonstrating urgency, customer impact, and why the rate change cannot wait for completion of the review.

The Panel recognizes that affordability is a significant concern for Saskatchewan ratepayers. However, it must also consider the long-term financial stability of SAF and the need to ensure that rates are fair, reasonable and sufficient over time. 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 mandate of the Panel is to review rate applications and provide an opinion on the fairness and reasonableness of the requested rate adjustments, considering the interests of the customer, the Crown corporation and the public. The Panel believes its recommendations represent a fair balance of those interests. The recommendations will be reviewed by the government, and a final decision on implementation will be made by Cabinet.