This has been a difficult year for so many Saskatchewan families. But even before the pandemic, people were feeling stretched and stressed and finding it harder to make ends meet.
Fortunately, we have the fiscal capacity right now to make life a bit more affordable. #skpoli
That's why today we’re committing that an NDP government will reduce auto insurance premiums in the province by 7% and provide every policyholder a $100 rebate. This is money that’s more useful in people’s pockets than it is sitting in a over-full reserve fund.
According to SGI’s latest financial reporting, the Crown is sitting on a significant surplus of funds beyond what’s needed to ensure rate stability and consistency. Now is the right time to ease the insurance burden on the people of Saskatchewan.
sgi.sk.ca/news?title=202…
SGI's Rate Stabilization Reserve (RSR), designed to act as a buffer to prevent large premiums hikes, has grown nearly five-fold, from $218 million in 2014 to more than $1 billion this year. It is now $117 million above SGI’s target, while SGI premiums have not changed.
When SGI last went before the Sask Rate Review Panel in 2014, it set a financial target for the RSR based on an industry-standard formula. By 2018, the RSR had far exceeded the target amount, but instead of stabilizing the fund and reducing premiums, SGI increased the target.
SGI is supposed to operate on a break-even basis. This massive cash reserve build-up begs the question: Is the Sask. Party setting up SGI to be a more attractive asset to sell off?
@PremierScottMoe needs to come clean: is he sitting on Saskatchewan people’s money so he can sell off this lucrative Crown to his wealthy friends? #SaveOurCrowns #skpoli
Only an NDP government will ensure the SGI surplus is returned to the rate-payers, and that this Crown remains under public ownership. It’s time to put people first.
If the NDP forms government, we will:
✅ Provide a $100 rebate
✅ Reduce auto insurance rates by 7% or $85/year
✅ Have SGI work with the Rate Review Panel to review the RSR and ensure fairness for families
✅ Ensure that SGI remains a public insurance company & is NOT sold off.
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