Province touts ‘strong year’ for SGI while Sask. NDP calls for lower insurance rates | Globalnews.ca

SGI Minister Don Morgan says Saskatchewan Auto Fund and SGI Canada are in good financial shape despite weathering storms figuratively and literally in a year marked by the pandemic, inflation and the costliest storm in Canadian history. Saskatchewan.

“Every year there are claims, losses and surprises,” Morgan said Tuesday at a news conference following the release of the crown’s 2021-2022 annual report.

“But this was a good year in terms of the number and type of claims received, but more importantly, it was a really strong year for investment market returns. Whether that will continue remains to be seen.”

But despite new calls for a reduction in vehicle insurance rates from the Saskatchewan NDP, Morgan said no such plans currently exist.

“It is an ongoing process. We looked to SGI for advice on what the anticipated amount of pending claims is and what the projected returns on investments are. There is certainly nothing there now that indicates that should be the case,” he said.

While the Auto Fund’s investment earnings of $108.7 million helped position the province to provide an $89.3 million rebate program for registered vehicle owners, the Rate Stabilization Reserve (RSR) decreased $39.8 million to $1.1 billion.

Still, the RSR remains “financially strong” according to the province.

The minimum capital test (MCT) score, a measure that monitors the adequacy of the RSR, was 149% as of March 31. His 12-month rolling average MCT score of 176% was above the 2021-22 goal of 174%.

Meanwhile, Auto Fund’s gross written premiums totaled just over $1 billion, a 1.9 percent year-over-year increase that the province says is due to more vehicles on the roads after an initial pandemic slowdown in 2020. .

$926.3 million was incurred in total automobile claims.

The hail storm of August 31, 2021 alone resulted in approximately $65 million in auto claims, although about $40 million was ceded to reinsurers. Overall, incurred catastrophe claims were still 29.9% higher than in 2020-21.

SGI Canada reported net income of $81.8 million, $52.1 million in subscription earnings, $32.3 million in investment earnings and paid $57.5 million in dividends to Crown Investments Corporation.

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The August 2021 storm resulted in approximately $40 million in estimated damages for SGI Canada clients, although the storm’s impact on corona was again mitigated by its reinsurance program. Total storm claims incurred were $54.3 million.

The SGI Canada report noted that the province is “preparing for more challenging claims in the coming years as climate change impacts extreme weather events across the country.”

The Saskatchewan opposition was quick to respond Tuesday morning, noting that SGI’s long-term MCT target is 140 percent.

“The Auto Fund is still almost 10 percent above where it should be at the end of the year,” said SGI critic Aleana Young.

“Instead of handing out $1 million checks to a company outside of the province of Ontario every time a refund needs to be issued, what we’re asking for is an across-the-board rate reduction. Even if the government says it won’t make much of a difference, it will allow people to plan and Saskatchewan will continue to have the lowest rates in Canada.”

Young said that while playing outdoors, he constantly hears residents’ concerns about the cost of living “regardless of household income level.”

“Saskatchewan is facing a generational affordability crisis. From today’s annual report from SGI, what we see is an incredibly profitable and well-run crown corporation,” said Young.

“But what we don’t see are real solutions to help Saskatchewan families address the crushing cost of living and affordability crisis we all know we’re in.”

According to SGI, the latest round of rebate checks, which were announced in March and began arriving in mailboxes in May, cost about $700,000 to print, process and deliver.

Raising or lowering insurance rates involves SGI submitting a proposal to the Saskatchewan Rate Review Panel, which then seeks public input before sending recommendations to cabinet. SGI’s most recent proposal was submitted on June 1, 2021, and the new rates went into effect on April 1, 2022.

As for additional rebates for SGI customers, Morgan said that’s a “possibility” to consider “at a later date.”

“We are in a period of some pretty significant instability and volatility in the market and we would like to maintain healthy reserves to ensure that we can maintain the current rates that are being charged and maintain the benefits that we provide to customers. ,” he said.

The annual report also noted $160.9 million in rebates for SGI Auto Fund customers through the Safe Driver Recognition (SDR) and Business Recognition programs, and $2.6 million in grants to 210 Saskatchewan community projects for road improvements. traffic safety through the Provincial Traffic Safety Fund Grant program.

Crown’s annual reports will continue to be published this week.

Reports for SaskPower, SaskEnergy, SaskTel and Crown Investments Corporation have not yet been released.