SGI withdraws rate increase request

Saskatchewan Government Insurance has withdrawn its request to raise auto rates 10% next year for the province’s drivers.SGI says the decision comes after an external actuary’s audit predicting its “auto fund” will be in an improved position heading into next year. The government auto insurer says it will also continue with its planned “safe driver discount” program set to take effect January 1.”Not only does it mean a fifth straight year without a general increase in auto rates in Saskatchewan, SGI also has the financial ability to continue with our plan to more than double the discounts provided under Safe Driver Recognition and Business Recognition programs,” says new SGI President Jon Schubert.SGI had asked for the rate increase back in July based on actuarial reports predicting a small profit for 2004, followed by a $14 million loss for 2005, and essentially wiping out the auto fund’s rate stabilization reserve.The more recent forecast combined with higher investment earnings and low summer losses means the government insurer now expects to be about break even in 2005. SGI now expects to end 2005 with over $120 million in its reserve.