The BR program rewards businesses that have good claims history with discounts up to 10% on their basic vehicle insurance.
Based on your business' claims history with SGI, you'll either:
- be eligible for a discount on your basic vehicle insurance
- be subject to a surcharge on your basic vehicle insurance
- pay the base insurance premium with no discount or surcharge
Businesses that have claims for which they were held responsible are subject to lower discounts or a surcharge on their basic vehicle insurance.
Traffic convictions are not considered when determining a business' assessment. Traffic convictions are attributed to the driver and may impact the driver's safety rating under the Safe Driver Recognition program. Only at-fault collisions will affect your assessment.
BR program changes
In an effort to ensure our programs continue to be effective for our customers, SGI conducted a review of the BR program. Based on the analysis and feedback we received, the following changes will be made:
Changes effective May 1, 2015
- We’re leveling the playing field between individuals and companies in the BR program. Individuals will begin to receive BR surcharges if they have had claims in the last 5 years resulting in a loss ratio greater than 80%.
- To improve motorcycle safety in the province, only owners that have the necessary driver licence endorsements and training are now eligible for a discount on their motorcycle in the Safe Driver Recognition (SDR) program. To align with this change, motorcycles will no longer be included in the BR program. The exceptions to this are dealer-plated and police-use motorcycles. These motorcycles will still be eligible for BR surcharges as well.
- Police-use motorcycles will still be included because police officers are provided specialized training.
- Dealer-plated motorcycles are still included because they are registered in a different class (Class L) than private passenger motorcycles and are required as part of a dealer’s business operation.
Changes effective May 1, 2016
Current and May 1, 2016 scale comparison:
New BR scale highlights:
- To make the scale more balanced the maximum surcharge will be reduced from 200% to 25%.
- All customers will be eligible to receive the maximum discount since you no longer need to be claims free (0% loss ratio). Being claims free is almost impossible for large fleets to achieve.
- The program will be fairer, as there will no longer be such a disparity between the maximum discount and surcharge.
Loss ratio calculation changes:
- SGI uses a loss ratio calculation to calculate your BR assessment. It divides the amount SGI has paid in claims for at-fault collisions in the last 5 years by the amount of premium you’ve paid over those same 5 years. SGI currently caps each claim at no more than twice the premium paid for the year the loss occurred.
- SGI is changing the claims cap to the lower of 3x the business’s premium or $50,000. This change will continue to benefit customers with a small premium base, but with the addition of the $50,000 cap, will also benefit larger businesses.
- The $50,000 cap will be indexed with the rate of inflation and will grow over time as claims costs increase.
Pro-rated discounts or surcharges:
- We’ll pro-rate the customer’s BR discount or surcharge based on the number of years you have vehicles registered in the 5-year assessment period. Only businesses that have vehicles registered for the full 5-year assessment period will be eligible to receive the full BR discount or surcharge. This change makes you earn your maximum discount over time plus protects you from the maximum surcharge if you have only 1 or 2 bad years.
Changes for International Registration Plan (BR-IRP) customers:
- Reduce the maximum surcharge for BR-IRP customers. With the step to reduce the overall maximum surcharge from 200% to 25% for Saskatchewan BR customers, SGI is also changing the maximum additional surcharge that BR-IRP customers will be subject to from 400% to 200%. These additional surcharges will continue to be applied to customers, at the discretion of SGI, if your loss ratio is greater than 80% and you have been at-fault for multiple collisions.
- Eliminate the Fleet-size exemption. Effective May 1, 2016 all BR-IRP customers will be subject to these additional surcharges if your loss ratio is greater than 80% and you have been at-fault for multiple collisions, regardless of your fleet size.
- Currently, fleets with 5 or less vehicles are not subject to these additional surcharges, which creates an unfair advantage for them. This change will level the playing field between all BR-IRP customers.
Potential future changes:
- Over time, SGI would like to grow the maximum discount to 25% to fully balance the BR scale. This change, however, would require an increase to the base rate, so it will be examined with the next Auto Fund Rate program and has no specific date.