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October 20, 2004
SGI Withdraws Rate Proposal, Increases Safe Driver Discounts
SGI has withdrawn its application to the Saskatchewan Rate Review
Panel requesting approval of a 10 per cent rate increase for Jan.
1, 2005. The decision is based on new financial information provided
by SGI's external Actuary that forecasts an improved financial position
for the Auto Fund.
"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," said SGI President Jon Schubert. "The increase
to safe driver discounts will take effect Jan. 1, 2005."
SGI put forward the rate proposal in July 2004 based on external
actuarial estimates of claims costs that forecast a small profit
for 2004 and a $14 million loss in 2005, leaving the Auto Fund with
essentially no balance in the Rate Stabilization Reserve.
The new external actuarial estimate, combined with increased investment
earnings and lower than average summer storm damage claims, has
put the Auto Fund in a more positive financial position. Near
break even is expected in 2005, leaving the Auto Fund with a healthy
balance in the Rate Stabilization Reserve of over $120 million.
As a result, a rate increase is not necessary at this time.
"SGI went forward with the rate proposal with the best possible
financial information we had from our external Actuary at the time,"
Schubert said. "Just as we are withdrawing the proposal today
with the best possible financial information we have now.
"We're more than doubling the discounts provided under Safe
Driver Recognition to a maximum of 20 per cent and Business Recognition
to 10 per cent because it's what customers tell us they want - bigger
rewards for safe drivers. We can afford to provide increased discounts
to safe drivers, so we're doing it," Schubert said.
For media inquiries only, contact:
Julianne Jack
SGI Communications
Regina
(306) 775-6907
For all other inquiries contact the SGI Customer Service Centre
toll-free at 1-800-667-9868
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