The BR program rewards businesses that have a good claims history with discounts up to 15% 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 their drivers 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
Effective May 1, 2017, the BR scale is changing:
BR scale comparison
New BR scale highlights:
- The maximum discount is growing from 10% to 15%.
- The scale has changed, customers with a loss ratio less than 61% will receive a greater discount.
- The break even range and some surcharge ranges have changed to help offset the increase to the discounts.
Loss ratio calculation:
- SGI uses a loss ratio calculation to determine 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. For assessments completed prior to May 1, 2016, SGI capped each claim at no more than twice the premium paid for the year the loss occurred. SGI changed the claims cap to the lower of 3x the business's premium or $50,000 for all assessments effective May 1, 2016 and later. This change benefits customers with a small premium base, but with the addition of the $50,000 cap, now also benefits larger businesses.
- The $50,000 cap is reviewed regularly in relation to the rate of inflation and will grow over time as claims costs increase.
Capped claim example:
- Small business - In this example, the 3 times the premium cap is applied since it is the smallest amount of the 2 caps resulting in a 60% loss ratio which corresponds to a -3% discount on the new scale.
- Large business - In this example, the $50,000 cap is applied since it is the lower of the 2 cap amounts resulting in a 20% loss ratio which corresponds to an 12% discount on the new scale.
Pro-rated discounts or surcharges:
- Starting with the May 1, 2016 assessments, we 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.
Pro-rated discount/surcharge examples:
- Customer A - In this example, a 0% loss ratio equates to a 15% discount on the new scale, however, because customer A has only been in BR for 2 years, it would be pro-rated to a 6% discount.
- Customer B - In this example, a 206.9% loss ratio equates to a 25% surcharge on the new scale, however, because customer B has only been in BR for 4 years, it would be pro-rated to a 20% surcharge.
International Registration Plan (BR-IRP) customers:
- For Saskatchewan BR customers the overall maximum surcharge is 25%. IRP-BR customers are subject to a maximum surcharge of 200% if the customer's loss ratio is greater than 70% due to at-fault collisions. These additional surcharges will continue to be applied, at the discretion of SGI, if the loss ratio continues to be greater than 70%.
Potential future changes:
- Over time, SGI would like to grow the maximum discount to 25% to fully balance the BR scale. Increasing the discounts, however, may require an increase to the base rate, so it will be examined with future Auto Fund Rate programs and has no specific date.