The BR program rewards businesses that have a 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 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, 2016 the following changes were made in an effort to ensure our programs continue to be effective for our customers :
BR scale comparison
New BR scale highlights:
- To make the scale more balanced the maximum surcharge was reduced from 200% to 25%.
- All customers are 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 is fairer, as there's no longer 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. Prior to May 1, 2016, SGI capped each claim at no more than twice the premium paid for the year the loss occurred.
- Starting with the May 1, 2016 assessments, SGI changed the claims cap to the lower of 3x the business’s premium or $50,000. 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 4% 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 8% 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 10% discount on the new scale, however, because customer A has only been in BR for 2 years, it would be pro-rated to a 4% 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.
Changes for International Registration Plan (BR-IRP) customers:
- Reduced the maximum surcharge for BR-IRP customers. With reducing the overall maximum surcharge from 200% to 25% for Saskatchewan BR customers, SGI also changed the maximum additional surcharge that BR-IRP customers are 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 are 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.
- Prior to May 1, 2016, fleets with 5 or less vehicles were not subject to these additional surcharges, which created an unfair advantage for them. This change levels 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, may require an increase to the base rate, so it will be examined with the next Auto Fund Rate program and has no specific date.