The Saskatchewan government’s proposed insurance rate hikes for motoryclists were all due to financial losses. Motorcyclists weren’t paying their share, SGI claimed, and either cars were going to have to pay the difference, or SGI would take a loss – or they’d have to raise rates.
Some of that mess seems to be cleared up, and rates aren’t climbing as much as expected at first, but how fair is that claim of financial woe?
While SGI might have lost some money in their home province, the for-profit arm of the insurer (SGI Canada, which sells insurance in other provinces) seems to be doing well. They made $82 million in profit in 2012, says CBC. Their Auto fund, which insures drivers and riders in Saskatchewan, is non-profit.
It would be great if the insurance board considered those numbers when their motorcycle insurance rates come under review by committee next month; there are other ways they’re trying to save money as well, such as considering dropping death benefit coverage, but it seems strange the organization can make money elsewhere, but has to jack up rates sky-high in their home turf to break even.
