REGINA — Auto insurance rates are poised to increase on 55 per cent of Saskatchewan vehicles, as the provincial rate review panel on Tuesday gave the green light to SGI's request for an average 4.2-per-cent hike.
The rate re-balancing still needs the seal of approval from the Saskatchewan Party government before it could take effect Nov. 1.
"This information will go to cabinet at the earliest possible time and then cabinet will review (the panel's) decision and we will come forth with an opinion and make it public," said June Draude, minister responsible for SGI.
Decisions about increases "aren't taken lightly," Draude said, although cabinet typically approves the findings of the rate review panel.
Not everyone would see a rate hike under the proposed change. For about 55 per cent — or 553,000 vehicles — the average rate increase will be $55. About another 13 per cent, or 126,000 Saskatchewan vehicles, will see an average reduction of $21. A further 32 per cent, representing 321,000 vehicles, won't see a rate change.
SGI made the request to the rate review panel in the spring, citing rising claim costs and reduced investment income. The Crown insurer noted with the release of its latest annual report in April that the Saskatchewan Auto Fund lost $42.7 million in 2008 and had to draw down its rate stabilization reserve to $102.5 million.
In its report published online, the rate review panel emphasized that the Auto Fund "operates on a self-sustaining basis over time, and neither receives money from, nor pays dividends to, the Government of Saskatchewan. There is no profit component factored into the premiums that Saskatchewan Auto Fund customers pay for basic insurance coverage in Saskatchewan."
The panel also calls on SGI to submit a rate application on an annual basis, to guard against the possibility of having to make big adjustments. The last rate increase was in 2000.
But news of the pending rate increase almost didn't make it to the local media on Tuesday due to a recent byelection call.
A press release alerting the Leader-Post to the panel's recommendation for an average 4.2 per cent increase was issued Tuesday morning, but was quickly recalled due to a law that severely curtails any public comment from government officials during a byelection period. The restrictions also apply to bodies such as the rate review panel, but not to government ministers.
Byelections are being held Sept. 21 to fill vacancies in Regina Douglas Park and Saskatoon Riversdale.
The law means media outlets based in Saskatoon or Regina won't receive faxed or e-mailed news releases from the government ministries or associated bodies until after the vote. However, ministry releases will still be accessible on the government's website. The government also won't make any announcements in either city for the next four weeks.
Justice Minister Don Morgan said it may be time for an overhaul of that election legislation. While intended to ensure a candidate running for the governing party doesn't have an advantage, he noted the law was drafted prior to the widespread usage of the Internet.
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Monday, September 28, 2009
Tuesday, September 15, 2009
Buyers of Home, Auto Insurance Say They're Happy with Insurers
Most consumers of auto and homeowners insurance seem to be happy with their insurers, says a new indsutry study.
A new public opinion study by the Insurance Research Council (IRC) reported that 91 percent of respondents with auto insurance said that they were either very satisfied (61 percent) or fairly satisfied (30 percent) with their current auto insurer. Eighty-nine percent of homeowners said that they were either very satisfied (56 percent) or fairly satisfied (33 percent) with their homeowners insurance company.
The study also found that most consumers are satisfied with the experience of shopping for auto insurance. Among respondents who had shopped for auto insurance in the previous 12 months, three out of four respondents said they were very satisfied (24 percent) or fairly satisfied (51 percent) with the overall experience. Sixty-nine percent of respondents were very or fairly satisfied with the range of product and price options they found.
The study also looked at satisfaction among respondents in two groups of states with different levels of government involvement in the insurance market. The study found that respondents in states with government-based regulation of the insurance market were no more likely than those in states in which insurance is primarily regulated by market forces to say they were satisfied with their auto or homeowners insurer.
"The healthy level of consumer satisfaction with auto and homeowners insurance is good news for the industry," said Elizabeth Sprinkel, senior vice president of the IRC. Sprinkle says the study indicates that consumers do not benefit in terms of satisfaction from heavy government involvement in the insurance market.
The report, Public Attitude Monitor 2009, Issue 2: Consumer Satisfaction, is based on a survey of 1,002 respondents in an online poll conducted in December 2008 by Harris Interactive on behalf of the IRC. The survey also asked respondents about recent non-claim contact with their auto insurers, about their reading of mandated brochures or pamphlets inserted with policy renewals, and their opinions on recent cost increases in various lines of insurance.
Source
A new public opinion study by the Insurance Research Council (IRC) reported that 91 percent of respondents with auto insurance said that they were either very satisfied (61 percent) or fairly satisfied (30 percent) with their current auto insurer. Eighty-nine percent of homeowners said that they were either very satisfied (56 percent) or fairly satisfied (33 percent) with their homeowners insurance company.
The study also found that most consumers are satisfied with the experience of shopping for auto insurance. Among respondents who had shopped for auto insurance in the previous 12 months, three out of four respondents said they were very satisfied (24 percent) or fairly satisfied (51 percent) with the overall experience. Sixty-nine percent of respondents were very or fairly satisfied with the range of product and price options they found.
The study also looked at satisfaction among respondents in two groups of states with different levels of government involvement in the insurance market. The study found that respondents in states with government-based regulation of the insurance market were no more likely than those in states in which insurance is primarily regulated by market forces to say they were satisfied with their auto or homeowners insurer.
"The healthy level of consumer satisfaction with auto and homeowners insurance is good news for the industry," said Elizabeth Sprinkel, senior vice president of the IRC. Sprinkle says the study indicates that consumers do not benefit in terms of satisfaction from heavy government involvement in the insurance market.
The report, Public Attitude Monitor 2009, Issue 2: Consumer Satisfaction, is based on a survey of 1,002 respondents in an online poll conducted in December 2008 by Harris Interactive on behalf of the IRC. The survey also asked respondents about recent non-claim contact with their auto insurers, about their reading of mandated brochures or pamphlets inserted with policy renewals, and their opinions on recent cost increases in various lines of insurance.
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