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.
Source
Monday, July 20, 2009
State Farm to raise auto rates
State Farm Insurance has filed for a statewide 3 percent increase in auto insurance rates, citing increased costs in paying claims. The insurer said the new rates will go into effect for new and renewal policies with State Farm Mutual - the company's primary auto insurance subsidiary - beginning on Aug. 3.
"Costs associated with providing auto insurance in Texas have trended upward recently," said Kevin Davis, a spokesman for the company. "This rate adjustment is necessary for State Farm to remain competitive while absorbing rising costs and maintaining its level of risk."
State Farm Mutual, which insures about 3 million vehicles in Texas, last raised rates in October by an average 2.4 percent. Average increases in Dallas County will range from 0.5 percent in the northwestern part of the county to 4 percent in south central areas. The average increase in Collin County will be 3.1 percent.
Source
"Costs associated with providing auto insurance in Texas have trended upward recently," said Kevin Davis, a spokesman for the company. "This rate adjustment is necessary for State Farm to remain competitive while absorbing rising costs and maintaining its level of risk."
State Farm Mutual, which insures about 3 million vehicles in Texas, last raised rates in October by an average 2.4 percent. Average increases in Dallas County will range from 0.5 percent in the northwestern part of the county to 4 percent in south central areas. The average increase in Collin County will be 3.1 percent.
Source
Monday, July 13, 2009
Auto insurance rates climbing in Arizona
Many insurance providers are revving up auto insurance rates across Arizona, continuing an upward trend that began last year.
According to the Arizona Department of Insurance, 77.46 percent of insurers that have reported auto insurance rate changes this year either have or are increasing their rates. The highest percentage increases are Colorado Casualty Insurance Co., a Liberty Mutual Group company, up 30.20 percent, and Garrison Property and Casualty Insurance Co., a USAA company, up 30.10 percent.
Insurers have all year to report any changes they make to their auto insurance rates, said Erin Klug, department spokeswoman.
"There's no requirement that they change their rates at any particular time," she said.
In 2008, an overall average increase of 3.72 percent was reported among insurers filing rate changes that year, according to the department. That's up from a .32 percent decrease in 2007.
"There is a small uptick ... in insurance rates that appears to be happening at this time," said Ron Williams, executive director of the Arizona Insurance Council. "It's balanced by the fact that in 2006, the 20 largest insurers in the state dropped their auto insurance rates by 5 percent.
"We have times when the competitive nature of the insurance business here in Arizona allows for rate decreases, and then we have these times where losses and costs that insurance companies incur result in higher rates."
Colorado Casualty has been paying out more in claims than it has been receiving in premiums, said spokesman Paul Hollie. Colorado Casualty insures commercial vehicles, he said.
"(Premiums in Arizona are) underpriced for the risk that the insurance company takes, so from time to time you have to make adjustments based on market," he said. "Additionally, Colorado Casualty is still very competitive in that marketplace. Some customers, depending on where they are in the spectrum, will actually see a rate decrease."
Clay Allen, USAA spokesman, said USAA companies, including Garrison Property and Casualty, had a combined auto insurance rate increase of 9.9 percent this year in Arizona. Garrison is a newer USAA company that began providing insurance in Arizona three years ago, he said.
"After a few years of loss experience in claims, we determined that those original Garrison auto insurance rates were inadequate, and that's why we filed the rate increase," he said. "Overall, Garrison and our other companies, we're seeing our auto loss trends steadily increase, and those are being driven by a growing number of claims and higher repair and related medical expenses associated with those claims."
USAA provides coverage to military-related personnel, including active duty and reserve, retired or direct family of a military member.
None of the three largest auto insurers in Arizona - State Farm Mutual Auto Insurance Co., Farmers Insurance Co. of Arizona and American Family Mutual Insurance Co. - reported increases. In 2008, those companies had 30.3 percent of policyholders across Arizona.
State Farm hasn't filed any rate change, while Farmers reported a .4 percent decrease and American Family reported a 3.1 percent decrease.
State Farm's auto insurance products are appropriately priced to risk, said spokeswoman Cheryl Willis-Blakes.
Arizona's highly competitive insurance market means consumers have plenty of choices if they feel their rates are too high, Klug said. The department's Web site includes an auto insurance premium comparison guide, at www.id.state.az.us/autopremium.html.
Policyholders should examine their policies at least once a year to see if they could be paying less, Williams said.
"The insurance companies really do vie for our business, so consumers are encouraged to do some comparison shopping," he said.
Source
According to the Arizona Department of Insurance, 77.46 percent of insurers that have reported auto insurance rate changes this year either have or are increasing their rates. The highest percentage increases are Colorado Casualty Insurance Co., a Liberty Mutual Group company, up 30.20 percent, and Garrison Property and Casualty Insurance Co., a USAA company, up 30.10 percent.
Insurers have all year to report any changes they make to their auto insurance rates, said Erin Klug, department spokeswoman.
"There's no requirement that they change their rates at any particular time," she said.
In 2008, an overall average increase of 3.72 percent was reported among insurers filing rate changes that year, according to the department. That's up from a .32 percent decrease in 2007.
"There is a small uptick ... in insurance rates that appears to be happening at this time," said Ron Williams, executive director of the Arizona Insurance Council. "It's balanced by the fact that in 2006, the 20 largest insurers in the state dropped their auto insurance rates by 5 percent.
"We have times when the competitive nature of the insurance business here in Arizona allows for rate decreases, and then we have these times where losses and costs that insurance companies incur result in higher rates."
Colorado Casualty has been paying out more in claims than it has been receiving in premiums, said spokesman Paul Hollie. Colorado Casualty insures commercial vehicles, he said.
"(Premiums in Arizona are) underpriced for the risk that the insurance company takes, so from time to time you have to make adjustments based on market," he said. "Additionally, Colorado Casualty is still very competitive in that marketplace. Some customers, depending on where they are in the spectrum, will actually see a rate decrease."
Clay Allen, USAA spokesman, said USAA companies, including Garrison Property and Casualty, had a combined auto insurance rate increase of 9.9 percent this year in Arizona. Garrison is a newer USAA company that began providing insurance in Arizona three years ago, he said.
"After a few years of loss experience in claims, we determined that those original Garrison auto insurance rates were inadequate, and that's why we filed the rate increase," he said. "Overall, Garrison and our other companies, we're seeing our auto loss trends steadily increase, and those are being driven by a growing number of claims and higher repair and related medical expenses associated with those claims."
USAA provides coverage to military-related personnel, including active duty and reserve, retired or direct family of a military member.
None of the three largest auto insurers in Arizona - State Farm Mutual Auto Insurance Co., Farmers Insurance Co. of Arizona and American Family Mutual Insurance Co. - reported increases. In 2008, those companies had 30.3 percent of policyholders across Arizona.
State Farm hasn't filed any rate change, while Farmers reported a .4 percent decrease and American Family reported a 3.1 percent decrease.
State Farm's auto insurance products are appropriately priced to risk, said spokeswoman Cheryl Willis-Blakes.
Arizona's highly competitive insurance market means consumers have plenty of choices if they feel their rates are too high, Klug said. The department's Web site includes an auto insurance premium comparison guide, at www.id.state.az.us/autopremium.html.
Policyholders should examine their policies at least once a year to see if they could be paying less, Williams said.
"The insurance companies really do vie for our business, so consumers are encouraged to do some comparison shopping," he said.
Source
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