A report by Hellosafe, an insurance coverage evaluation firm, says automotive insurers in Saskatchewan saved an estimated $169 million final yr.
With fewer automobiles on the street as folks stayed dwelling due to the pandemic, Hellosafe estimates accidents have been down 22.5 per cent and car-related claims have been down 26.7 per cent.
“It is going to be fascinating to see if all of the insurance coverage firms will make refunds, and which kinds will take these refunds,” mentioned Hellosafe CEO Antoine Fruchard in a information launch.
Fruchard mentioned prospects ought to profit from a slight drop in automotive insurance coverage premiums within the coming month.
“Nevertheless, in sure provinces, the presence of (virtually) automotive insurance coverage monopolies is problematic, not permitting policyholders to learn from a various provide which might end in decrease premiums for them.”
Hellosafe, an organization based mostly in France that makes a speciality of insurance coverage evaluation, additionally estimates:
The Metropolis of Saskatoon saved virtually $40 million in automotive insurance coverage payouts in 2020 – the best complete among the many cities of Saskatchewan.
Regina saved $34.3 million, Prince Albert saved $4.8 million and Moose Jaw saved $4.4 million.
SGI can be the most important beneficiary of these financial savings.
Jeff Stepan, chief monetary officer at SGI, mentioned he could not vouch for Hellosafe.ca’s numbers.
Stepan mentioned SGI wasn’t ready to provide out full yr numbers as the corporate’s fiscal years runs from April 1 to March 31.
He did say SGI’s collision claims have been down 20 per cent during the last 9 months of 2020.
He mentioned these financial savings have been considerably offset by the common value of every declare going up 5 to 10 per cent.
Stepan mentioned SGI’s investments dropped $200 million in March due to COVID-19, although markets have since recovered.
One province over, Manitoba Public Insurance coverage (MPI) returned about $170 million in refunds to its prospects final yr, averaging out to greater than $200 per buyer.
Manitoba’s Public Utilities Board authorised a median price lower of 8.8 per cent, a financial savings of roughly $110 per buyer.
Stepan mentioned there are not any plans proper now for SGI to subject any refunds.
He mentioned any financial savings SGI accumulates will go into its price stabilization reserve and stays within the auto fund.
“That is used as a cushion to stop in opposition to huge will increase in charges in future years,” Stepan mentioned.
“After we’re setting our charges, we set our charges based mostly on long run averages, not simply what we saved within the final yr or what our declare prices have been within the final yr.”
He mentioned this technique is why there hasn’t been a price enhance in seven years.
To vary insurance coverage charges, SGI has to make an software to the Saskatchewan Fee Evaluation Panel.
“We’re not ready proper now to see whether or not charges will probably be going up or down, that price indication continues to be getting finalized,” Stepan mentioned.
He mentioned one thing like a large hailstorm or different climate disaster may nonetheless value SGI tens of millions of {dollars}.
“So even the truth that we’ve got had decrease declare prices within the first 9 months of our fiscal yr due to COVID, that does not robotically translate into financial savings or decrease charges.”
Nationally, Hellosafe estimates there was a 32.9 per cent decline in car-related claims and $6.7 billion in payouts was saved.
