Motorcycle owners in Saskatchewan are not happy with SGI as they face potential rate hikes.
On Wednesday evening, they voiced their concerns at a virtual rate review hearing for motorcycle coverage.
The watchdog organization RAGE Saskatchewan, which says it lobbies for the motorcycle community in the province, said current economic conditions and claim rates do not warrant the proposed increases.
RAGE Saskatchewan spokesperson Don Fuller claims SGI is pricing motorcyclists out of long-term coverage.
“What they’ve done is forced their customer base to take a low-cost alternative,” Fuller told Global News.
“So the typical revenue stream that used to be quite strong for motorcycle licensing — it was fine — is now reduced to a trickle.”
SGI said it is currently paying out more than it is taking in when it comes to motorcycle claims.
It is seeking to raise some motorcycle insurance rates by around 10 per cent to balance that, as well as short-term permit rates, which SGI said have not increased in 20 years.
The virtual meeting included a breakdown of which vehicles could see decreased rates and which could see increases based on the recent claim and injury statistics for each category.
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In a letter to the Saskatchewan Rate Review Panel, SGI said it is considering additional options to address the rate issue for motorcycle owners.
Those options are related to the safe driver recognition program or injury coverage, but SGI said it will take time to explore and determine if those are feasible.
SGI said if those options are feasible, it will require “significant computer system changes and would need to go through the formal approval process due to the financial impact.”
“At this time, SGI does not see options that can be implemented quickly enough to address the current motorcycle rate need.”
The Saskatchewan Rate Review Panel is tasked with reviewing SGI’s rate proposal and gathering input from stakeholders, including the public.
Recommendations from the panel are then sent to the provincial cabinet, which makes the final decision on any rate changes.
SGI said any rate changes will take effect on Jan. 21, 2022.
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