SGI is giving a raise to Saskatchewan's auto-body shops which means there will be an increase in insurance premiums.

"The increase that we've agreed on with the auto repair industry is a three year deal commencing January 1st of 2014 and it goes until December 31st, 2016," Said Paul McIntyre, assistant vice president of urban claims and salvage for SGI. "So a three year deal. and it's 10 per cent each year."

McIntyre says that one of the factors making this increase necessary is the significant recruitment and retention problem for certified auto-body repairmen.

"An example I'll give you is that SIAST Kelsey Produces, I believe 27 per year, and the industry requirements, not including SGI, are 40."

McIntyre also says the insurer plans to adjust the way estimates are done when and autobody shop discovers further damage to a vehicle while it is being fixed.

He also adds that the auto-body repair industry is in competition with other industries as well.