Manitoba Public Insurance (MPI) has applied for its largest rate decrease in three decades.
According to the public auto insurer’s filing with the Public Utilities Board on Wednesday, they’re requesting an overall decrease of 10.5 per cent — meaning the average passenger vehicle owner’s bill will drop by $130 a year.
MPI president Ben Graham said the proposed decrease reflects the corporation’s strong financial position.
“While many private auto insurers across Canada are asking for double-digit rate increases, Manitobans are receiving the benefits of a well-executed public auto insurance model,” said Graham.
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“This decrease was made possible with our multi-pronged strategy focusing on insurance fundamentals such as fiscal prudence of managing claims and MPI expenses, changes made to our product suite, implementation of a better reinsurance strategy aimed at reducing volatility, enhanced investment management strategy, and building an industry acceptable level of reserves to absorb rate shocks.”
MPI gave its customers a rebate in May — attributing much of it to fewer claims being made during the COVID-19 pandemic, with fewer vehicles on the road.
The new proposed rate changes will be addressed at Public Utility Board hearings this fall, and would be effective April 1, 2021 — although MPI said due to staggered renewal dates, some vehicle owners would have to wait until March 31 of the following year to begin paying the new rates.
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