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Manitoba Public Insurance is asking for a 3% increase to overall rates for the 2025/26 insurance year.
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The Crown corporation filed a general rate application with the Public Utilities Board (PUB) on Friday.
“MPI’s focus remains on providing stable and affordable rates for Manitobans even as we face increasing financial pressures,” said Satvir Jatana, MPI’s President and Chief Executive Officer in a release.
“We are taking necessary steps to manage these impacts, including seeking the lowest possible rate increase to ensure financial stability while continuing to deliver value for our customers.”
The proposed rate increase is necessary to address a steady and prolonged rise in the cost of claims as well as the cost of labour, raw materials and technology. This trend is persisting across MPI’s Basic, Extension and Special Risk Extension lines of business. The Corporation’s total insurance expense for the year was $1.7 billion, an increase of $334 million or approximately 24% compared to the previous year.
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In addition, the August 2023 hailstorm in the Winnipeg area was the largest natural catastrophic event in MPI’s history. Over 15,000 hail-related claims were filed last year, which resulted in a negative $50 million impact to net income, created significant backlogs and increased the amount the Corporation had to pay out in claims.
In the last year, the average cost per claim has risen by over $1,100.
“MPI’s mission is to provide Manitobans with affordable rates,” said Jatana. “Despite the rising cost of claims, MPI, by virtue of its commitment to fiscal prudence, has maintained healthy reserves to help keep rates stable and affordable, while strengthening Manitoba’s public insurance system.”
The PUB normally issues its order in December. The proposed rates would be effective
April 1, 2025, but because renewal dates are staggered, some vehicle owners won’t pay
their new rates until March 31, 2026.
“I am proud of the way MPI employees have come together to manage the challenges we have faced over the past year,” said Jatana. “We will continue our focus on fiscal prudence, stability and affordability while providing outstanding products and services for Manitobans.”
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