Manitoba Public Insurance has applied to increase overall auto insurance rates by three per cent.
The general rate application filed Friday, if eventually approved by the Public Utilities Board, would take effect April 1. Because renewal dates are staggered, some vehicle owners wouldn’t pay the new rates until March 31, 2026.
“MPI’s focus remains on providing stable and affordable rates for Manitobans even as we face increasing financial pressures,” MPI CEO Satvir Jatana said in a news 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.”
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A vehicle damaged in the Aug. 24 hailstorm.
The Crown corporation said 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.”
MPI’s total insurance expense for the year was $1.7 billion, an increase of $334 million, or 24 per cent, compared with the previous year.
The Crown corporation said the Aug. 24 hailstorm in the Winnipeg area was the largest natural catastrophic event in MPI’s history. More than 15,000 hail-related claims were filed last year. MPI said the claims resulted in a $50-million impact to net income, created significant backlogs and increased the amount the corporation had to pay out in claims.
The average cost per claim has increased by more than $1,100 in the past year, MPI said. The corporation reported an overall net loss of $129.5 million in 2023-24, driven largely by the overall increase in incurred claims, it said.
“We will continue our focus on fiscal prudence, stability and affordability while providing outstanding products and services for Manitobans,” Jatana said.
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Robert Shuster points out the damage sustained to his car as a result of the hailstorm.