Manitoba Public Insurance announced it has requested a 2.7 per cent overall rate increase for the 2018/19 insurance year in its general rate application filed with the Public Utilities Board today. If approved, the average passenger vehicle owner will pay about $29 more in premiums per year, or less than $3 per month.
“The overall premium revenue requirement for the Basic insurance program in 2018/19 results from an ongoing focus on fiscal prudence and cost containment, which results in a direct financial benefit for Manitoba rate payers,” Dan Guimond, president and chief executive officer of Manitoba Public Insurance said today. “Without these efforts, the indicated rate requirement would have been significantly higher at 7.7 per cent,” said Guimond.
“We recognize that our customers expect us to deliver comprehensive auto insurance coverage and service at rates that are predictable, stable and among the lowest in all of Canada. We believe this application continues to deliver on that mandate.”
This year’s rate application also addresses concerns over significant undercapitalization of the Basic Autopac insurance program by seeking to establish an adequately sized rate-stabilization reserve that can be used to absorb variations in revenues, claims costs and ongoing volatility in the financial markets, which affects investment income and future claims liabilities.
Also under the proposal, the interest rate forecast for rate setting purposes would be updated as at the end of November 2017 with final approved rates established through a compliance filing to the general rate application in December 2017 to take effect for policies effective on March 1, 2018 or later. Doing so will provide a better basis for interest rate forecasting for the 2018 insurance year.
“Our goal is to continue working collaboratively with the Public Utilities Board to reach consensus on these important issues, which will ultimately help to ensure the Basic insurance program operates on a self-sustaining basis for the benefit of all Manitobans,” added Guimond.
If approved, a total of 637,440 vehicles (excluding trailers and off-road vehicles) will receive a premium increase with 54.2 per cent of these vehicles increasing by less than $50 per year. Approximately 35.5 per cent of all vehicle owners will see no change or a decrease in premium over 2017/18 rates.
The average premium for the private passenger vehicle class will be $1,086.
While individual rates will continue to vary based on the type of vehicle being insured, vehicle use, rating territory, and driving history, the following overall rate increases have been requested by major vehicle class.