MPI Applies for Insurance Rate Increase for 2025-26

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Manitoba Public Insurance (MPI) has filed its provisional General Rate Application with the Public Utilities Board (PUB) today, requesting approval of a three per cent increase to overall rates for the 2025/26 insurance year.

“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. “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 per cent compared to the previous year.

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.”

MPI 2023/24 Financial Results

The unique challenges MPI has faced over the past year are reflected in its annual financial results, also released today. The Corporation reported an overall net loss of $129.5 million in 2023/24, driven largely by the overall increase in incurred claims.

Each of the Corporation’s individual lines of business experienced underlying performance impacts. More specifically:

  • The Basic insurance line of business reported a Net loss of $80.2 million as compared to a Net income of $1.1 million in 2022/23. The total number of Autopac claims in 2023/24 rose by 40 per cent compared to the previous year.
  • The Extension line of business reported Net income of $18.1 million as compared to a Net income of $33.3 million in 2022/23. Incurred claims in this line of business increased over 30 per cent last year, including a single loss event of $10 million.
  • The Special Risk Extension (SRE) line of business reported a Net loss of $54.2 million as compared to a Net income of $16.6 million in 2022/23. Incurred claims rose nearly 54 per cent in this line of business. MPI has introduced changes to liability limits for SRE customers to reduce its exposure to large losses.
  • The Drivers and Vehicles Act operations (DVA) line of business reported a Net loss of $13.2 million as compared to a Net loss of $10.4 million in 2022/23.


2023/24 Key MPI Numbers

  • Average number of Autopac claims reported per working day – 1,184
  • Total Autopac claims reported – 274,585
  • Third party liability bodily injury and Personal Injury Protection Plan injury claims reported – 11,732
  • Property damage claims reported – 262,853
  • Average Number of Autopac policies in force – 1,278,461