MPI not requesting rate increase for 2024-25

 

As Manitoba Public Insurance (MPI) begins its annual Public Utilities Board (PUB) hearing today, it requests no overall revenue or rate change for the basic insurance program in the upcoming 2024/25 insurance year. Despite no overall rate change requested, individual insurance rates would continue to vary based on vehicle type, vehicle use, rating territory, and driving record.

In June, MPI filed its General Rate Application requesting the zero per cent overall rate change, in accordance with a directive issued by the Government of Manitoba. However, the directive does not apply to the PUB which operates independently, and has ultimate authority to establish basic insurance rates for the 2024/25 insurance year.

The PUB relies on many factors in rate setting, one being Accepted Actuarial Practice (AAP). At the time of June’s filing, the provisional overall revenue requirement calculated in accordance with AAP was minus 0.13 per cent. In October, the overall requirement further decreased to minus 1.48 per cent, primarily driven by positive investment yields, which is great news for Manitobans.

“MPI’s application, including the updated overall AAP indication of minus 1.48 per cent, demonstrates the positive overall financial position of the corporation,” said Marnie Kacher, MPI’s interim President and Chief Executive Officer. “MPI continues to focus on fiscal prudence for the year ahead, while providing Manitobans with affordable products and services to meet their needs.” MPI’s application is based, in part, on its fiscal year-end financials and current interest rates.

As part of its application, MPI also proposes continued expansion of the Driver Safety Rating (DSR) scale, which provides premium discounts for the safest drivers. If approved, MPI will add an additional discount level to the top of the DSR scale, resulting in a 48 per cent vehicle premium discount for drivers at the newly established DSR Level +18. MPI would also apply greater discounts to all DSR levels over DSR Level +8, thereby offering larger premium discounts to more of Manitoba’s safest drivers.

MPI expects the PUB to issue its order in December. Approved rates would become effective April 1, 2024, however because renewal dates are staggered, some vehicle owners will not pay their new rates until March 31, 2025.

(MPI News Release)