MPI says payouts rose, requests 2% rate hike

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Manitoba Public Insurance says it needs to raise basic vehicle insurance rates after an "unprecedented year" for non-collision claims payouts.

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Hey there, time traveller!
This article was published 17/06/2016 (2357 days ago), so information in it may no longer be current.

Manitoba Public Insurance says it needs to raise basic vehicle insurance rates after an “unprecedented year” for non-collision claims payouts.

On Friday, it submitted an application to the Public Utilities Board that rates rise two per cent next year.

MPI says if its application is approved, the average passenger vehicle owner would pay an additional $17 a year in premium.

Phil Hossack / Winnipeg Free Press files MPI says it's been an "'unprecedented year' for non-collision payouts.

“The corporation experienced an unprecedented 68 per cent increase in comprehensive (non-collision) claims costs,” said Dan Guimond, MPI’s president and chief executive officer, in a news release announcing the rate application.

“Hail claims were the big driver in this increase, coming in $50 million over our projected forecast. Last year’s payout for comprehensive was $125 million, compared to the previous five-year average of $74 million.”

There were approximately 13,000 hail claims opened last year, compared to about 4,000 in 2014. As with other insurers, a number of other financial factors had a negative influence on the corporation’s overall financial performance in its 2015 fiscal year.

Forecasted return for Canadian and U.S. equities was $14 million, or 17.1 per cent, below previous forecasted amounts. Investment income for Basic Autopac was $6 million below previous forecasted amounts.

“Higher claims costs and a negative financial climate resulted in the corporation seeking a small overall rate increase for next year,” said Guimond. “Manitoba Public Insurance collects premiums to reflect projected claim costs, and we are addressing the business reality that claims costs are continuing to rise.”

If approved, a total of 674,894 vehicles (excluding trailers and off-road vehicles) will receive a premium increase ─ 83 per cent of these vehicles (558,561 vehicles) will increase by $40 or less.

The average premium for the private passenger vehicle class will be $1,018.

larry.kusch@freepress.mb.ca

Larry Kusch

Larry Kusch
Legislature reporter

Larry Kusch didn’t know what he wanted to do with his life until he attended a high school newspaper editor’s workshop in Regina in the summer of 1969 and listened to a university student speak glowingly about the journalism program at Carleton University in Ottawa.

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