MPI not seeking Autopac rate hikes in 2024-25

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This article was published 15/06/2023 (865 days ago), so information in it may no longer be current.

Manitoba Public Insurance is holding the line on Autopac rates while seeking changes to vehicle-for-hire insurance and the driver safety rating scale in its latest application to the Public Utilities Board.

The Crown corporation is asking for no changes to insurance rates in its 2024-25 general rate application, which was submitted to the independent rate setting authority Thursday.

The request is in keeping with a government ordered directive prohibiting material changes to its business while a third-party organizational review is underway.

According to the application, the actuarially indicated rate change would have been a 0.13 per cent reduction.

“While people across the province continue to manage the impacts of the rising cost of living, MPI is proud to provide Manitobans with affordable products and services that meet their needs,” MPI vice-president and chief customer officer Satvir Jatana said in a release.

“If MPI’s rate application is approved, 52 per cent of private passenger class drivers — which make up two-thirds of all policies — will see a decrease in 2024-25.”

The proposed discount will come by way of changes to the driver safety rating system.

The corporation is asking the PUB to approve adding an 18th tier to the DSR scale in 2024-25 and to move all DSR discounts a quarter of the way to their actuarially indicated target.

According to MPI, the changes would mean drivers at the top of the scale would be offered a 48 per cent vehicle premium discount and greater discounts would be applied to all drivers with a rating greater than eight.

The change will require vehicle premiums to be increased to offset lost revenue, according to the application. However, no changes to premiums have been proposed.

Adjustments to the driver safety rating scale were previously ordered by the PUB and would take effect April 1, 2024 if approved.

The auto-insurer is also proposing a second vehicle-for-hire insurance product to bring the corporation into alignment with other Canadian jurisdictions.

MPI hopes to offer a blanket policy which can be purchased by vehicle-for-hire dispatchers to provide basic insurance coverage during defined periods, specifically when a vehicle is being used in a ride-hailing capacity. All vehicle-for-hire groups will be eligible for the blanket policy.

Meanwhile, registered vehicle owners will continue to be able to purchase existing vehicle-for-hire insurance products.

According to MPI, policies would seamlessly switch between a registered owner policy and the new blanket policy, depending on the use of the vehicle, providing more choice to drivers and dispatchers.

Jatana said the rate indication proposed for next year is possible due to the good, overall financial shape of MPI.

“The corporation is moving forward with a renewed focus on fiscal prudence, reducing operating costs in 2024/25 and holding the staff complement at a consistent level.”

Hearings on the rate application begin Oct. 10.

danielle.dasilva@freepress.mb.ca