Rise in claims results in MPI requesting three per cent rate increase

Manitoba Public Insurance (MPI) is asking for a three per cent hike to overall rates for the coming year.

In a release Friday, MPI said it has filed a general rate application with the Public Utilities Board (PUB).

The Crown corporation said the increase is needed to address a rise in auto insurance claims – stating a hailstorm last August “was the largest natural catastrophic event in MPI’s history.” In total, MPI said over 15,000 hail-related claims were filed last year resulting in a negative $50 million impact on net income.

“MPI’s focus remains on providing stable and affordable rates for Manitobans even as we face increasing financial pressures,” Satvir Jatana, MPI’s president and CEO, said in the release. “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 public insurer also said the rate jumps account for labour, raw material and technology costs.

MPI said the corporation’s total insurance expense for the year was $1.7 billion, which was a $334 million jump from the previous year.

If the PUB approves the hike, the new rate will go into effect April 1, 2025.