Following rebates, next rate request will make Manitoba drivers 'extremely happy': MPI

In the midst of a pandemic, the head of Manitoba Public Insurance says the Crown corporation has never been healthier financially — and it's preparing to once again pass the savings on to drivers.

CEO Ben Graham suggested that Manitobans would be pleased with MPI's next rate request.

"Without letting the cat out of the bag … let it be known that Manitobans should be extremely happy in about two weeks from now," Graham told a meeting of the standing committee on Crown corporations Thursday.

MPI has already sent out $110 million in rebate cheques to policyholders, after the number of claims plummeted early in the COVID-19 pandemic, when Manitobans were being urged to stay home and were subsequently off the roads.

Even as pandemic restrictions relax and the number of claims rise, Graham hinted the next rate request — which will be filed with the Public Utilities Board later this month  — will be received favourably. 

After the meeting, he wouldn't say if that meant a rate freeze, or a reduction.

"I don't think I'm going to lose any friends two weeks from now," he said.

Rate decrease last year

Last year, MPI received an overall average rate decrease of 0.6 per cent — which was the first rate reduction the corporation sought in eight years.

He added during the committee meeting MPI has been diligent in handling its finances.

"I think it's fair to say that the corporation has never been financially stronger." 

Graham said the public insurer hasn't had to issue any layoff notices during the pandemic.

Rather than cutting the jobs of employees who saw reduced work — such as adjusters — MPI signed 250 people onto a work-share program. Under that, the federal government covered up to 40 per cent of their salary, while MPI covered the rest.

As well, 60 staff were redeployed to help with Shared Health's programming, Graham said.

He also added the Crown corporation is continuing to move toward increased online delivery of its services.

MPI has several requests for proposals seeking firms to build the back end of a user-friendly interface that the insurer hopes will one day allow customers to complete simple transactions online, like changing an address on a driver's licence.

Graham said that process has been pushed back by four to six weeks due to the pandemic delaying normal business operations, but that's a minimal wait when it will take years to sell products online.

"It's a four-week delay on what is a three-and-a-half-year project," he told reporters.

"I often use the analogy that we're running a $4-billion corporation on an Atari," he quipped, in reference to the maker of video game and computer systems in the 1970s and '80s. MPI must evolve quickly with its customers, he said.

He said it's unfortunate how limited MPI's online offerings have been during the pandemic.

"It definitely would have been an advantage if customers could have done self-service from home."

The Opposition New Democrats led the questioning at the committee hearing and tried to press Graham on the lengthy feud between insurance brokers and the public insurer over the future of service delivery.

Manitoba Public Insurance has questioned whether insurance brokers should still be involved in every transaction, but the brokers say their role is critical.

Conciliator's decision on the way

No decision has been made, however, as the province has mandated a negotiated end to the dispute. Graham said the conciliator's decision may arrive shortly.

He didn't divulge the nature of those discussions, but said insurance brokers play a valuable role in the province and the compensation that MPI pays to brokers is a small part of the revenue they earn.

Crown Services Minister Jeff Wharton intervened when the NDP asked questions regarding the Crown's involvement with insurance brokers, arguing the conciliation process is confidential.

That didn't impress NDP Leader Wab Kinew, who said the government has a habit of intervening in MPI's affairs, such as ordering the conciliation in the first place.

"By this point, Manitobans should be able to access all insurance services online and it's a sad failure of the Pallister government that that's not the case." 

Liberal Leader Dougald Lamont said it is clear the allegations of government interference are a "sore spot" for the province.