MPI rates to rise 5.7% in coming fiscal year, driving insurance for average vehicle up $51
Regulator rejects Manitoba insurer's request for lower hike, which wouldn't cover Crown corporation's costs
Manitoba Public Insurance has been ordered to raise its basic rates by 5.7 per cent on April 1, an increase that will result in the insurance tab for passenger vehicles rising an average of $51 during the 2025-26 fiscal year.
In an order issued Tuesday, the Public Utilities Board rejected an MPI request for a three per cent rate hike, which is less than half the increase the Crown corporation said in submissions it needed to cover costs in the coming year.
The independent regulator stated in its decision that approving a lower rate hike now would lead to "much higher" rates in future years.
Katrine Dilay, a lawyer for the Public Interest Law Centre, said her clients at the Manitoba branch of the Consumers' Association of Canada are pleased, even though drivers will pay more in the short term.
"They represent consumers, but they also understand that by seeking artificially low rates this year, that has a significant potential to lead to higher rate increases in the future, which is not in the interest of consumers," Dilay said in an interview.
During hearings before the Public Utilities Board, Manitoba Public Insurance could not explain why it was seeking a lower rate or provide any data to demonstrate it was warranted, she said.
"The CEO and other MPI witnesses were asked repeatedly during the hearing where this three per cent number came from, and they were not able to produce concrete actuarial or statistical evidence to support it," Dilay said.
Matt Wiebe, Manitoba's minister responsible for MPI, said his government did give the NDP-appointed board a mandate to make the Crown corporation's insurance rates as low as possible.
"We respect the work of the PUB and we respect the decision that they've made, but it shows that there's more work that we need to do to get the corporation on track and continue to focus on affordability to keep car insurance cheaper for Manitobans," Wiebe said in an interview.
Not all vehicles will see a 5.7 per cent increase in the coming fiscal year, the Public Utilities Board said in a statement.
An individual's rate is determined by factors like their driving record and claims history, the area where the ratepayer lives, the kind of vehicle and the purpose for which it's driven, the board stated.
Manitoba Public Insurance posted a $130-million loss during the last fiscal year and has been struggling to control costs on Project Nova, a digital transformation project that spiralled out of control when the Progressive Conservative government was in power.
The Public Utilities Board ordered MPI on Tuesday to closely monitor the project, which is supposed to allow consumers to buy auto insurance online.
Wiebe said his government will have more to say about Project Nova this winter but would not commit to a timeline for completing the digital transformation.
In a statement, Wayne Balcaen, the MPI critic for the Opposition Progressive Conservatives, accused the NDP government of mismanaging the public insurer.
The Public Utilities Board also recommended MPI appoint an independent expert to study the best ways to diagnose, assess and manage traumatic brain injuries, and compare those with the practices currently used by the public insurance provider.
The Crown corporation said in a statement it will respect the PUB's orders and recommendations.