Manitoba Public Insurance wants 2% rate hike for 2026

Manitoba Public Insurance has filed an exertion with the province's Public Utilities Board to rise its rates starting adjacent April.

The Crown security corp is seeking approval for a 2.07 per cent summation to the wide rates of its cosmopolitan compulsory automobile security for the 2026-27 fiscal year, MPI said successful a Wednesday quality release.

If approved, the proprietor of an mean backstage rider conveyance would wage $21 much a year, MPI said successful a quality merchandise Wednesday. 

The corp says it has worked to support security rates affordable successful Manitoba, but security companies crossed North America are dealing with a volatile market, wherever the outgo of claims continues to climb. Modern cars are much analyzable and incorporate precocious exertion that is much costly to repair, MPI said. 

The caller rates, if approved, would beryllium effectual April 1, 2026, MPI said, but due to the fact that renewal dates are staggered, immoderate conveyance owners wouldn't spot the caller rates until March 31, 2027.

The Public Utilities Board usually issues its bid successful December, MPI said successful its release.

Last year, MPI requested a 3 per cent summation to security rates.

However, successful January, the PUB rejected that request, and alternatively ordered MPI to raise its basal rates by 5.7 per cent for the 2025-26 fiscal year.

The autarkic regulator stated successful its determination that approving the requested little complaint hike would pb to "much higher" rates successful aboriginal years.

'Promising signs': consumers' relation lawyer

Chris Klassen, a lawyer who represents the Manitoba subdivision of the Consumers' Association of Canada, said the projected hike for adjacent twelvemonth is not surprising, fixed the pressures the corp is facing. 

But he said the public will person to hold until the PUB's hearing in the fall to hear MPI's evidence, and find whether the corporation really needs the summation it's asking for to screen its costs.

But determination are parts of the Crown corporation's exertion the consumers' relation is cautiously pleased to see, said Klassen.

For instance, it indicates plans to reduce IT spending and investment, after the corp recently pulled the plug connected Project Nova, the IT overhaul task that bled wealth since it was archetypal launched successful 2019. 

He besides noted the exertion doesn't include significant increases successful staffing oregon operating expenses.

"MPI is simply a corp successful the midst of a recovery," said Klassen.

"There are promising signs, but we inactive request to marque definite determination are bully plans successful spot to support consumers' interests moving forward."

Changes to operator ratings, deductibles proposed

The corp is besides applying to the Public Utilities Board to grow its merit scale, to see a caller level operator information rating.

Currently, the standard tops retired astatine Level 19, astatine which drivers get a $30 discount connected their licence renewal (which has a basal interest of $55) and a 48 per cent discount connected their conveyance premium.

If approved, those who determination into the caller Level 20 would prevention 53 per cent on the outgo of their driver's and conveyance insurance, MPI said.

MPI's complaint exertion besides proposes changing the deductible for its basal insurance, expanding it from $750 to $1,000. That alteration is needed to "keep the basal merchandise affordable and comprehensive," the insurer says.

It would besides adhd a caller $750 enactment to the database of little deductibles it offers, which includes $200, $300 oregon $500 deductible options.