Consumers groups raise concerns over MPI rate hike proposal

Public hearings on a proposed rate hike for Manitoba Public Insurance are officially underway.

Public hearings for a proposed insurance rate hike are now underway, but it’s raising concerns from a coalition who fears further increases could be on the way.

Manitoba Public Insurance (MPI) is asking the Public Utilities Board for a 2.07 per cent general rate increase. It’s also seeking a change to the minimum deductible – increasing it from $750 to $1,000.

The Manitoba branch of the Consumer’s Association of Canada, along with the Manitoba Seniors Equity Action Coalition, have joined the hearings as an intervener.

“Even though MPI is asking to increase rates for basic insurance by 2.07 per cent, MPI also plans to collect over nine per cent more in revenues from its customers next year,” said Katrine Dilay, a lawyer representing the groups at the hearings.

“We’re also seeing trends that may lead to more expensive rates into the future, and if MPI does not effectively address these trends, MPI customers may be at risk of higher rate increases in the future.”

The public hearings are set to continue for the rest of the month.