MPI looks for rate decrease, proposes changes to Driver Safety Rating system

MPI applies for rate decrease Manitoba drivers will likely pay less to insure their vehicles next year as MPI applied for a rate decrease.

Drivers may be paying less for their insurance next year as Manitoba's public insurer is seeking a rate decrease and changes to the Driver Safety Rating system.

Manitoba Public Insurance (MPI) announced it filed its 2023/24 General Rate Application with the Public Utilities Board (PUB) on Tuesday, asking for an average rate decrease of 0.9 per cent.

“Over the course of the last two years, the COVID-19 pandemic resulted in fewer claims, which meant MPI returned nearly $500 million to policyholders in rebates," Mark Giesbrecht, vice president and CEO of MPI. "However, as many Manitobans have returned to previous driving behaviours, so have our overall claims and subsequently our financial forecasting, as reflected in this year’s application.”

Giesbrecht said along with the rate application, MPI is looking to expand the Driver Safety Rating by upping the top end from +16 to +17. He said MPI estimates where drivers have risen due to this expansion would create an additional rate decrease of 0.6 per cent.

Along with this, MPI is asking the PUB to remove the Capital Release Provision as the excess capital was returned to Manitobans in the last round of rebates.

Giesbrecht said this request is provisional as MPI often adjusts its rate indication closer to the Public Utilities Board hearing.

MPI said the Public Utilities Board hearings are scheduled to begin in October, with the board expected to release its order in December. Any changes would take effect on April 1, 2023, however, due to staggered renewal dates, some drivers would not pay the new rates until March 31, 2024.