Manitoba Public Insurance’s (MPI) rate adjustment request has been approved by the Public Utilities Board (PUB), leading to “historic” premium rate cuts at an average of 8.8% for policyholders.
The rate cut, which takes effect next year on April 01, represents average savings of over $100 per policyholder.
In a previous statement, MPI said that it can afford the rate cuts because it has managed to meet its capital targets. The insurer originally applied for a 10.5% rate reduction, but later changed it to 8.8% after it found that assumed investment returns were lower than expected due to the COVID-19 pandemic.
Former MPI CEO Ben Graham also cited the insurer’s overall fiscal prudence and its efforts against insurance fraud as contributing to the savings.
While most regular customers will see their insurance rates decrease, specific individuals will still see increases. Drivers insured under the passenger vehicle for hire class will face a 20% increase in their rates next year, as well as a subsequent 20% increase for each of the following two years, CBC News reported.
According to the PUB, the insurance rates for these vehicles are heavily subsidized already, which it said is a “patent unfairness” to taxi drivers.
