The Manitoba Public Utilities Board (PUB) has issued its decision over Manitoba Public Insurance’s (MPI) general rate application for 2022-23, approving a 1.57% rate decrease for policyholders.
The approved rate reduction marks the third year in a row that MPI is offering a rate decrease to its public auto insurance customers.
“MPI continues to demonstrate strong financial performance and this is great news for Manitobans,” said Crown Services Minister Jeff Wharton. “Since the start of COVID-19 pandemic, we continue to benefit from having a public insurance model which has resulted in almost $500 million going back into the hands of Manitobans.”
“We are pleased with the PUB’s ruling as this is good news for our customers,” added MPI president and CEO Eric Herbelin. “Our general rate application was put forward with careful considerations of the pandemic impacts and with fiscal prudence at the forefront.”
In addition to the rate decrease, the PUB also approved a rebate of approximately $312 million. This is MPI’s third rebate in just over a year – the insurer had previously issued $110 million and $69 million during the last two rebates. The approved $312 million rebate is a step-up from MPI’s original proposal for about $250 million.
In October, the Manitoba branch of the Consumers’ Association of Canada (CAC) had called out MPI, saying that the insurer was shortchanging its customers when it initially planned for a $250 million rebate. The consumer advocate had argued that MPI is transferring $113 million in excess capital to pay for the rising costs of driver and vehicle licensing, as well as to upgrade its IT systems – the CAC believes, that this money should be returned to drivers.
Cheques for the latest rebate round are expected to be distributed to policyholders in early February 2022, MPI said. More details about the rebate will be made available on MPI’s website in the weeks to come.
