Home » News » MPI Applies for Insurance Rate Increase for 2025-26

MPI Applies for Insurance Rate Increase for 2025-26

July 5, 2024 4:14 PM | News

Manitoba Public Insurance - MPI

The Manitoba Public Insurance building in downtown Winnipeg. (CHRISD.CA FILE)

WINNIPEG — Manitoba Public Insurance is looking to increase Autopac rates for the 2025-26 insurance year.

The Crown corporation filed a general rate application with the Public Utilities Board on Friday, seeking a three percent increase in overall rates.

MPI’s focus remains on providing stable and affordable rates for Manitobans even as we face increasing financial pressures,” said Satvir Jatana, MPI president and CEO, in a release.

“We are taking necessary steps to manage these impacts, including seeking the lowest possible rate increase to ensure financial stability while continuing to deliver value for our customers.”

MPI says the proposed rate increase is necessary to address a steady and prolonged rise in the cost of claims as well as the cost of labour, raw materials and technology.

MPI’s total insurance expense for the year was $1.7 billion, an increase of $334 million or approximately 24 percent compared to the previous year.

In addition, the August 2023 hailstorm in the Winnipeg area was the largest natural catastrophic event in MPI’s history. More than 15,000 hail-related claims were filed last year, which resulted in a negative $50 million impact to net income, created significant backlogs and increased the amount the corporation had to pay out in claims

MPI says in the last year, the average cost per claim has risen by more than $1,100.

The proposed rates would be effective April 1, 2025, but some vehicle owners won’t pay the new rates until March 31, 2026 due to staggered renewal dates.