Manitoba drivers will face higher insurance costs as Manitoba Public Insurance (MPI) is mandated to increase its basic rates by 5.7% starting April 1. This increase will result in an average rise of $51 for passenger vehicles during the 2025-26 fiscal year.
The Public Utilities Board (PUB) rejected MPI’s initial request for a 3% rate hike, which the Crown corporation stated was insufficient to cover its expenses in the coming year. The independent regulator’s decision emphasized that approving a lower increase at this time could lead to significantly higher rates in the future.
Katrine Dilay, a lawyer representing the Manitoba branch of the Consumers’ Association of Canada, expressed satisfaction with the PUB’s decision. “They represent consumers, but they also understand that by seeking artificially low rates this year, that has a significant potential to lead to higher rate increases in the future, which is not in the interest of consumers,” Dilay stated in an interview. During the PUB hearings, MPI was unable to justify its request for a lower rate increase, lacking concrete data to support its position, according to Dilay.
Manitoba’s Minister responsible for MPI, Matt Wiebe, noted that the government respects the PUB’s decision. However, he also indicated that more work is needed to address the Crown corporation’s financial stability and focus on affordability. It is important to note that not all vehicles will be affected by the 5.7% increase, as individual rates are determined by factors such as driving history, location, vehicle type, and usage.
MPI recorded a $130-million loss in the previous fiscal year and continues to grapple with cost overruns related to the Project Nova digital transformation initiative. The PUB has directed MPI to closely monitor the project, which aims to enable online auto insurance purchases. The government will provide further updates about Project Nova this winter, according to Wiebe.
Furthermore, the PUB recommended that MPI appoint an independent expert to study and compare the methods used to diagnose, assess, and manage traumatic brain injuries. MPI has confirmed that it will abide by the PUB’s orders and recommendations.
