Manitoba Public Insurance (MPI) has been mandated to raise its basic rates by 5.7% beginning April 1, a decision that will increase the cost of insuring the average passenger vehicle by an estimated $51 during the 2025-26 fiscal year.
The Public Utilities Board (PUB) rejected MPI’s request for a smaller 3% rate increase, which the Crown corporation stated was insufficient to cover its operational costs in the coming year. The regulator’s decision, issued on Tuesday, indicated that approving a lower rate hike now would lead to significantly higher rates in the future.
Katrine Dilay, a lawyer representing the Consumers’ Association of Canada’s Manitoba branch, expressed satisfaction with the PUB’s decision, acknowledging that while consumers will face higher costs in the short term, the long-term implications of artificially low rates were a concern. During the hearings, Dilay noted that MPI was unable to provide concrete evidence supporting its request for a 3% increase.
“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 said.
Manitoba’s Minister responsible for MPI, Matt Wiebe, stated that the government respects the PUB’s decision but emphasized the need for further efforts to ensure MPI’s affordability, while still keeping insurance costs as low as possible for Manitobans.
The PUB’s order follows a year in which MPI reported a $130-million loss. The corporation has also been grappling with cost overruns related to Project Nova, a digital transformation initiative. The PUB has directed MPI to closely monitor this project, designed to allow consumers to buy auto insurance online.
In its statement, the PUB clarified that not all vehicles will be subject to the same 5.7% increase. Individual rates will be determined by factors such as driving record, claims history, location, vehicle type, and usage. The Opposition Progressive Conservatives have criticized the NDP government for its management of the public insurer. The PUB has also recommended that MPI appoint an independent expert to study best practices for managing traumatic brain injuries, in comparison to the provider’s current methods. MPI has stated it will comply with the PUB’s orders and recommendations.
