Manitoba Public Insurance has requested a rate decrease of 0.6% in an amendment to its 2020-21 General Rate Application filed with the Public Utilities Board.
If approved, about 610,000 passenger vehicle owners will pay about $10 less in premiums per year.
MPI originally requested a 0.1% rate increase in June, but due to favourable financial results as of the end of September, the Corporation filed the amendment October 4th, requesting an overall rate decrease for the first time since 2012.
MPI says some key factors contributing to the rate reduction include its commitment to cutting operating expenses while improving its claims management process. MPI has also achieved its 100% Minimum Capital Test target - the minimum amount the company should hold in reserves to protect against rate shock and ensure rates remain stable.
“With such positive financial results, it would be inappropriate to ask for a rate increase, although it was nominal to request in the first place,” said Ben Graham, President and CEO, Manitoba Public Insurance. “As we continue to execute our operational strategy, MPI is dedicated to maintaining stable and predictable rates which remain among the most affordable in Canada while providing exceptional coverage to Manitobans.
The proposed rates would be effective March 1, 2020, but because renewal dates are staggered, some vehicle owners won’t pay their new rates until February 28, 2021.