Half of Manitoba drivers could see rate decrease for 2024/25 – MPI
Half of Manitoba drivers could see rate decrease for 2024/25 – MPI | Insurance Business Canada
Motor & Fleet
Half of Manitoba drivers could see rate decrease for 2024/25 – MPI
Several product enhancements also proposed
Motor & Fleet
By
Mika Pangilinan
Manitoba Public Insurance (MPI) has submitted its general rate application (GRA) to the Public Utilities Board (PUB), revealing that it seeks no changes in the overall rates for the 2024/25 insurance year.
If the MPI’s rate application is approved, 52% of private passenger class drivers, which comprise two-thirds of all policies, will experience a decrease for the 2024/25 period, according to an MPI official.
However, individual premiums vary based on factors such as the driver’s placement on the driver safety rating (DSR) scale, vehicle type, and use.
The overall indicated rate also means that Manitobans will be seeing “stabilized rates,” the Crown insurer added in a Press release.
“The near-flat overall rate indication proposed for 2024/25 is possible because MPI is in good financial shape overall, and the reserves put aside to address unexpected or unanticipated claims costs are in line with legislated targets,” said Satvir Jatana, vice president and chief customer officer.
“The corporation is moving forward with a renewed focus on fiscal prudence, reducing operating costs in 2024/25 and holding the staff complement at a consistent level.”
According to a release from MPI, its rate request aligns with the requirements set by the Manitoba Government, which had ordered an external organizational review of the insurer following concerns over the rising costs of its IT renewal project.
In addition to maintaining its overall rates, MPI is obligated to provide an accepted actuarial practice (AAP) rate indication, which represents its own projected rates.
Product enhancements also requested
As part of the rate application, MPI also is proposing several product enhancements.
One of the proposed changes is the expansion of the driver safety rating (DSR) system. If approved, the top of the DSR scale will be increased by one increment, granting a 48% vehicle premium discount to drivers at DSR Level +18. Drivers at levels greater than DSR Level +8, which represent Manitoba’s safest drivers, will receive even larger vehicle premium discounts.
MPI is also seeking approval for a new blanket insurance policy framework to regulate Manitoba’s rideshare industry, bringing it in line with other Canadian jurisdictions. The new policy would seamlessly switch between a registered owner policy and a basic blanket policy based on the vehicle’s use, providing dispatchers and drivers with more flexibility and choice.
MPI’s GRA submission also included updates on Project Nova, the IT renewal initiative undergoing an organizational review.
Subsequent releases in 2024 and 2025 will bring visible changes for Manitobans, according to MPI, including the replacement of front-end systems used by brokers and staff to issue products and services, as well as the introduction of online services.
MPI said it is in the final stages of selecting a governance and advisory services vendor to help maintain transparent governance throughout all levels of Project Nova.
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