Manitoba Public Insurance reports surge in claims costs
Manitoba Public Insurance reports surge in claims costs | Insurance Business Canada
Insurance News
Manitoba Public Insurance reports surge in claims costs
Overall net income falls below target
Insurance News
By
Mika Pangilinan
Manitoba Public Insurance (MPI) saw its claims costs surge to $1.2 billion during the 2022-23 fiscal year, an increase by $164.6 million from the year prior.
MPI said the spike driven by inflation, rising labour rates, supply chain issues, and the higher prices of used vehicles.
In its annual report, the Crown corporation said it covered 264,102 injuries, collisions, and write-offs during this period, a rise of 2.1% compared to the previous year.
Despite these challenges, MPI board chair Ward Keith said the insurer remains in a strong financial position to continue providing affordable auto insurance for Manitobans.
“The positive financial results were achieved despite inflationary pressures that impacted both claim costs and corporate expenses, [reflecting] the strength and effective management of the corporation’s lines of business,” he said.
MPI’s overall net income sat at $4.2 million, which fell below its target of $28.1 million. Its total net premiums earned rose to $1.44 billion from $1.42 billion in 2021-22.
MPI also reported a corporate loss ratio of 72.3% from 62.2% in the previous year.
It posted a total of $314.7 million for all non-claims related expenses, with $31 million going to corporate operations.
MPI’s corporate expenses accounted for 24.9% of total expenses and was attributed to costs associated with the modernization program, Project Nova, as well as employee salaries and services aimed at supporting ongoing improvements.
“The corporation’s focus remains on fiscal prudence to maintain and control costs, which ultimately contributes to lower vehicle insurance rates for Manitobans,” said Keith.
“I also want to recognize the commitment of MPI’s current executive team, and the hard work and dedication of all MPI employees who strive to provide exceptional service and value to Manitobans through the public insurance program.”
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