Insurance Rates May be on The Rise in Manitoba

Insurance Rates May be on The Rise

WINNIPEG - Insurance rates may be on the rise in Manitoba. MPI said Friday, they requested a 2.2 per cent overall rate increase for 2019/2020

If approved by the Utilities Board, the average passenger vehicle owner will pay about $27 more in premiums per year as a result of the requested increase, or $2.25 per month.

“The overall rate increase is required to maintain the Corporation’s Rate Stabilization Reserve which is used to absorb adverse financial results,” Ben Graham, president and chief executive officer of Manitoba Public Insurance said in a release.

“We fully recognize that our customers expect us to deliver comprehensive auto insurance coverage and service at rates that are affordable, predictable and stable over time. We believe this rate application continues to deliver on that mandate.”

MPI went on to state, over the past five years, collision claim costs have been growing about five per cent annually, compared to the prior long term average of about two to three per cent annually.

Further, MPI said, Manitoba’s weather can have a major influence on the Corporation’s financial results. However, last year there was a significant reduction in vehicle hail claims ─ 2,100 claims filed in 2017, compared to 11,000 and 13,000 in 2016 and 2015, respectively.

TOPICS:   Manitoba News

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