Premier Brian Pallister and his government are being accused of interfering with the process of setting Manitoba’s auto insurance rates.
The Consumer’s Association of Canada’s Manitoba branch brought the claim forward during the final day of a hearing regarding MPI’ auto insurance rates for 2020.
The association said that by raising the minimum amount in a reserve fund that’s supposed to protect against unexpected rate shocks, the provincial government is interfering in Pubic Utilities Board’s ability to set rates.
This year, Premier Pallister decided to keep the reserve at around $350 million.
Inflating the reserve account, the association argues, may mean the board feels compelled to hike rates to meet the new minimum reserve amount, and undermines the independent nature of the rate approval process.
