Manitoba Public Insurance has filed its provisional General Rate Application with the Public Utilities Board, requesting approval of a three per cent increase to overall rates for the 2025/26 insurance year.
In a news release, MPI said the proposed rate increase is necessary to address a steady and prolonged rise in the cost of claims as well as the cost of labour, raw materials, and technology across their Basic, Extension, and Special Risk Extension lines of business.
The Corporation’s total insurance expense for the year was $1.7 billion, an increase of $334 million or approximately 24 per cent compared to the previous year.
In addition, they say the August 2023 hailstorm in the Winnipeg area was the largest natural catastrophic event in MPI’s history.
Over 15,000 hail-related claims were filed last year, which resulted in a negative $50 million impact to net income, created significant backlogs and increased the amount the Corporation had to pay out in claims. In the last year, the average cost per claim has risen by over $1,100.
The Public Utility Board normally issues its order in December. The proposed rates would be effective April 1, 2025, but because renewal dates are staggered, some vehicle owners won’t pay their new rates until March 31, 2026.
