'Present gain for future pain': Advocacy group wants MPI to slam breaks on proposed rate increase

A Canadian consumer advocacy group is sounding the alarm over a proposed Autopac rate increase by Manitoba Public Insurance (MPI).

In its 2025/2026 rate application to the Public Utilities Board (PUB), the Crown corporation is seeking a three per cent increase to overall rates.

Consumers' Association of Canada (CAC) Manitoba Director Peggy Barker said that rate is lower than MPI's actuarial recommendation.

"The rate increase we're concerned about because it would seem that we're going to be having present gain for future pain," Barker said.

The non-profit also said MPI is seeking a $10 increase to the driver base premium, which has not been hiked in 27 years. Barker believes this increase is unfair to those who don't own a vehicle or who primarily have a driver's license for identification.

She said the application poses a significant risk for customers and points to issues with poor management at MPI.

"This comes when MPI is in a position of recovering from a big turnover at the executive level, a new board, a 10-week strike that is still influencing the system, so this seems like it's not been well thought out."

Lawyers for CAC Manitoba presented the organization's opposition at a PUB hearing Monday.

An MPI spokesperson told CTV News Winnipeg the general rate application is responding to factors impacting the financial environment, including inflation, rising claims costs, and ongoing economic uncertainty.

“These factors are contributing to MPI departing from requesting a basic insurance rate solely based on accepted actuarial practice (AAP) in its 2025/26 General Rate Application,” the spokesperson said.

“Instead, MPI is requesting a three per cent basic rate increase for the upcoming insurance year in an effort to continue providing affordable rates for Manitobans.”

They noted MPI delivered almost 20 per cent in rate reductions over the past five years, and this year alone, Manitobans are receiving a five per cent decrease – the fifth year in a row that MPI has decreased basic rates.

“MPI firmly believes that three per cent is the right rate request to fulfill its commitment to deliver value for Manitobans.”

The proposed rates would be effective as of April 1, 2025, but because renewal dates are staggered, the Crown corporation notes some vehicle owners won't pay their new rates until March 31, 2026.

Proposed rate increase 'necessary' to address steady, prolonged rise is costs: MPI

In a news release issued last month, MPI President and CEO Satvis Jatana 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 technologies.

The Crown corporation said the trend is persisting across MPI's basic, extension, and special risk extension lines of business.

MPI's total insurance expense last year was $1.7 billion, which is an increase of $334 million, or about 24 per cent compared to the year before.

Additionally, a hailstorm in August of 2023 in Winnipeg was the largest natural catastrophic event in MPI's history, the Crown corporation said, noting there were over 15,000 hail-related claims filed in 2023, resulting in a negative $50 million impact to net income.