Public insurer makes case for rate increase

Manitoba Public Insurance (MPI) is requesting a 2.07% increase to the overall rates of its universal compulsory auto insurance (Basic) for the 2026/27 insurance year.

MPI filed its general rate application (GRA) with the provincial Public Utilities Board (PUB) on June 25 for the 2026/27 insurance year, which begins Apr. 1, 2026. If approved, Manitoba drivers will see an annual increase of $21 to the average private passenger vehicle policy next year.

PUB normally issues its order in December.

The proposed rate increase reflects cost pressures on the industry. In a press release, MPI notes that auto insurers across North America are dealing with higher claims costs because modern cars are more complex, contain advanced technologies and are more expensive to repair.

“While the market remains volatile and the cost of claims continues to rise, this rate request truly emphasizes MPI’s commitment to keep auto insurance affordable for all Manitobans,” Satvir Jatana, MPI’s president and CEO, says in the release.

The general rate application points to factors such as increased collision repair claims severity and high total loss claims (even though net total loss severity was down 4% from 2023 to 2024, previous years saw double-digit year-over-year increases).

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In the GRA, MPI is also introducing an adjustment to the deductible for the Basic insurance product from $750 to $1,000. The insurer will add a new $750 option to the list of lower deductibles it offers through its Extension line of business, which already includes $200, $300 and $500 options.

It’s also proposing an overall increase of 2% to its Extension line of business, which includes products like rental vehicle insurance, additional third-party liability insurance, and lower deductibles for Basic insurance.

The insurer is applying to PUB to expand the merit side of the Driver Safety Rating scale to include a new level 20. Those who move into this level will save 53% of the cost of their vehicle and driver’s licence insurance in the 2026/27 insurance year.

“This is great news for Manitoba’s safest drivers, and we are proud that this fair and simple system allows us to recognize their contribution towards safer roads through incentives like discounts on insurance premiums,” Jatana says.

If approved, the proposed rates would be effective Apr. 1, 2026. But because renewal dates are staggered, some vehicle owners will not pay their new rates until Mar. 31, 2027.

Jason Contant

Jason has been an award-winning journalist with Canadian Underwriter for more than a decade, including the past three years as associate editor and, before that, as digital editor for seven years.