MPI proposes 6.8% rate decrease for 2012-13, announces net loss of $22.3 million in 2010

Manitoba Public Insurance (MPI), the province’s public auto insurer, proposed an overall average 6.8% decrease in premium revenue for the 2012-13 insurance year. The insurer also issued its 2010 Annual Report, in which MPI reported a net loss after surplus distribution of $22.3 million. Investment income of $100.7 million helped reduce the cost of the average Basic Autopac premium by $96.If the Public Utilities Board approves MPI’s proposed rate application, 905,610 (91%) vehicles would receive reductions in their basic compulsory coverage next year, while 69,186 vehicles (7%) will remain the same while 15,660 (2%) policies will be increased. Most increases will be less than $50.”This proposed reduction was possible in large part to a reduction in injury claims costs, continued reduced theft costs and enhanced operational efficiency,” MPI president and CEO Marilyn McLaren said in a press release. “Recently, an external appointed actuary adjusted the expected future cost of long-term injury claims downward by approximately 20%. This adjustment resulted in a surplus of $250 million, which was returned to Manitobans. “This adjustment in past, long-term claims also impacted future forecasts, which is largely responsible for the proposed decreased future revenue requirements.”The proposed rates would be effective Mar. 1, 2012. But since renewal dates are staggered, some vehicle owners wouldn’t pay the new rates until Feb. 28, 2013.The average premium for family passenger vehicles would be $836.The corporation has requested a 10.3% overall average decrease to motorcycle rates. “Motorcycles see a larger average decrease than other vehicles because a greater proportion of their rate is for injury claims,” the insurer announced.Last year, Manitobans filed an average of 1,079 claims every working day, MPI noted. “This represents about $2.3 million in claims every working day.”