Manitoba Public Insurance posts $130M loss, seeks 3% rate hike for 2025-26

Posted on July 5, 2024 by Peggy

Manitoba Public Insurance is requesting permission for a three-per-cent rate hike for 2025-26 fiscal year after the Crown corporation reported a $130-million loss it blamed on ballooning expenses as well as a hailstorm last summer.

The provincial public insurer said Friday it has asked the Public Utilities Board to approve a three-per-cent hike that would be phased in as customers renew their insurance between April 1, 2025, and March 31, 2026.

MPI said the rate hike is required in order to bolster its revenues following an operating loss of $130 million for the 2023-24 fiscal year. The corporation said the main reason for the loss is a $334-million increase in insurance expenses, from $1.38 billion in 2022-23 to $1.72 billion during the most recent year.

MPI said a hailstorm in August 2023 in and around Winnipeg played a large role in the rise in expenses, calling the barrage of hail “the largest natural catastrophic event in MPI’s history.”

MPI said more than 15,000 hail-related claims were filed last year, resulting in approximately $50 million worth of claims.

The Public Utilities Board is expected to consider MPI’s request at a hearing in October and make a decision in December. The board often orders lower-than-requested rate hikes.

MPI CEO Satvir Jatana said in March she expected the corporation to issue another rebate cheque this year. That is no longer on the table, communications director Kristy Rydz said in a statement.