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Manitoba Public Insurance wants a rate increase worth more than $27 million to its operations.

The Crown auto insurer says in documents filed at the Public Utilities Board in advance of Wednesday’s hearing that it needs 1% of its requested overall 3.4% increase to build up its piggy bank to prevent drivers from rate shock in future years.

Read: Ontario auto insurance rate cut behind schedule

MPI calls it the rate stabilization reserve, and the corporation’s president and CEO Dan Guimond said in pre-filed testimony that the reserve is forecast to drop to about $62 million by February.

MPI says the minimum amount should be $194 million.

MPI has said the main reason for the rate request was the high number of fender benders last winter due to poor driving conditions and the higher cost of fixing damaged newer vehicles.

Claims costs jumped 13.5% from the year before due to winter crashes.

Also read:

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Leverage insurance policies for yield

Originally published on Advisor.ca

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