MPI's request to hike insurance cost prompts unexpected question from consumers' group: Is the ask too low?
CBC
The new head of Manitoba Public Insurance says a three-per-cent rate hike for the cost of auto insurance is high enough, even though some of her staff say the Crown corporation should ask motorists for even more.
Satvir Jatana, who was appointed president and CEO of MPI in January, defended the corporation's proposed rate hike as the hearing into its application to increase rates by three per cent began Monday at the Public Utilities Board (PUB) in Winnipeg.
The proposal is also being criticized as potentially too low from an unlikely source: a group advocating for the consumers who'd pay those premiums.
Peggy Barker, a board member with the Manitoba branch of the Consumers' Association of Canada, says the group's pushback is due to the corporation's actuaries expressing in documents to the PUB that a rate hike exceeding six per cent, not three, is needed to recover costs and losses from last year.
The Crown corporation reported a $130-million loss in the 2023-24 fiscal year due to ballooning expenses, stemming in part from a 10-week strike, as well as a hailstorm resulting in more than 15,000 claims.
"Although it may sound attractive," Barker said of a lower rate increase, "we're concerned that it might be short-term gain for long-term pain, just putting off the inevitable and then making [future rate increases] heavier when it does hit" consumers.
Barker said the association looks out for consumers, but it also wants to ensure the long-term health of the Crown corporation.
"When that business is owned by the consumers, as it is in the case of MPI, it's really important that it be well-managed and stable economically," she said.
Despite the opinion of MPI's actuarians, the corporation is forging ahead with the lower rate request of three per cent.
Jatana said in an interview Monday the decision was made in the spring, when MPI was coping with uncertainty around the backlog from last year's strike and the severity of the claims it had yet to review.
There were also worries around inflation, economic circumstances and that ratepayers previously had a few years of rate decreases and rebates, including a five per cent reduction in the 2024-25 fiscal year.
"So for us to be asking for a large increase next year did not deliver on our mandate of being affordable and predictable," Jatana said.
"I remain confident that three per cent is more aligned to what we need."
Her trust has been bolstered in recent months by the clearing of the strike backlog and cost savings from cutting some management jobs.
For years, there has been “glaring inequity” in the way the province has allocated the millions of dollars in its county roads budget, according to Department of Transportation Minister Chuck Chiasson.
Six months after passing a law aimed at making it easier for new grocery stores to open, Manitoba's premier says lower grocery bills could be on the horizon.
Timothy Smith was acting in self-defence when he punched Landon Waddell, and shouldn't be found guilty of manslaughter, his lawyer says.
Thoroughbred horse racing at Vancouver’s Hastings Racecourse is ending after more than a century, with the operator announcing Friday it will no longer run a racing season at the historic facility.
A memorial to remember lives lost to gender-based violence was held in Charlottetown Friday, ahead of the National Day of Remembrance and Action on Violence Against Women, which is marked annually on Dec. 6.
A Calgary dentist who defrauded five insurance companies over a decade should spend up to three years in prison, the prosecution argued Friday.
B.C. Conservation Officer Service says it has called off its search for a bear responsible for an attack on a group of school children in Bella Coola, B.C. on Nov. 20.
The union president called it a rally for solidarity as Iqaluit Housing Authority employees gathered Friday while negotiations are ongoing between the Nunavut Employees Union and the employer.
The federal government is stoking Quebec separatism by walking back its climate commitments — including in its recent deal with Alberta — Liberal MP and former cabinet minister Steven Guilbeault says.
Four more Alberta MLAs are facing recall petitions organized by their constituents, including the first NDP representative to be caught in the province's ongoing wave of recall efforts.
Frank Gehry, the Canadian-born renegade architect behind some of the world's most recognizable buildings, has died at 96.
Hundreds of P.E.I. parents can't find child-care spaces, especially for infants. The provincial government says expanding those spots remains a top priority — and it recognizes the concern.
An Alberta judge says a referendum proposal on Alberta separating from Canada goes against Charter and and Treaty rights, in a decision given less than 24 hours after the provincial government introduced legislation that would have ended the court proceeding.