MPI seeks 1% overall reduction in rates

Manitoba Public Insurance (MPI) is seeking a 1% overall reduction in Autopac rates for 2009-10, based in part on declining auto theft rates.
In its application filed with the Public Utilities Board, MPI said the rate decrease is possible because of dramatically fewer auto thefts, and in spite of lower investment returns and higher expenses for the public insurer.
In Manitoba, vehicle thefts have fallen by 40% since 2004, MPI notes in a press release. This is expected to decrease another 40% by the end of 2009.
For the first five months of 2008, auto theft was down 43.9% in Winnipeg and 40.7% in the province overall.
“Over 300,000 vehicles in the province now have approved immobilizers, and Manitobans are beginning to reap the financial benefits,” Marilyn McLaren, president and CEO of MPI, said in the release.
The drop in claims costs is helping to offset financial pressures arising from slow investment markets and rising reinsurance costs, MPI says.
MPI says its reinsurance costs have increased by roughly Cdn$1 million per year, as the public insurer continues to increase its level of protection for large catastrophic losses such as the hailstorm in Dauphin.
Manitoba customers can expect to see their basic auto premiums change by less than Cdn$20, either up or down, with the average passenger vehicle premium being Cdn$853.