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Manitoba Public Insurance today filed its Basic Autopac rate application for the 2008/09 insurance year with the Public Utilities Board (PUB) for approval.
- The rates take effect March 1, 2008 but because of staggered renewals, some Manitobans will not start paying these rates until February 28, 2009.
- The PUB will rule on the proposed rates after public hearings in October 2007.
- Today’s rate application proposes:
- No overall increase in premium revenue for 2008/09.
- 2006/07 policy holders will share in a 7.5 per cent rebate worth $49.1 million – about $90 for the average vehicle.
- As always, the corporation will file the most up to date financial and forecasting information with the public regulator for monitoring purposes.
- The original application can be modified or a hearing can be called if, in the PUB’s estimation, there has been a substantial change in circumstances.
- This rate application stretches the corporation’s rate stability beyond a decade. In 10 years, the corporation will have held the line or reduced auto insurance rates 9 times.
- If the new rates are approved, 480,283 vehicle owners will see their premiums decrease or stay the same in 2008.
- Overall, 46.6 per cent of Manitobans will pay less.
- Premiums will reduce by more than $20 for 22.9 per cent of vehicle owners.
- Premiums will reduce by between $1 and $20 for 23.7 per cent of vehicle owners.
- Premiums will remain unchanged for 7.8 per cent of vehicle owners (69,167 vehicles).
- Premiums will increase for about 45.5 per cent of vehicle owners (401,223 vehicles)
- Premiums will increase by $20 or more for 27.6 per cent of vehicle owners.
- Premiums will increase between $1 and $20 for 19 per cent of vehicle owners.
- As always, the rate individuals pay for insurance is determined by their driving records, the kind of vehicle (make, model and year) they drive, what the vehicle is used for and where they live.
- In any given year, an individual rate may increase, decrease or remain the same based on the actual claims experience associated with these rating factor
- Attached charts show the effect of the new rates on all Manitoba vehicles, on one vehicle across the five territories, and on four vehicles across the five territories.
Family passenger vehicles
- The average rate for a private passenger vehicle will be $833.
Highlights
Annual Report
For year ending February 28, 2007
Manitoba Public Insurance’s 2006/07 annual report focuses on how the corporation is positioning itself today to perform better and provide more value to Manitobans in the future.
- Manitoba Public Insurance reported net income from annual operations of $68.4 million, thanks to a strong economy and investment revenue.
- This was reduced to $8.7 million after the corporation provided customers with a $59.7 million premium rebate.
- In all other respects, operations performed as expected.
- Manitoba Public Insurance reported 269,135 claims last year, an increase of 16,055 claims from 2005/06.
- Claims incurred increased to $628.4 million – a 1.9 per cent increase from $616.6 million the previous year – because claims were more severe.
- The corporation paid out 97 cents of every premium dollar to Manitobans in the form of claims benefits.
- This is significantly better than the Canadian industry average of 65 to 70 cents of every $1
- Corporate operating costs remained at about 50 per cent of the Canadian industry average.
- Last year Manitobans filed an average of 1,077 claims every working day.
- This represents payments of about $2.4 million every day
- Investment income in 2006/07 was $120.8 million, which reduced the cost of the average premium by $127.
- The Basic Autopac Rate Stabilization Reserve (RSR) is $128.1 million as of Feb. 28, 2007. That is down from $136.1 million last year.
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