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As it enters a new century - and approaches its fourth decade - Manitoba Public Insurance is much more than a successful insurance company. It's also a strong contributor to the economic and social health of communities across the province, and an innovative business leader. MPI's key commitment is to provide guaranteed access to comprehensive, high-quality vehicle insurance and responsive service at lower rates than the private sector, says Jack Zacharias, MPI's President and Chief Executive Officer. "Our determination to achieve long-term financial stability enables us to propose reduced rates for most Manitoba drivers for the third year in a row," he says. In June 2000, MPI announced its application to the Public Utilities Board to give ratepayers a one-time five per cent dividend beginning March 1, 2001. If this is approved, 77 per cent of all family passenger vehicles would pay less for auto insurance. The Corporation has been able to offer the lowest-cost vehicle insurance in Canada, Zacharias says, because it uses the latest technology and rigorous control measures to reduce the costs of repairs. It has also invested wisely and maintained efficient operations, allowing MPI to return 91 cents of every dollar collected in premiums to Manitobans in the form of accident benefits. In recent years, he adds, it has introduced innovative, customer-focused initiatives - such as online transactions from brokers' offices and flexible payment options - without raising premiums. "Buying Autopac products has never been easier," he says. Offering lower premiums - specifically, lower than private insurers - was one of MPI's key objectives when it was created in 1971. The Corporation was established in response to public concern that private auto insurance was expensive, inconsistent and unfair. Within the private system, not all Manitobans could get auto insurance coverage and those who could found huge gaps in the protection they were sold. Furthermore, when Manitobans were purchasing insurance, the price they paid reflected national claims costs and had little to do with the number of accidents in Manitoba. MPI was created with the goal of providing universal compulsory basic auto insurance to Manitoba drivers. As a self-financing agency, it was also set up to return at least 85 per cent of premium revenues annually in the form of claim benefits to Manitobans who suffer losses and to invest ratepayers' funds primarily within the province. (The interest earned from these investments helps reduce the amount of funds needed from motorists in the form of premiums.) Today, MPI continues to meet these objectives and to honour its commitment to protect Manitobans from the human and economic costs of automobile accidents. Besides comprehensive vehicle coverage, since 1994 the Corporation has provided injury protection coverage (PIPP or Personal Injury Protection Plan), which ensures all victims of vehicle accidents receive the best care and treatment, as well as lifetime guaranteed compensation for financial loss. To make sure Autopac coverage is readily available across Manitoba, MPI works with independent business people in more than 340 Autopac broker offices across the province. As well, six claim centres in Winnipeg, 12 rural offices and regular visits by adjusters to 72 smaller communities help provide superior services to all Manitobans, wherever they may live. The bedrock of the Corporation's future success is financial stability, which rests on prudent fiscal management and, more specifically, the rebuilding of the Rate Stabilization Reserve (RSR), which began in 1996. MPI created the reserve to protect policyholders from rate increases due to unexpected events such as recurring inclement weather. Since the RSR recently reached its target, the Corporation is in a position to provide a one-time surplus dividend next year. Pursuing road safety strategies was another founding objective, which MPI meets through its well-respected RoadWise public education programs. Working closely with community partners, MPI focuses on three key themes: preventing drunk driving, preventing speeding and aggressive driving, and promoting seatbelt use. Recognizing that road safety is an issue for all ages, the Corporation promotes proper use of child car seats, delivers High School Driver Education throughout the province, and recently co-produced a safety guide aimed at senior motorists. Other partnerships that yield important results for MPI are its joint efforts with police services to fight auto-crime such as fraud and theft - measures that saved the Corporation more than $3 million in 1999. MPI is a significant contributor to Manitoba's economy, across all regions, through purchasing vehicle repair and health-care services worth close to $400 million in 1999. It works with trades people and health-care professionals to explore new, cost-effective techniques and promote ongoing research. Within the auto repair sector in particular, the Corporation promotes high technical standards through an international autobody training program. These partnerships have helped MPI keep its average repair cost significantly lower than in other provinces while ensuring that the quality of repairs is second to none. While the province represents four per cent of the national population, MPI standards have ensured that Manitoba accounts for about 52 per cent of the highest standard repair facilities in the country (I-CAR gold standard). Besides meeting its business goals and customer expectations, the Corporation works to enhance the social fabric of Manitoba communities by supporting such events as the 1999 Pan Am Games, the Manitoba Society of Seniors Games, and numerous popular charities. "As a prominent member of the community, MPI takes its social responsibilities very seriously," says Zacharias.
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