Citizen coalition demands action on rising MPI claim costs

A citizen-led coalition in Manitoba is urging the Public Utilities Board to reduce Manitoba Public Insurance (MPI) rates, citing escalating claims costs. During the final days of public hearings, the Consumers Coalition described MPI as "risk-averse" and accused the Crown corporation of using a outdated business model to justify rate increases.

Lawyers for the coalition argue MPI is exploiting cost pressures instead of safeguarding affordability for policyholders. The coalition, comprising the Manitoba branch of the Consumers Association of Canada and the Manitoba Seniors Equity Action Coalition, requests the PUB to act as a watchdog to ensure MPI maintains affordable rates.

During the hearings, MPI’s chief actuary admitted the insurer underestimated reinsurance costs due to the uncertain impact of recent summer storms, which caused nearly 41,000 claims and forced MPI to establish satellite claims centres. The board estimated MPI needs a two percentage point increase beyond its requested rate hike.