Winnipeg, Manitoba — Auto claims costs are down in Manitoba as the provincial insurer reported a 27.3 percent drop in the first quarter of 2021.
“The first quarter of 2021/22 saw a continuation of the favourable claims experience of 2020/21 with the frequency of collisions occurring at a rate approximately 20 percent lower than generally expected,” said Mark Giesbrecht, v-p and CFO of Manitoba Public Insurance.
The cost reduction takes the form of a $89.4 million savings for MPI.
MPI also reported $115.5 million in net income for the first three months of the year after surplus distribution.
Last year, MPI decided, “as financial relief to policyholders during the COVID-19 pandemic,” to redistribute all $110.1 million of surplus capital, marking 2020 net income as nil.
MPI also said it previously applied for a 2.8 percent rate decrease in basic insurance premiums for the 2022/23 insurance year, which is expected to result in a rate reduction or no change for 74 percent of vehicles.
“Due to the reduction of ongoing claims, the basic compulsory auto product continues to collect more revenue than is required which has led MPI to apply to the Public Utilities Board for a third customer rebate since the onset of the pandemic,” said Giesbrecht.