Manitoba drivers are projected to see auto insurance premiums drop by an average of 8.8 per cent in the coming months.
In early December 2020, the Public Utilities Board (PUB) approved MPI’s request, which averages out to a savings of more than $100 per policyholder. Manitoba Public Insurance (MPI) stated that it can deliver savings because the Crown corporation met its capital target — the minimum amount the company should hold in reserve to protect against market volatility. The corporation had begun turning over more money to ratepayers last year. MPI has received approval from PUB for a second round of rebates due to the plummeting number of claims during the pandemic.
The new agreement reached by MPI and the Insurance Brokers Association of Manitoba (IBAM) over the future of online sales, will keep auto insurance sales in the hands of private brokers, even in online transactions.
The decision settles a long-running feud between MPI and IBAM over the future of online sales. MPI had questioned whether brokers should still be involved in every transaction, while IBAM said the role of its members in the insurance process shouldn’t be sidelined.
The five-year agreement will take effect in April of this year, said MPI expects additional online transactions on or about April 2023. A spokesperson said online renewal will generally be offered to all passenger vehicle owners, except those with a history of defaulting on their payments.
