MOTORCYCLE PREMIUMS REDUCED FOR 2012
SOME GREAT NEWS! CMMG’s YEARS OF LOBBYING IS ONCE AGAIN PAYING OFF.
IN ADDITION TO LAST YEARS METHODOLOGY CHANGES AND THE RECENT
45% REBATE, MANITOBA PUBLIC INSURANCE HAS SUBMITTED ITS 2012 GENERAL RATE
APPLICATION AND PROPOSES AN AVERAGE DECREASE OF 10.3% FOR MOTORCYCLES.
THE FOLLOWING IS A COPY OF THE NEWS RELEASE…
6.8 per cent overall average rate decrease proposed by Manitoba Public Insurance
More than 900,000 Manitoba vehicles will have reduced Basic auto insurance premiums next year if the Public Utilities Board approves the latest rate application from Manitoba Public Insurance.
In its general insurance rate application filed with the Public Utilities Board today, Manitoba’s auto insurer proposed an overall average 6.8 per cent decrease in premium revenue for the 2012/13 insurance year.
“Our record of rate stability is unparalleled, having held the line or reduced rates 13 of the last 14 years,” Manitoba Public Insurance’s President and Chief Executive Officer Marilyn McLaren said today.
“This proposed reduction was possible in large part to a reduction in injury claims costs, continued reduced theft costs and enhanced operational efficiency. Recently, an external appointed actuary adjusted the expected future cost of long-term injury claims downward by approximately 20 per cent.
“This adjustment resulted in a surplus of $250 million which was returned to Manitobans. This adjustment in past, long-term claims also impacted future forecasts which is largely responsible for the proposed decreased future revenue requirements.”
If the application is approved by the Public Utilities Board, 905,610 (91 per cent) vehicles receive reductions in their basic compulsory coverage next year, while 69,186 vehicles (7 per cent) will remain the same while 15,660 (2 per cent) policies will be increased. Most increases will be less than $50.
AVERAGE ADJUSTMENTS IN REVENUE
Applied for Rate Changes
|Off Road Vehicles||
|Overall (applied for)||
The proposed rates would be effective March 1, 2012, but because renewal dates are staggered, some vehicle owners wouldn’t pay the new rates until February 28, 2013.
The average premium family passenger vehicles will be $836, down $61 from the 2011/12 rates.
The corporation has requested a 10.3 per cent overall average decrease to motorcycle rates. Motorcycles see a larger average decrease than other vehicles because a greater proportion of their rate is for injury claims. In total, 9,342 motorcycle owners will see a decrease in their premium. Of the motorcycles increasing in rate, most are mopeds which will see their average rate increase from $204 to $249.
Manitoba Public Insurance also released its 2010 Annual Report this week. The report demonstrates the company’s current financial strength and ability to continue to deliver the value Manitobans expect.
Manitoba Public Insurance reported a net loss after surplus distribution of $22.3 million. Investment income of $100.7 million helped reduce the cost of the average Basic Autopac premium by $96. The Basic plan also surpassed its goals by providing claimants with 86 cents in benefits for every $1 in premium – significantly better than the national average – and Basic’s operating costs are 53 per cent of the Canadian industry average.
Manitoba Public Insurance realized these achievements without sacrificing customer service. In 2010, the company met or exceeded corporate-wide customer service standards 96 per cent of the time.
Last year, Manitobans filed an average of 1,079 claims every working day. This represents about $2.3 million in claims every working day.