Auto insurance underwriting losses increase by 77 percent

Manitoba flag auto insurance

In Manitoba, the treacherous winter lead to a notably larger number of vehicle collisions.

Manitoba flag auto insuranceThe compulsory auto insurance carrier in Manitoba, Canada, has now reported that it had experienced underwriting losses of almost $220 million (CAD) within the fiscal year that came to a close at the end of February.

Moreover, the total number of claims that were filed with the insurer rose by 15 percent over the previous year.

The Manitoba Public Insurance Corporation (MPI) has now released its annual report, in which it produce the figures associated with its net claims in 2013 to 2014, which came to $861.1 million. This is an increase from the 2012 to 2013 data, at which time the figures were 15 percent lower, at $746.5 million. Among the direct auto insurance claims that were filed – which includes those amounts that had been yielded to reinsurers – the total came to $866 million in the fiscal year that closed at the end of February 2014.

The severe weather experienced in the Canadian province over the winter sharply increased auto insurance collision claims.

According to Jake Janzen, the chairperson at MPI, “This past winter was an arduous one with severe weather that led to a large number of collision claims.” He explained that the difficult weather and the spike in claims that followed as a result of it, in combination with the “global economic realities”, have all played a role in “an extremely challenging environment in which cost restraint is imperative.”

In 2013 to 2014, the total claims cost was $1.009 billion, which was an increase of 13 percent over the $889.2 million from 2012 to 2013. The insurer is a crown corporation that operates both a car insurance and a discontinued general coverage division. The auto division gives drivers in the province the coverage that they need in order to comply with the universal vehicle coverage requirements that have been nicknamed Autopac. This coverage is compulsory throughout Manitoba.

Aside from standard compulsory auto insurance, MPI also provides Manitobans with forms of extension and special risk coverage. The rates for the basic protection receive the Public Utilities Board of Manitoba’s approval before implementation.

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