Manitoba’s public insurer says claims costs decreased 27.3 percent in the first quarter of 2021 compared to the previous year.
Manitoba Public Insurance (MPI) says the $ 89.4 million improvement is primarily the result of interest rates on unpaid claims and having fewer vehicles on the road due to COVID-19.
“The first quarter of 2021/22 saw a continuation of the favorable claims experience of 2020/21 with a frequency of collisions occurring at a rate approximately 20% lower than expected,” said Mark Giesbrecht, Vice President and Chief Financial Officer of MPI. in a press release.
In addition, MPI reports $ 115.5 million in net income for the first three months of the year after the distribution of the surplus.
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That’s exactly more than zero the year before, when MPI said that $ 110.1 million of surplus capital was distributed “as financial relief to policyholders during the COVID-19 pandemic.”
During the first three months of 2021, total revenue earned increased by $ 3.3 million over the same period of the previous fiscal year, primarily driven by an increase in special risk extension policies, and offset by a decrease in motor vehicle and driver premiums.
Due to favorable financial positions, MPI notes that it previously requested a 2.8 percent rate decrease in basic insurance premiums for insurance year 2022/23.
It says that about 74 percent of vehicles would see a reduction or no change.
“Due to the ongoing claim reduction, the mandatory automobile commodity continues to raise more revenue than required, prompting MPI to apply to the Public Services Board for a reimbursement for a third customer since the start of the pandemic.” Giesbrecht said.
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