Latest news with #Autopac
CTV News
7 days ago
- Automotive
- CTV News
MPI increasing capacity for Driver Z program
Manitoba Public Insurance (MPI) is increasing the number of spots available for its popular high school education program. On Wednesday, the Crown corporation announced it increased capacity for the fall session of Driver Z to nearly 4,700 seats, including 2,126 outside of Winnipeg. This is an increase of 500 spots since the fall 2024 session when it offered 4,200 seats available. MPI noted that this puts it on track for 10,000 seats this year, which will bring it back to pre-pandemic registration levels. MPI added that registration for the Driver Z fall session will begin on July 23 at 8 a.m. The program, which is offered in communities around the province, uses a mix of e-lessons, virtual and in-person classes, and in-car sessions to help students learn to drive safely. MPI will post the Driver Z course finder on July 18 so customers can pre-plan which course works best for them. Parents are also encouraged to complete the first few steps of registration, including setting up the new driver as an MPI customer and purchasing the Driver Z program, before registration day. On the day of registration, parents and guardians can sign up their child for the program at an Autopac broker or MPI service centre, through the MPI Contact Centre at 204-985-7000 or by calling the MPI driver education phone line at 204-985-7199.
Winnipeg Free Press
27-06-2025
- Automotive
- Winnipeg Free Press
On the heels of Project Nova disaster, MPI rate application raises eyebrows
Opinion Is it tough love for bad drivers, or another back-door tax to help pay for Manitoba Public Insurance Corporation's catastrophic, nine-figure technology boondoggle known to the outside world as Project Nova? It's a question that will be difficult to answer for drivers and other informed observers even after studying MPI's latest rate application to the Public Utilities Board, which was made public this week. On the surface, it all seems so reasonable: a 2.07 per cent hike to basic insurance which, if approved, would kick in April 1, 2026, and add roughly $21 a year to the average private vehicle Autopac policy. But dig below the surface and another story appears. Tucked into the fine print of the rate application is a plan to bump the deductible for the basic Autopac coverage to $1,000 from the current level of $750. Autopac customers still have the option to pay a higher premium to get deductibles as low as $200 per claim. However, those drivers who can only afford basic level coverage are going to get hammered by what is in effect a 33 per cent hike on their share of the overall claims cost. That is, in this economy, unreasonable and unacceptable. MPI said the higher deductible was needed to mitigate rising claims costs, stabilize rates and compensate for recent inflation. Without the deductible increase, MPI said it would have had to ask for a five per cent general rate hike. However, this is also about MPI trying to recover some of the wasted money it poured into Project Nova, its ill-fated technology overhaul. After more than three years and a nearly $200-million investment, MPI was forced to abandon the project earlier this year without having achieved any of its major goals. Despite the obvious impact of Nova, it is quite telling that in an 18-page rate application backgrounder, the doomed project was not mentioned once. That is something MPI chief executive officer Satvir Jatana and her board of directors might want to explain. Nova continues to represent one of the most significant sources of pressure on Autopac rates and leaving it out cannot be some sort of inadvertent omission. The same goes for concerns about MPI's operating costs. Intervenors at the PUB have for many years demanded MPI trim its administrative overhead, which went up precipitously during the tenure of former CEO Eric Herbelin, who was fired in May 2023 after an internal performance review. Instead of owning up to its own mismanagement, MPI has decided to use inflation as the crutch for the deductible decision. Inflation has absolutely and dramatically increased the cost of both purchasing, replacing and repairing vehicles. However, inflation is an issue that is largely disappearing into the crown insurer's rear-view mirror. To quantify the impact of inflation, MPI offered calculations based on a five-year average for the increase in vehicle values and repair costs. However, the 2026 rate application seems to be entirely reliant on economic data that is already more than a year old. Inflation started going down in mid-2024 and currently sits at roughly 1.7 per cent, which is well below the peaks during the worst years of the COVID-19 crisis and more in line with pre-pandemic levels. Given this is a rate application taking effect in 2026, it's time to stop leaning on the inflation rates that hit hard in 2021 through to the early months of 2024. It is fair to say that the entire insurance industry has been ravaged by inflation. It's also probably fair to say that insurance companies are likely still trying to recoup some losses from the most volatile years. However, MPI's narrative for this rate application is so carefully crafted, it comes dangerously close to misleading. This is the second year in a row MPI has submitted a rate application that is problematic. Last year, MPI tried to get by with a two per cent rate hike despite the fact that its own actuarial calculations showed it needed a five per cent bump. The PUB ordered them to increase rates and chastised MPI for failing to reconcile the rate ask with its own calculations. This year, the rate application is nothing less than a disingenuous attempt to cover up their own incompetence by taking more money out of the pockets of basic policy owners who have the temerity to file a claim. The NDP government has essentially sat by idly and allowed MPI management to colour outside the lines in ways that don't necessarily serve the public in two consecutive rate applications. In this most recent application, MPI is increasing costs to basic Autopac customers who are already less able to absorb hundreds of dollars in increased deductible fees. Premier Wab Kinew made affordability a key policy of his first year-and-a-half in office. It will be interesting to see if he and his cabinet flag the deductible issue as an unwarranted punishment to basic level Autopac drivers. Not every issue at a crown corporation needs to become a political liability for the government of the day. But this one very well could be if it is ignored any further. Dan LettColumnist Dan Lett is a columnist for the Free Press, providing opinion and commentary on politics in Winnipeg and beyond. Born and raised in Toronto, Dan joined the Free Press in 1986. Read more about Dan. Dan's columns are built on facts and reactions, but offer his personal views through arguments and analysis. The Free Press' editing team reviews Dan's columns before they are posted online or published in print — part of the our tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
Winnipeg Free Press
04-06-2025
- Business
- Winnipeg Free Press
NDP asks auditor general to probe failed IT project at Manitoba Public Insurance
The NDP government has asked the provincial auditor general to probe Project Nova, the doomed technology project undertaken by Manitoba Public Insurance. In a letter to auditor general Tyson Shtykalo, which was obtained by the Free Press, Finance Minister Adrien Sala stated that after spending $165 million on Nova, most of the promised features — including full online access for Autopac customers — remain unfulfilled. Manitoba auditor general Tyson Shtykalo. (File) Manitoba auditor general Tyson Shtykalo. (File) Sala stated in his letter that an internal government review identified a number of 'concerns' about MPI's management of Nova. 'A review by Treasury Board Secretariat identified concerns about the selection of the software and the system integrator, terms of the vendor contract and irregularities in contract practices,' Sala wrote. 'In addition, MPI is expected to continue paying software licences that will not be used in the future years.' If Shtykalo decides to do a deep dive on Nova, he will be examining one of the most costly and controversial projects undertaken by a Crown corporation. First announced in 2020 at a cost of $107 million, Nova was supposed to allow Autopac and commercial customers to renew or amend insurance policies and driver's licences online while providing connections between MPI and repair shops to speed up claims processing. All of these new features, former MPI CEO Eric Herbelin said, would be offered within three years. However, in less than 24 months the cost of the project had risen to $290 million and the timeline was extended to five years. At the same time, concerns arose about costly untendered management contracts and the hiring of hundreds of additional staff in contravention of a government-wide hiring freeze. In the spring of 2023, the board of MPI fired Herbelin after an internal performance review. In March, current CEO Satvir Jatana announced the total price tag to complete Nova had risen to $435 million, or 50 per cent more than the previous estimate. As a result, Jatana said all work on Nova had been terminated. In May, MPI disabled one of the few parts of Nova that had become operational because it wasn't functioning properly. JOHN WOODS / FREE PRESS FILES In March, CEO of Manitoba Public Insurance Satvir Jatana said all work on Nova had been terminated. JOHN WOODS / FREE PRESS FILES In March, CEO of Manitoba Public Insurance Satvir Jatana said all work on Nova had been terminated. Jatana and other senior MPI officials will confirm the audit and discuss its consequences at a media event on Thursday. In the letter, Sala noted the treasury board review concluded that of the $165 million spent to date, only '$46.5 million of value was derived from the project.' The letter did not elaborate on which parts of Nova were up and running. The idea of having the auditor general examine Nova was raised last month by the Consumers' Association of Canada. On May 21, the Manitoba branch of the association wrote to Shtykalo asking that he undertake an audit 'to prevent repetition of past mistakes by MPI and other public institutions and to complement the Public Utilities Board's protection of Manitobans' interests in setting auto insurance rates.' The association had previously criticized MPI for using reserve funds normally dedicated to lowering Autopac rates to help pay for Nova cost overruns. The request for a full audit was made under Section 16 of the Auditor General Act, which states that the auditor general may, by request from the minister of finance or lieutenant governor in council, 'examine and audit the accounts of a government organization, recipient of public money or other person or entity that in any way receives, pays or accounts for public money.' The act says the auditor general 'is not obliged to do so if he or she is of the opinion that it would interfere with the primary responsibilities of the auditor general.' If an audit is undertaken, findings will be reported to the minister who requested the review and to the minister responsible for 'any government organization concerned.' If the auditor finds it to be in the public interest, a report can be submitted to the legislative assembly no later than 14 days after it is provided to the minister responsible for the government entity. The office of the auditor general not only reviews government financial accounts on an annual basis, it is also empowered to examine the finances and operations of any entity operated and funded by the province. Although unusual, it is not unprecedented for the auditor general to delve into the activities of a government entity or Crown corporation at the request of a government minister or MLA. In 2021, Shtayko investigated allegations made by the NDP, which was in opposition at the time, that former premier Brian Pallister had interfered with the management of Manitoba Hydro. However, no report was produced from that probe. Dan LettColumnist Dan Lett is a columnist for the Free Press, providing opinion and commentary on politics in Winnipeg and beyond. Born and raised in Toronto, Dan joined the Free Press in 1986. Read more about Dan. Dan's columns are built on facts and reactions, but offer his personal views through arguments and analysis. The Free Press' editing team reviews Dan's columns before they are posted online or published in print — part of the our tradition, since 1872, of producing reliable independent journalism. Read more about Free Press's history and mandate, and learn how our newsroom operates. Our newsroom depends on a growing audience of readers to power our journalism. If you are not a paid reader, please consider becoming a subscriber. Our newsroom depends on its audience of readers to power our journalism. Thank you for your support.
CTV News
13-05-2025
- Automotive
- CTV News
MPI to offer shorter version of high school driving education program
Manitoba Public Insurance is improving access to its popular Driver Z program by offering condensed courses this summer. Driver Z is a high school education program that uses a combination lessons, virtual and in-person classes, and in-car sessions to help students learn to drive and prevent collisions when they get behind the wheel. On Monday, the Crown corporation announced that the regular 12-week course will be offered in a five-week option this July and August. The condensed program will involve two weeks of virtual classes and three-weeks of in-car learning. Students must attend all classes with no exception, MPI said. In July, the shortened courses will be offered in Arborg, Beausejour, Brandon, Portage la Prairie, Steinbach, Winkler and Winnipeg. In August, they will be offered in Brandon, Steinbach, The Pas, Winkler and Winnipeg. Registration begins on May 28 at 8 a.m. To sign up, students should visit an Autopac agent or MPI Service Centre in advance to get set up as a customer and buy the Driver Z service. Completing this step will help students register more quickly once courses become available. More information on the program and registration can be found online.
