#1October 10, 2023 BENCHMARKING Month, Day, 2023 2024 General Rate Application Ryan Kolaski, Vice President, Chief Financial Officer Manitoba Public Insurance MANITOBA PUBLIC INSURANCE MPI Exhibit #57 1 of 10#2October 10, 2023 2 1 Canadian Vehicle Premium Comparison Agenda 2 Customer Experience 3 Operational Insights Compares vehicle insurance rates across Canada for most passenger vehicles and select driver profiles • Presents rate of average premium growth across Canada • Customer feedback on MPI services Use of Forrester CX Index™ score as overall measure of customer quality and loyalty •⚫ Phone and online surveys to rate customer satisfaction • Crown Benchmarking о Compare to SGI and ICBC AON Benchmarking о New for 2024 GRA о Compare to industry peers Manitoba Public Insurance MPI Exhibit #57 2 of 10#3October 10, 2023 3 Manitoba Public Insurance Customer Experience - MPI Seen to Offer Value Manitoban's continue to support and feel that MPI is delivering on its mission. Proportion who agree or disagree (2022/23: n = 3,343) Agreement scale 1-7 with 1-strongly disagree and 7=strongly agree Exceptional Coverage 27% Exceptional Service 28% Affordable Rates 21% Safer Roads 25% 39% 36% 44% 42% 18% 17% 14% 15% 12% 18% Strong Agree (7) ■Somewhat Agree (5-6) ■Neutral (4) ■Disagree (1-3) 23% 22% MPI Exhibit #57 3 of 10#4October 10, 2023 Manitoba Public Insurance Canadian Passenger Vehicle Premium Trending centage Change since 2 Percent 2002 Manitoba trends favorably relative to its Canadian counter parts; The average increase per year is 1.8%, less than half the Canadian average of 3.2%. 200% 160% 120% 80% *Manitoba: 43.7%, 1.8% per year *Saskatchewan: 49.4%,2.1% per year *British Columbia: 36.6%, 1.6% per year *Ontario: 87.5%, 3.2% per year *Alberta: 173.3%, 5.1% per year *Canada: 89.3%, 3.2% per year 40% 0% 2002 2003 2004 2005 2006 2007 2008 2009 2010 Manitoba Saskatchewan Bristish Columbia Ontario Alberta Canada 2011 2012 Year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4 of 10 MPI Exhibit #57#5October 10, 2023 MPI Exhibit #57 Selected Driver Profile Rate Comparison MPI remains competitive with SGI, and significantly more affordable in comparison to other jurisdictions Among the Lowest Vehicle Rates in Canada in 2023 5 $7,000 $6,500 $6,000 $5,500 $5,000 $5,663 $5,184 $4,500 $2,692 $3,178 $4,000 $1.67377 $1,579 $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $1,596 $1,365 $1,431 $500 0 Vancouver Calgary Regina Manitoba Public Insurance Brandon Winnipeg $1,710 $1,818 $1,275 $1,352 $1,230 $1,307 Toronto $6.795 $5,520 $3,108 21 year old male primary driver, 5 years claims and convictions free, and no secondary driver Average rate of private insurers (Calgary and Toronto quotes): $6,148 40 year old female primary driver, claims and conviction free; secondary 40 year old male driver claims and convictions free; and secondary 16 year-old male claims and conviction free Average rate of private insurers (Calgary and Toronto quotes): $5.342 35-year-old couple, both claims and conviction free Average rate of private insurers (Calgary and Toronto quotes): $2,870 2023 rates based on: • Personal use and commuting to & from work (up to 15 km commute, each way) - Collision and comprehensive deductibles (Manitoba-$750. Saskatchewan-$700, all other locations-$500) • $2 million third party liability - Accident benefits coverage Notes: 1. The 2018 Ford 150 XLT SuperCrew is the most common passenger vehicle registered in Manitoba. 2. Manitobans will pay less for their automobile insurance in 2023 than residents of most major Canadian cities. 5 of 10#6October 10, 2023 6 Manitoba Public Insurance Select Vehicle Rates Comparison ⚫EY has declined participation to undertake comparability reports, we will not to be able to provide this data; Nor does MPI expect to continue the historical practice; 。 Diminishing ability to obtain rate comparisons across the country; Aggregator Companies have shifted to online comparison tools which are restrictive and limit the arability of rates. MPI invites a discussion with PUB regarding a path forward. One such option is for Regulators themselves to collaboratively make rates available within their jurisdictions. MPI Exhibit #57 6 of 10#7October 10, 2023 7 Manitoba Public Insurance Operational Insights - Crown Peers Manitoba's trend in Total Gross Expenses per FTE continue to be lower than our Peer's. Figure BMK-8 2021-22 Comparative Benchmark Report Line SGI MPI Basic No. Performance Measurement Auto Fund Compulsory ICBC 1 Headcount Analysis 2 1. FTEs per $100 Million of Gross Premiums Written 110.0 124.1 93.5 3 2. Mgmt FTEs per $100 Million of Gross Premiums Written 18.4 8.7 10.8 4 3. Staff FTEs per $100 Million of Gross Premiums Written 91.6 115.4 82.7 5 Span of Control Analysis 6 4. Ratio of Staff to Management 5.0 13.2 7.6 7 Premium Metrics 8 5. Total Gross Expenses as a % of Gross Premiums Written 18.8% 14.3% 10.9% 9 6. Average Gross Premiums Written (000's) 1,007,336 1,080,879 3,200,415 10 7. Gross Premiums Written per FTE 908,860 805,519 1,069,685 11 8. Gross Premiums Written Growth 1.9% -6.7% -8.6% 12 9. Net Premiums Written as a % of Gross Premiums Written 97.7% 98.6% 99.9% 13 10. Total Net Expenses as a % of Net Premiums Written 19.3% 14.5% 10.9% 14 Policy Metrics 15 11. Adjusted Policies In Force per FTE 16 12. Total Gross Expenses per Adjusted Policy In Force 862.3 906.9 1,368.4 198.6 126.9 84.9 17 Traffic Safety Measurements 18 13. Total Traffic Safety Expenses (000's) 45,165 10,337 $ 19 14. Total Traffic Safety Expenses as a % of Gross Premiums Written 4.5% 0.9% 31,909 1.0% 20 Other Performance Measurements 21 15. Pure Loss Ratio 76.3% 63.8% 53.7% 22 16. Loss Adjustment Expense Ratio 18.0% 13.2% 8.4% 23 17. Total Gross Expenses per FTE 171,270 115,040 116,118 MPI Exhibit #57 7 of 10#8October 10, 2023 8 Operational Insights - Canadian Auto Benchmark MPI is comparable with our Canadian peers for total operating costs as a percentage of gross premiums at 35.00% verse 36.43%; The AON report amplifies the benefits of the MPI business model relative to our peers, which largely allows MPI to enjoy cost avoidance related to acquisition, advertising, and claims management litigation expenses. This equates to a 9.8% favorable operating variance relative to our Canadian peers, or rather 8.42% for marketing and 1.38% related to avoided claims litigation. Adjusting for this, provides better line of sight of MPI relative to the peer benchmark group. Manitoba Public Insurance Total Gross Expenses as a % of Gross Premiums Written Benchmark Comparisons 26.04% 25.20% 36.43% 39.48% 35.41% Acquisition Manitoba Public Ins Manitoba Public Ins Canada Capada US 2017 2021 Personal Auto Benchmark Industry Benetmark Personal Auto Benstwerk Company Performance to Canada Personal Auto Benchmark Personal Lines Commercial Lines Claims Corporate Support Taxes & Assessments • Total MPI Exhibit #57 8 of 10#9October 10, 2023 Advancing Operational Insights Benchmarking while informative, is challenged to draw actionable items as there are numerous constraints with respect to applicability and accuracy between peers. This effectively stems from a nonhomogeneous peer group, where in: ● Each peer is at a different stage of maturity related to technology and modernizing of their business; • O Each peer has different stakeholders, objectives, markets, regulations, and product offerings; Each peer views outsourcing and self sufficiency of technology enablers differently; 9 • Each peer has different economies of scale; • Each peer's access to, and ability to, attract and retain talent varies considerably; Each peer's price offering has a direct impact and correlation with customer service scores; Price impacts customer expectations; MPI does not currently have resources available to dedicate to researching and reconciling core operating differences of its peers; Nor is there an appetite by peers to assist MPI in this process - It is a one-sided value proposition in MPIs direction. MPI invites a discussion with the PUB to undertake the Operational Benchmarking periodically, removing this issue from the annual application process. Manitoba Public Insurance MPI Exhibit #57 9 of 10#10October 10, 2023 10 10 Manitoba Public Insurance ? Questions MPI Exhibit #57 10 of 10