The Manitoba Government and General Employees Union

Responding to Our Needs

Supporters of privatization often make false claims about how government run services could be more efficiently and effectively run by the private sector. But when it comes to car insurance, the reality is, the private sector simply isn’t more efficient.

In fact, one of the main reasons for the creation of MPI in 1971 was to avoid the excessive duplication of administrative costs that were inherent with the private system. At that time, it was also determined that changes to insurance could be done more easily with only one agency involved, allowing the company to be more responsive to public reaction and needs.

This point was never more apparent than a few years ago when the auto theft problem in Winnipeg hit its peak. Aside from the public safety concerns, it was costing ratepayers, so MPI began implementing anti-auto-theft initiatives.

From 2004 to 2009, auto thefts in the province dropped by 75 percent. Combined, total and attempted thefts came down to their lowest levels in the province since 1992*. The success of the program is attributed to two initiatives: the Winnipeg Auto Theft Suppression Strategy and the immobilizer program.

No private insurance company would have had the political ability or capacity to put such a dramatic dent in Winnipeg’s auto theft problem in just five years.

*MPI 2009 Annual Report