please help me to write the recommendation part
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Research Report Proposal and Outline for Manitoba Public Insurance
Dharmil Patel
Jordyn Pierce
Fernanda Recabarren
Aidan Ross
Gurman Shoker
Sachini Perera
Jayson Oyibu
Course No: GMGT 2010
Section A02
Dr. Rakesh Mittoo
Due: April 11, 2023
Social responsibility and sustainability allowing the delivery of low-price insurance within Manitoba Public Insurance (MPI).
Purpose Statement: Marketing and Corporate Social Responsibility are very important to a general public insurance company that monopolizes the business of every citizen in its province. The purpose of this report is to research the efforts that Manitoba Public Insurance makes to build its public reputation and sustain an efficient and low-price insurance for Manitobans.
Introduction
Overview of Company
Organizational Structure
MPI is a Crown corporation.
The Board of directors reports to the Minister and Department of Crown Services and Manitoba Legislature.
Over 300 Autopac agents across Manitoba on top of MPI claim and service centres.
Performance measures and targets based on strategic KPIs and balanced scorecard.
Committed to exceptional coverage, excellent customer service and low stable rates.
Advantages and Disadvantages of Public Insurance
The advantages of the monopolization of public insurance and how it benefits Manitobans.
How this keeps auto insurance rates low. Who determines the allocation of rebates (when and how). Anti-theft program.
The effects of Covid-19 on the company in terms of backlog of company resources and recovery of lost time and resources.
Driver testing was shut down in certain locations and limited tests in major cities.
Decrease in claims.
3 Rebates offered during Covid-19
The inability to shop around for prices. Limited control of price increases.
Limits on compensation for the injured or the disabled (relative to other insurance companies in Canada)
Corporate Social Responsibility (CSR) and Sustainability
Corporate Social Responsibility efforts of MPI and initiatives taken towards sustainability.
Responsible for keeping rates low for Manitobans by limiting administrative staff. Ex. increasing online service availability.
Recycling and reselling vehicle parts following a collision.
Promote green transportation and commuting.
Community outreach programs and employee volunteering.
Impacts of the programs listed above.
Conclusion
SWOT analysis
Recommendations (4-6)
Primary Sources:
Interview
Date: XX/02/2023
Interviewee: Employee
On-site visit
Date: XX/02/2023
Location:
Secondary Sources:
Company Website (https://www.mpi.mb.ca/Pages/Home.aspx)
Company Reports
MPI Annual Business Plan 2022/23 (https://www.mpi.mb.ca/Documents/MPIAnnualBusinessPlan2022-23.pdf)
Academic Articles
a. Sustainability. (n.d.). Manitoba Public Insurance. https://www.mpi.mb.ca/pages/sustainability.aspx
b. Swaen, V. (2010, January 15). Corporate Social Responsibility - Lindgreen - 2010 - International Journal of Management Reviews. Wiley Online Library. https://onlinelibrary.wiley.com/doi/abs/10.1111/j.1468-2370.2009.00277.x
c. Spence, A. M. (1975). Monopoly, Quality, and Regulation. The Bell Journal of Economics, 6(2), 417–429. https://doi.org/10.2307/3003237
d. Sheshinski, E. (1976). Price, Quality and Quantity Regulation in Monopoly Situations. Economica, 43(170), 127–137. https://doi.org/10.2307/2553202
Free Press & News
a. Blunt, M. (2022, November 23). Lengthy collision repair wait times as winter driving season gets underway in Manitoba - Winnipeg | Globalnews.ca. Global News. https://globalnews.ca/news/9301444/collision-repair-wait-times-winter-driving-season/
b. Da Silva, D. (2022, December 5). MPI draws map to reduce test wait times. Winnipeg Free Press. https://www.winnipegfreepress.com/breakingnews/2022/12/05/mpi-draws-map-to-reduce-test-wait-times
c. Hayden, B. (2022, August 25). MPI allows road testing on Sunday to close the backlog - Manitoba News. Canada Today. https://canadatoday.news/mb/mpi-allows-road-testing-on-sunday-to-close-the-backlog-16407/
d. Government hopes free anti-theft devices will reduce Winnipeg car thefts. (2006, Apr 07). Canadian Press NewsWire https://uml.idm.oclc.org/login?url=https://www.proquest.com/wire-feeds/government-hopes-free-anti-theft-devices-will/docview/359719472/se-2
Textbook
Thill, J. V., & Bovée Courtland L. (2020). Chapters 11-14. In Excellence in business communication. Pearson.
Report:
Executive summary
As the only company that offers insurance, registration, and licencing to drivers in Manitoba, this paper will present a detailed analysis of Manitoba Public Insurance (MPI). We will analyse MPI's distinctions from private insurance companies, as well as the advantages and disadvantages of their market monopoly in Manitoba, throughout this paper. Their response to the COVID-19 pandemic, the rise in rebates, corporate social responsibility (CSR), and sustainability.
The primary source for this report was an interview over the phone Mir Rizwan, however, we also collected information during an on-site visit to their Barnes street facility.
We provide a thorough SWOT analysis and numerous recommendations for the organization's future as part of our report's conclusion. As we know MPI is a monopoly in the licensing an insurance market, making their whole profits be directed into their business operations, because they don’t have to invest in a lot of advertising to the lack of competition.
(missing 2 line from recommendations)
Date: April 11, 2023
To: Dr. Rakesh Mittoo
From: Dharmil Patel, Jordyn Pierce, Fernanda Recabarren, Aidan Ross, Gurman Shoker, Sachini Perera, Jayson Oyibu, Nabid Rifty.
Subject: A research report on Manitoba Public Insurance (MPI).
Introduction
Manitoba Public Insurance (MPI) is a Crown corporation that provides insurance, registration, and licensing services to drivers in Manitoba. It provides services through its claim and service centres located in 12 communities and 300 Autopac agents spread across manitoba. The Manitoba Public Insurance Corporation was launched on November 1, 1971 to offer mandatory and accessible auto insurance coverage to all drivers in the province (Manitoba Public Insurance, n.d.). MPI is accountable to the Minister and department of Crown Services and cabinet through the board of directors.
MPI strives to provide insurance coverage that is accessible to all, lower premiums compared to private insurers for similar coverage, financial sustainability in the long run, and initiatives aimed at promoting traffic safety and preventing losses. As a public auto insurer it is important to deliver value by fostering a culture of excellence. MPI uses its four fundamental principles to achieve its objectives which are striving for excellence, providing value to Manitobans, doing what’s right and investing in people (MPI, n.d.).
The purpose of the report is to explore the ways in which MPI priortizes marketing and corporate social responsibility to maintain a positive public image and ensure affordable and effective insurance coverage for the people of Manitoba.
Methodology (Fernanda)
Advantages and Disadvantages of Public Insurance
Private versus Public Insurance
Currently, public auto-insurance is available in two Canadian provinces, namely Manitoba and British Columbia. Private auto insurance, on the other hand, is the more prevalent option, with nine provinces and territories following this model. Both models have their advantages and disadvantages, firstly let’s look at the differences between Public and Private auto insurance.
Private auto insurance faces competition from a range of insurance providers that offer competitive rates and enhanced services, such as first-accident forgiveness, replacement cost coverage, and roadside assistance. While these options can provide benefits to policyholders, it can be time-consuming to obtain quotes and find the best policy that meets their needs. In contrast, public auto insurance models do not have any competition, as there is only one provider with fixed rates and deductibles. This allows for easy to understand, one-size fits-all solutions (Armstrong, C. 2016). An advantage within the public sector is that the required vehicle registration is provided in unison with the insurance. A disadvantage of a public auto insurance is that it is a provincial corporation, it is provincially funded through taxpayer dollars (Armstrong, C. 2016). Any excess funds are given back to customers as rebates. Private auto insurance companies contribute to the government through taxes, which is lost in a public insurance system. Merits and demerits are earned in both systems based on an individual’s driving records. High-risk drivers may pay more in private insurance and providers have the ability to deny insurers coverage if they feel they are high risk. A huge benefit in a private insurance company is the competition leading to lower prices. In a public insurance company, rates and prices can be increased with no control and inability to shop around for prices.
Disadvantages of a Monopoly
While the monopoly may have certain advantages to both the business and clients, we cannot ignore the significant disadvantages.
Inflexibility of pricing:
This is one of the major disadvantages of any monopoly. Because the pricing is set by the same organization that delivers the service, there is a strong risk of under-serving a considerable demographic. A monopoly makes it impossible to shop for prices elsewhere if one wishes to explore varied options. This also causes a limit in the control in cases where the prices are increased.
Limits on compensation and Policy:
While MPI provides a decent Insurance, in relation to other private Insurance companies, it falls short in terms of creating options for its clients.
Many times the compensation offered may not fully cover medical bills, lost wages or rehabilitation. Whereas, many private insurance companies offer a wider range of options for claimants and many times this includes health benefits, wage compensation and disability coverage.
The monopoly of MPI also affects the flexibility of policy options for customers in Manitoba.
Impact of COVID 19 on Manitoba Public Insurance
The Covid 19 Pandemic affected the Manitoba Public insurance just like other businesses, creating a significant shift in its operations. Here are some of the impacts of Covid 19 on MPI.
Driver Testing Shut Down in certain areas:
Because of health and safety concerns, MPI in March 2020, shut down driver testing in certain areas like Winnipeg and Brandon.
This led to less drivers on the road and a reduction in claimable revenue for the organisation.
This also resulted in limited testing in major cities, significantly affecting how accessible its service was to the public.
Decrease in Claims:
As a result of fewer drivers on the road, fewer claims were being made to MPI. This caused a significant drop in generated revenue.
Because of the monopoly it operates, this affected both the organisation and the drivers because partnerships with any existing competition to salvage the situation was technically impossible.
Increase in Rebates:
Given the reduced movement, rebates worth 500 Million dollars were offered by MPI. A rebate is a partial refund given to a consumer for overpaying for a service.
This was also triggered by the decrease in claims and reduction of the number of drivers on the road.
The rebates were paid in 3 separate instalments between March 2020 and May 2021.
Rebates
As previously mentioned, any excess funds in a public insurance company are allocated as rebates to customers. A rebate is a refund of a portion of money paid when an individual has overpaid taxes or rates. During the COVID-19 pandemic, Manitoba Public Insurance (MPI) experienced a reduced number of insurance claims, resulting in strong financial results. As a result, MPI distributed three rebates totaling almost $500 million. These rebates were approved by the Public Utilities Board and distributed through MPI.
The effects of Covid-19 on the company in terms of backlog of company resources and recovery of lost time and resources.
Driver testing was shut down in certain locations and limited tests in major cities.
Decrease in claims.
3 Rebates offered during Covid-19
Limits on compensation for the injured or the disabled (relative to other insurance companies in Canada) (Jayson)
Point 2 (Around 3 paragraphs)
Corporate Social Responsibility (CSR) and Sustainability (Gurman and Sachini)
Manitoba Public Insurance as the discussed above is a public automobile insurance company whose prime focus is on providing affordable insurances. While keeping its motto intact, MPI also takes firm steps towards attaining a sustainable environment.
Firstly, by providing affordable insurances it motivates the people to use sustainable methods of transportation. MPI encourages people to use public transport, cycling, waking as alternate method, this result in helping reduce the greenhouse gas emission marginally. Therefore, this has a beneficiary impact on earth creating a more sustainable environment.
Secondly, MPI further offers and promotes safe driving practices which helps reduce the number of accidents on Manitoba’s roads. By doing this it helps reduce the environmental impact of transportation. As accidents cause a spike in the air pollution, fuel consumption and the waste generated.
Thirdly, MPI has introduced several initiatives aimed at reducing the carbon footprint. For example, they have implemented a waste reduction program that helps reduce the waste and create a more sustainable space.
Finally, MPI has also partnered with a few organizations that focus on sustainability. Therefore, even though MPI’s business is to provide insurances it also focuses on creating awareness and providing a more sustainable environment.
Corporate Social Responsibility efforts of MPI and initiatives taken towards sustainability.
Responsible for keeping rates low for Manitobans by limiting administrative staff. Ex. increasing online service availability.
Recycling and reselling vehicle parts following a collision.
Promote green transportation and commuting.
Community outreach programs and employee volunteering.
Impacts of the programs listed above.
Closing
SWOT
MPI has a long-standing history of success in Manitoba, in lieu of their monopoly on automobile insurance within the province. This complete control over the industry has resulted in a strong financial background for MPI, as all profits are directed back into business operations. As a crown corporation, MPI can reinvest these profits to grow and expand their business. However, the absence of competition within the market has also created negative effects and pressures from consumers, evident in the range of complaints and negative feedback received by MPI. This lack of competition has placed MPI under constant scrutiny, particularly during their best and worst moments.
Despite the steady demand for MPI's services and products, the company remains vulnerable to sudden changes in demand, as seen during the Covid-19 pandemic when a backlog of services occurred due to unexpected disruptions. MPI acknowledges the opportunity to learn from this event and better prepare for future demand spikes. However, more errors such as this one could create a buzz among Manitobans who may question why they cannot use private insurance, as is possible in other Canadian provinces.
As with any business, there is always room for improvement, and MPI recognizes this. However, it is sometimes perceived that MPI turns a blind eye to frustrated clients. To address this, MPI can focus on improving customer relations and ensuring that every Manitoban's opinion is heard.
Recommendations (Nabid)
References
Armstrong, C. (2016). Pros and cons: public vs. private car insurance. Economical Insurance. https://www.economical.com/en/blog/economical-blog/july-2016/public-or-private-who-provides-your-car-insurance
https://globalnews.ca/news/8586308/mpi-rebate-manitoba-vehicle-owners/
Thill, J. V., & Bovée Courtland L. (2020). Chapters 11-14. In Excellence in business communication. Pearson.
