Manitoba's state-run insurance corporation, Manitoba Public Insurance (MPI) has had a series of inexplicable gaffes over the years that leave consumers wondering just how great the "low" rates we're paying are.

First there was a hair-brained decision to give $20 million in surplus funds to the province's universities. That idea was swiftly quashed following public outrage. Or how about a $10,000 painting commemorating MPI's 30th anniversary. Finally was the clever scheme to spend $200,000 of motorist's premiums to subsidize bus pass for its staff. It took exposure in the media for MPI to change its tune.

With all of this, MPI repeatedly claims Manitobans pay some of the lowest premiums in the country, especially when compared to the jurisdictions that have opened up the market to competition. But making these claims is one thing, the picture the real numbers paint is another.

A recent report conducted by public policy analyst Mark Milke for the Frontier Centre for Public Policy (www.fcpp.org), shows data used by government-run insurance companies such as ICBC, MPI and SGI to buttress their low-rate claim, is seriously flawed.

Government-run insurance companies use a little trick. Instead of comparing premiums paid, they compare premiums quoted to make public insurance look like a better value. But as Milke point s out, reports and studies on insurance are released without full disclosure or adequate context.

For example, the Consumers' Association of Canada (CAC) claims to estimate insurance costs in each province and then ranks them. However, the CAC simply averages insurance quotes to come up with its insurance cost figure. By only averaging quotes, the broader selection of insurances providers and options in the private sector is eliminated. No indication of actual costs is provided. By Milke's calculations, the CAC 2005 report exaggerated Alberta's average premium by 67.6 percent and Ontario's by 80.7 percent because it used "quotes" and not the actual premiums paid.

How does Manitoba stack up in actual premiums paid for the past six years Premiums were higher on average in Manitoba ($920) than those offered in private sector provinces like Nova Scotia ($842) and Prince Edward Island ($811).

In Alberta, the private sector, not the government, provided auto insurance. Many anecdotal reports shore up the myth that private insurance is more expensive in Alberta. True. But here is what's interesting. According to the data, Manitoba's premiums are steadily on the rise, where in Alberta, rates are coming down. Between 2003 and 2005, the average premium paid in Alberta decreased from $1,141 to $1,022.

To be sure, legal restrictions and regulations in each province affect the cost of providing insurance. But more to the point, why does MPI continue to have a monopoly in Manitoba If the government-run insurance company is so confident in the services and rates provided, they should not be afraid of some competition.