ICBC rates to increase 6.4 per cent

BC attorney general to announce 'immediate' action for financially beleaguered ICBC
ICBC seeks 6.4% basic rate increase after losing $500M last year
Author

06 September, 2017

Without significant changes, Ernst & Young projected its costs would exceed the amount collected in premiums by over $1 billion within a couple years.

What needs to happen to keep ICBC from collapsing? .

Eby says the previous Liberal government had a "cavalier and reckless" attitude toward ICBC's finances and failed to take action when things began to spiral out of control. "That loss is the largest annual loss in ICBC's history".

In a statement, Liberal MLA Andrew Wilkinson said the real reason for the financial problems was a surge in claims and said the NDP was offering no solutions beyond those in the Ernst & Young report his government commissioned.

"Individual policy rates will depend on the age of the vehicle, value and use of a vehicle, and where it is being driven".

The average B.C. driver will pay $130 more annually for vehicle insurance, thanks to a blended rate increase of 8% being approved by the B.C. government.

The higher rates follow a recent report from Ernst & Young that said the Crown corporation's finances were in serious trouble and rates would need to increase 30 per cent by 2019 to cover costs.

Eby said ICBC will go before the B.C. Utilities Commission this year to seek a 6.4 percent increase to basic premiums and increase overall optional insurance rates by 9.6 percent, for a blended average rate increase of eight percent.

"ICBC is one of British Columbia's most important assets".

Red light cameras already at intersections will be active 12 hours a day, then 24 hours a day, up from the current six hours. "Our aim is to restrict high-risk drivers from using cell phones".

"The revised projection for next year's losses...is nearly half a billion dollars", Eby said.

On Tuesday, Eby announced a series of short-term measures the government will implement to improve ICBC's operations and reduce accident rates.

"I concur with the Attorney General's statement that ICBC's abysmal financial standing is due to the unwillingness of the previous government to make tough choices", Weaver said.

McCandless said the NDP weren't the ones who put ICBC in its current financial state.

He thinks the BC Liberals should look in the mirror. Basic rates have always been subsidized by money from the optional coverage side, however the optional insurance business has been dwindling and actually suffered a loss in the 2016/17 fiscal year. "But open it up to competition on the other side so we can get lower insurance rate for drivers".

"The way we identified these specific initiatives was to ensure we could, as quickly as possible, begin bending those cost curves by making B.C. roads safer, but also by identifying opportunities for savings within ICBC to get those costs down and, as a result, keep rates affordable for British Columbians", Eby said.

Between 2011 and 2015, B.C. had the second highest percentage increase in rates behind Saskatchewan, she added.


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