Other steps we've taken
A number of measures are already underway or planned to help relieve the pressure on rates and deal with the rising number of claims.
Review of ICBC’s operations and practices
Government has directed a review focused on finding relief to claims costs. The pressure on insurance rates is not coming from operating costs – in fact, we’ve made significant strides around management staffing numbers and compensation in recent years – including reductions to our executive team and compensation. ICBC's operating costs make up 12 per cent of its total costs. Conducted by PwC, the results of the review are expected in early 2018.
Increasing front-line customer service
ICBC addressed the challenge of the increasing number of injury claims being reported by hiring more than 500 new claims employees from January 2016 to June 2017. Recruitment is ongoing to ensure we can meet customer needs.
Doubling the premiums of luxury vehicles
Owners of luxury vehicles valued at more than $150,000 now pay double for their basic premiums.
Stepping up efforts to combat fraud
ICBC has stepped up its efforts to combat fraud with a new high-tech tool. The fraud analytics tool uses data, algorithms and statistical methods to help identify and target fraudulent claims early in the claims process. ICBC expects its fraud detection and enforcement activities to reduce overall insurance claims costs by $60 million a year by 2021 – savings which will directly help to mitigate the pressure on insurance rates.
Launching a windshield repair program
While vehicle repair costs are largely driven by the industry and manufacturers, ICBC is taking steps to try and do what they can to get some of these costs down. ICBC launched a windshield repair program this year which has already proven to be very popular with British Columbians while also bringing immediate cost savings. Customers who purchase ICBC’s optional comprehensive coverage are now able to have a windshield chip repaired for free and thousands of customers have already taken advantage of this program. Repairs to windshields cost significantly less than windshield replacements and ICBC anticipates the program will help reduce its costs by approximately $8 million per year.