The significant external pressures on ICBC’s insurance rates continued to escalate in 2016.
Replicating trends across much of North America, the rapid increase in the number of crashes on B.C. roads continued in 2016, leading to a subsequent increase in the number of vehicle damage and injury claims being reported to ICBC, compounded by higher vehicle repair and injury claims costs. These pressures, which necessitated an increase in basic insurance rates last year, show no signs of easing.
ICBC’s current rates framework limits subsequent rate changes to within 1.5 percentage points of the prior year’s rate change and the current ICBC Service Plan forecasts a 4.9 per cent increase in basic insurance rates for each of the next two years. However, government and ICBC are working on various initiatives to lower those forecasts by alleviating the escalating pressures on auto insurance rates in British Columbia: