ICBC: Affordable and effective auto insurance – A new road forward for British Columbia
July 24, 2017
On December 19, 2016, the Minister responsible for ICBC at the time, Todd Stone, directed ICBC's board of directors to commission a comprehensive, third-party, independent review of the fairness and affordability of basic insurance rates. Ernst & Young conducted the review, independent of ICBC management, and provided the final report, titled "Affordable and effective auto insurance – A new road forward for British Columbia", to ICBC's board on July 10, 2017. The Board then provided the report to government. The new chair of ICBC, appointed on July 20, received the report on July 21. One media outlet was able to obtain a copy of the report last week. Subsequently, at the request of Minister David Eby, ICBC has released the full report which can be read here.
ICBC has only just begun to review the details of the report; however, the significant external pressures on auto insurance rates outlined in the report are consistent with what ICBC has reported to the British Columbia Utilities Commission and communicated to the public over the last few years. These pressures, many of which have been seen throughout the auto insurance industry across North America, include a rapid acceleration in the number of crashes, the number of claims and the cost of those claims.
These pressures are having a major impact on the cost of basic auto insurance and the report provides a range of potential options to keep rates affordable in the long-term. These solutions are complex and require further analysis and discussion. ICBC is looking forward to working with the Board and government on solutions which make sense for British Columbia.