Thursday , August 18 2022

B.C. drivers to get rid of an additional $ 1.74 billion in ICBC premiums by 2022


Damaged vehicles are seen as the Mainland Animal Animal Ward Ward Corporation, in New Westminster, B.C., on Friday, August 11, 2017.


British drivers will be hit with billions of dollars in higher premiums over the next three years, according to a financial summary released by ICBC.

On Tuesday, the B.C. the government revealed that a Crown auto-insurer would lose $ 1.18 billion in the current financial year (ending March 31) for a profit of $ 148 million by the financial year ending on March 31, 2022.

Finance Minister Carole James has married this projected change as a fortune to savings to come from implementation changes to deliver over the next few months, including $ 400 million a year to change the way ICBC allows Use experts in court cases.

Other major savings items limited small accident claims to $ 5,500 from April 1, and many cases of court cases were taken to a civil decision.

ICBC spokesman Lindsay Williams said the insurer estimates saving $ 1.2 billion a year based on these changes in government.

However, Aaron Sutherland, vice president of the Canadian Bureau Insurance, has highlighted another huge reason. ICBC expects to turn profits in the coming years – premium increases.

According to financial information in the 2019 Service Plan – 2022 ICBC, premiums collected in the current financial year will be $ 5.826 billion. By 2022, ICBC will collect $ 7.569 billion in premiums.

"This is a very big rate increase, to a 25 per cent tone when you're a factor in the growth of drivers," said Sutherland.

The financial document also shows that ICBC expects the costs of claiming to continue to rise, from $ 7.54 billion this financial year to $ 8.24 billion in 2022. Subscription losses will also continue, however, the insurer will predict that an increase in investment income will compensate for that.

"They are expected to compensate for the subscription loss with an increase in investment income," Sutherland said. The statement shows investment income at $ 804 million in 2022 compared to $ 544 million this financial year.

"I do not know what they are investing in, but they expect to return better in the future."

Operating costs are expected to increase from $ 1.23 billion this year, to $ 1.88 billion by 2022.

Sutherland does not make any secret of the reason he has highlighted the incredible premium hikes.

His association wants more competition allowed in the auto insurance market B.C.

"Drivers are asked to pay more and more to try to get ICBC back into solvency," he said. "Why not look elsewhere and look at other Canadian auto insurers and ask them to come to BC? We're paying more in British Columbia than anywhere else in the country, and a big reason for that is who Provide the product here. We have not seen this innovation or efficiency that can bring down a competitive market that costs internal costs. We believe that there is a lot to get looking out of the province and if you open ICBC up to competitive drivers, it could save significantly in the coming years. "

ICBC has a monopoly on basic insurance, however, the optional auto insurance market is competitive.

According to the latest service plan, ICBC intends to change the way that basic insurance premiums are installed "to ensure that they reflect the risk that a driver represents better so that risk drivers it pays the same premiums as high risk drivers. "

Vancouver Sun's political columnist Vaughn Palmer said ICBC was created by the NDP Government in 1973 and the NDP has never shown any interest in the privatization of basic premiums.


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