Moving and Address Change News » ICBC gets approval for interim 6.3 per cent rate rise

ICBC gets approval for interim 6.3 per cent rate rise

B.C. Utilities Commission gives green light to insurance grow effective April 1, 2019

The Insurance Corporation of B.C. (ICBC), the province's public auto insurer, has been giving the green light to raise insurance rates by 6.3 per cent.

The B.C. Utilities Commission (BCUC) has approved ICBC's request for an interim basic insurance rate increase effective April 1, 2019.

The insurance corporation applied for the proposed rate hike in December as the B.C. government attempted to address what Attorney General David Eby described as a "financial dumpster fire" at ICBC.

Eby revealed in November that ICBC was set to lose $890 million in 2018-2019, following a $1.3 billion net loss in 2017-18.

  • What's going to cost you more — and less — in B.C. in 2019

According to ICBC, the hike means "an average increase of less than $60 for personal customers' basic insurance coverage."

A BCUC panel will make a final decision as to whether the rate hikes will become permanent.

Effective April

As of April 1, all new and renewal policies will be subject to the rate hike.

According to the public insurer, the temporary approval "will lessen the depletion of ICBC's already low basic insurance capital while the BCUC reviews the full application."

The province has pointed the finger at the previous government for leaving the insurer in financial ruin. Since the start of the 2017 financial year, ICBC is said to have lost more than $2 billion.

In January, Eby warned drastic changes would be necessary.

  • ICBC asks for 6.3% increase to basic insurance rates

According to ICBC, injury claims costs have soared by 43 per cent in just five years, totaling roughly $3.67 billion in 2018 alone.

Reforms rollout

To stem the losses, the province has already rolled out a list of reforms including higher fines for repeat bad drivers, an independent dispute resolution system and a $5,500 limit on payouts for minor injuries.

The BCUC panel has opened the door for public consultations. People who are directly affected by the interim approval can request intervener status.

Comments and opinions can also be submitted online.

 

'Blindsided': B.C. condo residents fearful, as extent of insurance crisis remains unclear

In B.C., 1.5 million people, almost one in three, live in strata condos and townhouses, and many of which have been hit by skyrocketing insurance rates that have left residents in financial distress and worried about their futures.

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