January 31, 2018 by Staff
The Insurance Bureau of Canada (IBC) is calling on British Columbia to allow private auto insurers to compete with the Insurance Corporation of British Columbia (ICBC).
“Given the significant challenges facing our auto insurance system, British Columbians deserve to be able to choose the auto insurance provider that best meets their needs,” Aaron Sutherland, vice-president of IBC Pacific, said in a statement. “Canada’s private auto insurers are ready and eager to bring choice and savings to B.C. drivers.”
A new report commissioned by IBC—The Benefits of Competition in the Provision of Automobile Insurance in BC—argues that safe drivers in B.C. would save as much as 18% on their car insurance if the market were opened to competition.
IBC also notes that ICBC’s basic insurance rates have increased by more than 42% since 2011, with the average driver in the province now paying $1,680 a year for auto insurance.
On Sunday, ICBC announced it had accumulated $935 million in net losses through the first three quarters of its current fiscal year, and expects to lose $1.3 billion overall. The Crown corporation blamed the losses on more frequent collisions and an increase in repair costs.
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This story was originally published by Canadian Insurance Top Broker.