August 10, 2018 by Staff
The Insurance Bureau of Canada (IBC) says the B.C. government’s recently announced changes to its auto insurance system will better align premiums with driver risk, but argues the province should go a step further and allow private insurers to enter the market.
In a press release issued Thursday, IBC noted that the new ICBC model would be similar to what private insurers offer in Alberta, Ontario and Atlantic Canada.
“In these markets competition puts consumers in the drivers’ seat – with more choice on the products they buy and who they buy them from,” said Aaron Sutherland, vice-president, Pacific, IBC. “This is long overdue in B.C.”
Earlier this year, IBC released a report that found opening B.C.’s auto insurance market to competition would save drivers up to $325 annually. A recent poll found that 78% of British Columbians want more choice in auto insurance.
“Competition provides a powerful incentive to ensure that a company is delivering the best product at the best possible price,” Sutherland said. “Auto insurance is no exception to this rule, and Canada’s private insurers are eager to better serve the B.C. marketplace.”
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This story was originally published by Canadian Insurance Top Broker.