Independent Regulator to Set ICBC Rates

The “Insurance Corporation Amendment Act”, which was recently introduced by British Columbia’s legislature will see the creation of a new body that will set price rate controls for crown insurer, the Insurance Corp. of B.C. (ICBC) on basic auto insurance.

“The new structure takes politics out of ICBC rate-setting and ensures open, transparent and independently regulated rates for basic auto insurance,” says finance minister Gary Collins. The move responds to insurer lobbying, with private insurers saying that greater competition on optional covers is only possible if ICBC’s optional covers are not subsidized by its basic auto program. The B.C. Utilities Commission will set rates as of January 2004, rather than the provincial cabinet, if the legislation is passed.