What’s New: In Brief (January 17, 2008)

The British Columbia Utilities Commission (BCUC) has confirmed a 3.3% increase in rates for basic insurance, the Insurance Corporation of British Columbia reports.
The ICBC filed an application in March 2007 concerning basic insurance rates, which the BCUC approved on an interim basis and implemented on May 1, 2007.
The interim increase in rates for basic insurance was implemented at the same time as an average 3.8% decrease in rates for optional coverage for ICBC customers.
The net effect of rate changes in 2007 was that premiums decreased or stayed roughly the same for more than half of the customers who chose ICBC for their basic and optional coverage, the ICBC notes.
ICBC said the increase is needed primarily because the cost of claims from crashes has continued to increase, particularly for injury claims.

RenaissanceRe Holdings has announced it expects to record two charges affecting its 2007 Q4 results.
One would result in a full reduction of the carried value in ChannelRe, which was US$126.7 million as of Sept. 30, 2007. Another is a US$55-million charge to increase incurred but not reported (IBNR) reserves for sub-prime related exposures in the casualty clash reinsurance book of business, RenaissanceRe reports.
Despite these charges, A.M. Best noted that the financial strength rating of A+ remains unchanged.