Friday , April 23 2021

ICBC applies a 6.3 percent increase in basic insurance rates



Insurance corporation B.C. says that today will submit an application to raise the basic insurance rate by 6.3 percent.

ICBC asks B.C. Utilities Commission for a high average increase after losing $ 1.3 billion in the last fiscal year and forecast a net loss of $ 890 million in this fiscal year.

Attorney General David Ebi has referred to ICBC as a "financial dump of fire" and B.C. the government has worked with the state insurer to implement significant reforms to bring it back.

If an ICBC request is approved, customers will receive a basic insurance rate on April 1, which will increase by an average of $ 60. Criterion design changes approved by BCUC this autumn will not be implemented by September.

"Growth in rates will never be positive, but I believe that the key to this statement is that it is an inspirational sign that we see the positive steps that we make in terms of reform," said Nicolas Jimenez, who was appointed president and CEO of ICBC in July. .

Jimenez said that without reforms, ICBC sought an increase of more than 40 percent, which means that drivers would have to pay an average of $ 360 for basic insurance.

ICBC believes that cost increases are needed because of the rapid increase in accidents over the last five years as well as injuries and vehicle damage.

Attorney General David Ebi has referred to ICBC as a "financial dump of fire".

CHAD HIPOLITO /

CANADA PRESS

Since 2014, the cost of damages has increased by 43 percent to one project totaling $ 3.67 billion only in 2018, while vehicle damage costs, compared to ICBC, increased by 50 percent to $ 1.63 billion in total planned. .

Jimenez said that in September, when standard rate changes are added to the betting design, about 25 percent of customers will see a reduction in the base rate, 42 percent increase from zero to 6.3 percent, and 33 percent increase will exceed 6.3 percent.

"What is the design aspect," said Jimenez. "There are a lot of people who really deserve to pay less than they pay today, and high risk drivers will be asked to pay more. I think it's fully in line with the location of British Columbia."

Basic car insurance category – mandatory for all B.C. drivers – the maximum allowed increase is 7.9 percent.

The maximum increase is determined by the ICBC 's equalization system, which reduces the annual growth by 1.5 percentage points more than the previous year's increase (6.4%).

According to him, selective insurance products will continue to be adapted to remain competitive with the private market.

Eby issued a statement slamming the previous liberal government over the fact that he could not prevent the growth that he described as preventable.

"The previous government was introduced to clear ICBC financial crisis solutions and warned that if it does not work, drivers will suffer consequences," he said. "They not only ignored the warning, but also hid the solutions from the public."

Ebi said that the changes significantly reduce the legal costs associated with minor claims of harm, while at the same time improving the care of people injured in accidents.

"We also carry out the historic modernization of our public car insurer to make insurance rates more equitable for people in BC," he added.

Jimenez said there will still be problems with claims and repair costs.

"These cost pressures remain in the system, so we will continue to work together with the government to look for ways to avoid bigger reforms and save more money, because when we look next year and one year later, we can continue to raise rates to the level of inflation, "he said.

Jimenez said that the reforms are intended to "completely reorient" the system by increasing the amount received by the person by participating in non-financial pain and suffering and focusing more on care.

He said the ICBC, the government and the medical community work together to allow injured people to access expanded care services faster without paying for their pocket costs.

"Part of it is the cost of litigation from the system. Legal costs cover the system too much – it's clear and undeniable," he said. "But the most important part is to get people to recover, and the system is not working so well today as it should be."

The ICBC points out that the average dollar value of the applicants 'lawyers' claims in the last year has increased by 27%, and the average amount spent on experts and expert reports has increased by 20%.

Damaged vehicles are visible at the ICBC Underground Continental Land Rescue Yard in New Westminster on 11 August 2017.

DARRYL DYCK /

CANADA PRESS

The government announced in advance that the ICBC would limit the "pain and suffering" requirements for light car accidents of $ 5,500, which criticized lawyers, healthcare lawyers and rehabilitation companies.

The minors' loss of $ 5,500 is slightly higher than Alberta's $ 5,020 threshold but lower than New Brunswick, Nova Scotia, P.E.I. and Newfoundland. Quebec and Manitoba have full zero-return insurance that eliminates litigation. Saskatchewan has a double system with a maximum of $ 5,000 for alleged offenses.

ICBC approved speed design changes coming into effect in September are intended to move their basic insurance to a "driver-driven model", where accident-related accidents are linked to drivers rather than with vehicle owners. New rebates will be granted to new vehicles with manufacturer's installed automatic braking systems or with less than 5000 kilometers per year.

Insurance customers will have to list all drivers who can use their vehicles. The ICBC will evaluate both the experience of primary and primary drivers and the history of accidents when calculating bonuses and consider the return of all drivers for a decade over a decade by setting bonuses starting from the current three years.

The government claims that inexperienced drivers will have reduced premium rebates to better reflect the risks they are facing.

An increase in bonuses earned by increasing penalty points, reducing traffic tickets, will increase by 20 percent during this fall and by 20 percent more in the fall of 2019.

And people who earn risk premiums for more severe violations like drunkenness and over-speeding are also faced with an increase of 20 percent this year and another 20 percent.

Hereafter.

– with files from Rob Shaw, Jennifer Saltman and Mike Smyth

[email protected]

twitter.com/nickeagland


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