The Insurance Bureau of Canada has released a report calling for the privatization of B.C.'s auto insurance market
February 1, 2018
By Gideon Scanlon
Vancouver, British Columbia — February 1, 2018 — In response to news that B.C.’s public auto insurer ended 2017 with a $1.3 billion loss, the Insurance Bureau of Canada (IBC) has released a report calling for more privatization in the B.C. auto insurance business – effectively calling for an end to the province’s B.C.’s Insurance Corporation.
Pointing to the fact that British Columbians pay higher insurance premiums than Canadians from any other province, the Benefits of Competition in the Provision of Automobile Insurance in B.C. shows that economic figures showing that a more open market would lower premiums by as much as eighteen percent – and that figure does not take into consideration any savings made by bundling home and auto insurance – which, the report suggests, could save the province’s penny pinchers a further $85 to $225 annually.
With the governing New Democrats reliant on the support of the Green Party to remain in power, it is unclear if the how the government will deal with the crisis at ICBC, or if they will be able to make any moves towards privatization whatsoever. If they do, B.C.’s collision repair facilities may soon dealing with claims with dozens of insurers – insurers with a closer eye on their bottom line than the beleaguered public insurer.
