Market Overview

ICBC takes a page from private insurers' playbook

Share:

ICBC takes a page from private insurers' playbook

Canada NewsWire

VANCOUVER, Aug. 9, 2018 /CNW/ - Today, the Insurance Corporation of British Columbia (ICBC) announced changes to its premium structure, to make it fairer for drivers in the province.  These changes, which will better align insurance premiums to driver risk, are long overdue and are similar to what private insurers offer places like Alberta, Ontario, and Atlantic Canada.

Insurance Bureau of Canada (CNW Group/Insurance Bureau of Canada)

"Pricing auto insurance based on driver risk is an effective way to incent better behavior on our roads and reward good drivers," said Aaron Sutherland, Vice-President, Pacific, Insurance Bureau of Canada. "This change mirrors the way auto insurance is priced in other provinces.  In these markets competition puts consumers in the drivers' seat – with more choice on the products they buy and who they buy them from.  This is long overdue in BC."

However, to improve the overall affordability of auto insurance in BC, the government needs to open the marketplace to competition and choice, and provide drivers with the freedom to shop around and find savings.  "Competition provides a powerful incentive to ensure that a company is delivering the best product at the best possible price. Auto insurance is no exception to this rule, and Canada's private insurers are eager to better serve the BC marketplace."

An MNP report The Benefits of Competition in the Provision of Automobile Insurance in BC, commissioned by IBC and released in January 2018, demonstrates how a competitive marketplace for auto insurance would reduce premiums in BC. The report shows that drivers in BC could save up to $325 annually if ICBC's monopoly were ended and the market opened to competition.

In a recent poll, 78% of British Columbians said they want more choice in auto insurance. IBC believes that British Columbians deserve to be able to shop around and decide what auto insurance company best meets their coverage needs at the best price.

Additional Resources

About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.

P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 118,000 Canadians, pays $6.7 billion in taxes and has a total premium base of $48 billion.  

For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and @IBC_West or like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC.

If you require more information, IBC spokespeople are available to discuss the details in this media release.

SOURCE Insurance Bureau of Canada

View original content with multimedia: http://www.newswire.ca/en/releases/archive/August2018/09/c8269.html

View Comments and Join the Discussion!