Market Overview

Fraser Institute News Release: ICBC monopoly keeps auto insurance rates high


VANCOUVER, British Columbia, Oct. 29, 2020 (GLOBE NEWSWIRE) -- The Government of British Columbia's ICBC reforms haven't gone far enough and maintain ICBC's monopoly on basic automobile insurance—which keeps rates higher than they otherwise would be, finds a new study released today by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.

"The experience from other jurisdictions in Canada demonstrates how open competitive markets with multiple insurance providers can lower auto insurance rates for drivers," said John Chant, professor emeritus of economics at Simon Fraser University, Fraser Institute senior fellow and author of Reforming BC Auto Insurance to Benefit Consumers.

Currently, the Insurance Corporation of British Columbia (ICBC), a provincial Crown corporation, operates as a monopoly in the province's basic auto insurance market. And auto insurance costs in B.C. are generally among the highest in Canada.

While the B.C. government has introduced reforms in recent years, particularly in light of ICBC's multi-billion-dollar losses, the reforms do nothing to end ICBC's monopoly.

"If the B.C. government wants to help lower auto insurance rates in the province, it should create a level playing field for other providers to compete for clients and let market forces do their work," Chant said.

John Chant, Senior Fellow, Fraser Institute

To arrange media interviews or for more information, please contact:
Mark Hasiuk, 604-688-0221 ext. 517,

Follow the Fraser Institute on Twitter | Like us on Facebook

The Fraser Institute is an independent Canadian public policy research and educational organization with offices in Vancouver, Calgary, Toronto, and Montreal and ties to a global network of think-tanks in 87 countries. Its mission is to improve the quality of life for Canadians, their families and future generations by studying, measuring and broadly communicating the effects of government policies, entrepreneurship and choice on their well-being. To protect the Institute's independence, it does not accept grants from governments or contracts for research. Visit

Primary Logo

View Comments and Join the Discussion!

Latest Ratings

PLTHCanaccord GenuityMaintains6.0
VLDRCraig-HallumInitiates Coverage On23.0
MFACNorthland Capital MarketsInitiates Coverage On15.0
CEREJefferiesInitiates Coverage On18.0
GIIIUBSInitiates Coverage On22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at