FORT ST. JOHN, B.C. – The government of B.C. has ordered a independent 3rd party review to look at different options and make recommendations that will keep insurance rates affordable.
“We are taking action to keep ICBC’s rate increases affordable for British Columbians. Today, I’ve directed ICBC’s board to commission a third-party review with a goal to produce a range of options for ICBC to increase fairness, affordability and sustainability when it comes to Basic insurance rates,” said Stone. “Our goal with this review is to put British Columbians first and for ICBC to manage its cost pressures, ensuring affordable rates for the long term.”
The government also announced that in the interim, and for the coming year’s rate increase, the Province has issued a directive to the British Columbia Utilities Commission (BCUC) to approve a Basic rate increase of a maximum of 4.9% or less by Jan. 16, 2017.
The BCUC has been reviewing ICBC’s rate application since August 2016.
The government says between mid-2015 to mid-2016, the number of vehicle damage claims increased by 11% and the number of injury claims increased by 14%. At the same time, the average cost of vehicle claims is increasing, rising 17% between 2014 and 2015, as vehicles are becoming more expensive to repair, and injury claim costs are up 60% between 2008 and 2015.