ICBC Looks to Boost Rates
ICBC chart of crashes vs injury claims – courtesy ICBC
Prince George, B.C. – ICBC is going to start the process to increase its basic insurance rates.
ICBC says the number and cost of injury claims are the driving force behind the need to boost rates. According to ICBC there were 7,000 more injury claims over the past 12 months, compared to the same period a year ago.
ICBC President and CEO Mark Blucher says if it were to file an application today “We would need to ask for a 6.7 per cent increase in basic insurance rates, in large part due to the unexpected and rapid escalation in the number of injury claims being reported to us in recent months.” He adds that ICBC will “Work alongside government over the next few weeks to help identify and examine steps we can take to lower the required rate increase.”
While the actual amount of the proposed basic rate change won’t be known until after ICBC works with the Government on the matter, the proposal will be filed by the end of October.
In a release issued today, ICBC says the lower interest rates in Canada are also adding pressure on insurance rates, “Going forward, ICBC’s investment income – which helps reduce the amount customers have to pay for their auto insurance – will be negatively impacted by the Bank of Canada’s interest rate cuts as the premiums paid by customers are invested at a lower market interest rate” reads the release.