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October 28, 2017 2:44 am

ICBC Looks to Boost Rates

Monday, August 31, 2015 @ 11:47 AM

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.



We need more insurance choices…

guessing the liberals taking over 900 million from ICBC has no impact on this… Another user fee increase to cover clarks incompetance. Things are supposed to be staying the same or dropping with the windfall of money she promised from LNG.. anyone seen a cent yet ??

Perhaps ICBC should be looking at why the injury claims have increased so dramatically. An increase of this magnitude usually indicates something has gone wrong. It would appear that they are accepting claims for more injuries without fully investigating, or more people are claiming for less serious injuries.

Whatever the cause it needs to be investigated before rates are increased.

ICBC has an investment portfolio with a carrying value of $13.5 billion. Yes I said billion. These investments earned them $671 Million dollars in 2013. Not sure what the 2014 earnings would be but it would be similar.

ICBC states that these earnings help keep our premiums down, even when they are announcing a premium increase. They never mention the fact that revenue transfers to the Province is what drives our rates up.

The Province is using ICBC as a form of taxation.

In any event, there is no need for increases in premiums, ICBC have sufficient resources to cover any increases in claims.

This is more about smoke and mirrors than it is about good Government or good management of a Government owned entity.

ICBC can go to hell.. They charge enough as it is and pay out very little.. This is just another money grab for the Gov’t. ICBC should be turned upside down like they did with the Ferry Corporation and find savings within the organisation

Employees at ICBC are highly over compensated for what is accomplished. The clock stikes 4:30pm and no one is ever around, classic government employees. Not saying that a wage reduction would be enough to cover these increased “costs” but it would be something. Side note: the average resident will pay thousands upon thousands and not ever once use their coverage. It’s crap for the majority and a huge benefit for the few. Ah well whats new. Let’s get us some options for how we pay for insurance!

In my few dealings with ICBC over accident claims they always have 2-3 lawyers show up.. even for just examinations of discovery.. how much is spent on lawyers by ICBC… I can see a quick saving of %50 by getting rid of half of the lawyers they have on OUR payroll..

“No new taxes…”

Wait a minute. I seem to remember getting a cheque from ICBC awhile back because they were doing so good they just had to give me that cash back, I think it was just before an election too. Besides, this 10% jump statistically means nothing – it’s a blip, you need to wait at least a second year to see if it’s a trend. A trend needs two data points, you only have one. For all we know some outsourced worker in a foreign land keyed some data in wrong.

That cheque you got was for a over charge on your vehicle insurance.. not everyone got one.. and yes the timing was interesting.. but everything this government does is suspect.

You mean the $100 dollar check everyone who had an insured vehicle got from ICBC in 2000?

I knew I wasn’t going crazy. Found this Vancouver Sun July 3, 2012. “The NDP’s comments about political interference is really laughable given they were the government in their final year, in utter desperation, that sent out $100 rebate cheques that ICBC could ill afford.”

I knew they’d given me $100.00 per vehicle, I just didn’t realize it was that long ago and that it was the NDP that had done it. The one time I try and take a potshot at the Liberals I end up hitting the wrong target.

Anyhow – this is a bit of a conundrum if true. The only way to reduce insurance premiums is to reduce accident costs, which means reducing accidents by getting people to quit running into each other. But if we succeed, ICBC rates still go up to compensate for the dividend paid to the government. If we fail, ICBC doesn’t pay the dividend, our rates go up, and the government increases taxes because they didn’t get the dividend. So probably best we just quit running into each other.

Ski51, another way is to keep the governments grimy little fingers out of ICBC coffers and keep the money to cover increases etc.. The liberals gave out cheques as well.. but guess those dont count ;)

I thought the Liberals did too, but I couldn’t find that one. If you can find it let me know. But PVal, if they do keep there hands out of ICBC, they just stick them in a different pocket. Government always starts with, how much do we want to spend, where will we get it. Taxes, borrowings, dividends from crown corps. So they remove the reward for better driving which is a disincentive to driving safely.

Myself, I wonder why the answer isn’t – raise premiums for bad drivers – even more. They jacked the taxes on smoking to the point where relatively few people smoke compared to 40 years ago, why not try it with insurance. Make bad driving so expensive, that people will get the message.

Interesting side note. I injured myself this summer. I am self employed. My physiotherapist remarked that self-employed people return to work quicker and heal faster than anyone else. He said ICBC patients on the other hand, take much longer to heal, and much longer to return to work. Just part of the problem, I know.

A friend in eastern Canada has the same vehicle as I do, same A+ driving record, he pays ~$750/year for the same insurance as I do for ~$1500+/year. Actually he has better insurance as his company will contest others to the value of a claim, here we have ICBC who won’t even give you a reach around.

If you drive Claim Free all your Life, I don’t know what you are talking about, did you get napped Speeding, Tailgating or what ever then you pay more!

Now how about House Insurance, that’s where the Ripoff really starts ! To many Agents trying to get the last Cent out of you. So full of them selfs, typical Questions have you done any upgrading, what Amperage is your Hydro, do you have a Woodstove, how much Wood you use, your Flooring in the House is what ?
All Idiots! Bloodsucking Sales Men! Please don’t use the Word Broker, they are Sales Men! nothing else! No Love lost on them, to many Years dealing with them.
I found one Outfit they give a Million coverage and don’t ask stupid Questions
and Rates are good too!

Self employed people heal faster… Thanks for the laugh.. If your physiotherapist said that get a new one..

I can see a self employed person returning to work faster, possibly to fast as its their lively hood.. But show me any studies showing self employed “heal” faster…

Doc, you wouldn’t believe it.. I was recovering from a heart transplant so I started my own business so I could heal faster…hehehehe

I think that was his point PVal. Because self-employed people have no safety net to fall back on, they work harder at getting better and will return to work and do whatever they can. Some ICBC claimants are hoping for the big payday in a settlement so they drag it out. I failed to mention he/I were being facetious. Self employed people are not genetically enhanced or superior.

Ski51: I guarantee most of those “healed” self employed workers went back to work still hurt. I had to go back to work too soon after an injury and I’m paying for it….big time.

If the money that is paid to ICBC for insurance stayed with ICBC instead of going into the government’s coffers things would be fine.
The government has used ICBC funds for other things for a long time, though they won’t admit to it, and then ICBC claims they are short of funds.
Gee I wonder why?

Agree 100% racer.

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