Transportation Minister Disappointed at Proposed Level of ICBC Rate Increase
Prince George, B.C. – Provincial Minister of Transportation, Todd Stone says the Province has been “working hard with ICBC to identify strategies to keep the 2015 basic insurance increase as low as possible.”
Earlier today, ICBC announced it is applying to the BC Utilities Commission to raise its basic insurance rates by 5.5%
“I am actually disappointed the actual rate increase couldn’t be lower than the 5.5%” says Stone, but recognizes the growing trend of high injury claims, along with fraudulent and exaggerated claims are placing a great deal of pressure on the Insurance Corporation of BC.
He says the increase was trimmed from the initial proposed 6.7% when the Province approved shifting $450 million from its Optional Insurance funds, to its Basic Insurance side of operations.
This is not the first time that such a shift has taken place, Stone says in 2013 Government approved moving $113 million from Optional to Basic. “We will not be able to do this next year ” says Stone, as there likely won’t be sufficient excess capital in the Optional funds to allow such a shift of funds. There is a requirement that the Optional insurance side of business have 145% of what is projected to be needed to cover any claims.