The insurance market in British Columbia is going through turbulent times, with pressure mounting on the Insurance Corporation of BC (ICBC), the provincial public provider. Over the last week, the ICBC was pressured into releasing worrying projections for a 42% increase in premiums by 2020, while it also announced it would no longer insure luxury vehicles in a bid to keep the financial burden off taxpayers.
In other words, the provider is seeking to limit the impact and reduce the amount rates will increase in the coming year. Speaking at a Liberal rally in Kamloops, Premier Christy Clark said that the government can avoid a no-fault private system and keep premiums low by other methods.
“ICBC put out a whole range of scenarios,” commented Clark. “Some of them were alarming for me, as well as I think everyone else, and some of them were pretty good, thinking about a 2% increase.
“I’ve told ICBC, ‘Look, we’ve set a maximum of 4.9% and we are not going to accept anything that goes above that’.”
Clark is urging customers to stay with the public system and not seek out private alternatives or no-fault coverage. She says the government can keep rates reasonable through making reforms and changes like the luxury car insurance decision.