By: Luke Jones, Published on November 30, 2017 12:06 PM, Last Update on November 30, 2017 09:07 AM
The Insurance Brokers Association of British Columbia (IBABC) along with a provincial minister are pushing for a major review and overhaul of the Insurance Corporation of British Columbia (ICBC).
Over four months ago, a leaked report showed the government monopoly auto insurance provider is losing money. The ICBC cannot be sustained in its current model unless auto premiums increase up to 30%, which would make British Columbia the most expensive insurance market in Canada. Over the months since the report, the government has blamed the previously ruling Liberals for taking out surplus money from the ICBC, while premium rates have increased.
However, there has been no word on any reforms for the public insurance provider, such as new products. Chuck Byrne, executive director of IBABC says the Basic Autoplan coverage “has to be reviewed deeply’. The Basic Autoplan offers third party liability, accident benefits, and uninsured driver protection.
IBABC officials “expect to be consulted in the next four to six weeks on potential changes” to Autoplan, Byrne said, adding the insurer “is in need of corrective action on many fronts.”
In general, “the bulk of Autoplan brokers are keen to see” changes, Bryne added.
David Eby, B.C. Attorney General and overseer of ICBC maintains a position that there are no concrete plans and options remain open. He has previously said he will not allow auto insurance rates to raise by 30% in the province.