By: Luke Jones, Published on August 15, 2017 07:22 AM, Last Update on August 15, 2017 04:24 AM
The Insurance Corporation of British Columbia (ICBC) is in crisis after a recent report deemed the provincial public provider close to financial ruin. Pressure has been mounting on the insurer to raise auto insurance rates, and the corporation says three specific factors are placing a particular strain.
A leaked EY report was made public in July, sparking concerns among customers. It showed that the ICBC is under financial strain through raising claims costs and collisions. The recommendation was to raise auto insurance premiums by up to 30% to help keep the insurance company buoyant.
While some have said such a rate hike will not happen, alternatives for saving the ailing ICBC are few and far between. The current regime blames the previous liberal government in British Columbia for taking billions of dollars from the ICBC when the company had surplus.
Speaking to the Canadian Press, ICBC spokeswoman Joanna Linsangan says there are three factors that are pressurizing the company into increasing auto rates: more collisions, more damage and claims, and higher costs for paying claims.
To support its assessment, the ICBC release the following data: