ICBC could benefit from targeted injury treatments
Published: February 22, 2018
Updated: July 24, 2018
Author: Luke Jones
CATEGORY: Car Insurance
British Columbia is continuing to work on ways to fix the broker Insurance Corporation of British Columbia. The latest proposal for the Crown corporation monopoly public auto insurance company could save $27 million per years in claims costs by the risk of legal disputes becoming larger could also be reduced.
In its operational review of ICBC, PwC suggests there is no requirement in the injury tort claims in the province for injured claimants to pursue specific treatments. The PriceWaterhouse report was commissioned for the Ministry of the Attorney General in B.C., the governing body that oversees the ICBC.
“Under tort law, injured customers claim all medical expenses deemed necessary and reasonable,” PwC stated. “Adjusters are not closely involved in designing a plan for the rehabilitation of the customers and focus on settling the claim.”
A 2017 EY report showed ICBC was in financial danger and would need to raise auto insurance rates by 30% just to break even. Since the report, there has been a lot of blaming, but little action. The B.C. government blamed the previous Liberal government for taking billions of dollars from the insurer when there was a surplus.
Attorney General, David Eby, has said premiums will not increase by 30%, but until this week offered no course to rehabilitate the ICBC. The recent confirmation the company lost $935 million over nine months of its fiscal year, which will increase to $1.3 billion next quarter has pressed the urgency of the situation.
Among the ways to secure the future of the ICBC is to create “proactive care planning and recovery programs,” PwC said its review. For example, treatment plans designed for specific injuries, playing a “larger role in the design and adherence to treatment plans.”