ICBC premiums will not change until at least next year


VICTORIA (NEWS 1130) – ICBC will wait 10 months until the end of the fiscal year to assess the impact of COVID-19 and whether the company can offer discounts to customers, Attorney General David said on Thursday Eby.

According to ICBC, more than 100,000 drivers cut their insurance coverage during the pandemic.

A review of the ICBC’s financial situation since the start of the provincial emergency shows that collisions are on the decline, resulting in fewer claims and more than $ 150 million in savings.

However, ICBC’s investments are not stable. If markets continue to decline, the public insurer – with almost no capital reserve to withstand market fluctuations and volatility – could exceed $ 1 billion.

“Part of this has already been seen at the end of ICBC’s 2019-2020 fiscal year, and early indications suggest that the impact could exceed $ 1 billion in 2020-21, according to the duration and extent of the global market downturn, “according to an ICBC version.

However, Eby said that if ICBC had a surplus at the end of the fiscal year, the money will go back to the drivers in one way or another – lower rates, a one-time rebate, or a reduction in losses.

“In the meantime, we are focusing on helping people with deferred payments and the possibility of canceling or changing their insurance more easily, and on setting up improved healthcare coverage.” next year to save an average of $ 400 on their insurance, “Eby told me.

The ICBC examination lasted about six weeks after the provincial emergency was declared for the first time and people were invited to stay at their homes (March 15 to May 2).

It revealed that ICBC opened 46% fewer accident claims (including vehicle damage and personal injury claims) compared to the same period last year, with an average weekly reduction of 7,200 claims.

However, the number of claims is increasing again as more and more vehicles return to British Columbia. roads, according to ICBC.

The review also found that more than 100,000 customers canceled their policies, while 57,500 others or lowered their rate class, resulting in an expected $ 283 million drop in underwritten insurance premiums compared to this. which would normally be received for this period.

“The ICBC, which waived cancellation and replacement fees only during the pandemic, has saved customers about $ 5 million, and we will continue to work with drivers facing financial difficulties,” said Nicolas Jimenez, President and CEO of ICBC.

“We are committed to providing essential services and ensuring the safety of our customers, employees and partners. And given these uncertain times, we have a responsibility to take into account many factors when making long-term decisions that could have a negative impact on ICBC’s bottom line – and clients’ insurance premiums. – in the future.

The ICBC is to implement an average rate reduction of 20 percent in 2021, when there has been no base rate change this year.

ICBC previously canceled cancellation and replacement fees, provided 90-day postponements, and helped customers cancel or change their coverage at no cost.


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