KAMLOOPS — Today the Kamloops Chamber of Commerce members heard possible benefits that would follow privatizing auto insurance in B.C
As ICBC works to improve its financial health, calls to bring in competition and open up the insurance market have began.
Speaking to the Chamber today (April 25) was Insurance Bureau of Canada Vice President Aaron Sutherland, who says the bureau backs the idea of privatization.
The presentation he gave follows a number of changes to ICBC over the last year, including a 6.3 per cent increase in basic rates, which went into effect earlier this month.
Earlier this year, Sutherland says the bureau had a consulting firm do a price comparison for different cities around the country.
“They looked at a price a 55-year-old woman would pay who had one accident, driving a Toyota Camry. They got a quote for her and in Kamloops she’s paying about $1455,” he says. “In Medicine Hat, Alberta, a similar sized community to here in Kamloops, she would be paying $458 less for the same level of coverage, for the same vehicle.”
Kamloops Chamber Interim Executive Director Acacia Pangilinan says the presentation aims to bring community and business members up to speed on what that could mean for affordability.
“We had a lot of discussion about both sides. The good, the bad, and the ugly about ICBC, and then the same for the private companies.”
After today’s event, she says the Chamber will be looking at hosting a public forum to bring the rest of the community into discussions.
“Having an opportunity like this where people can learn right directly from the industry what the challenges are, and what some potential solutions are, gives our members a really good education base to then go out and make smart decisions for their own consuming purchases, or for their businesses.”
It’s not just the possibility of lower rates that has the Insurance Bureau advocating for more insurance options, Sutherland says a better product could follow.
“There’s that competitive incentive to make sure that you’re not just delivering the best possible price, but the best possible service. Because if you’re not, your customers are just going to take their business elsewhere.”
B.C is one of four provinces in Canada that does not have private car insurance options, and a survey from the bureau found that 82 per cent of British Columbians would like more choices.
For now, groups pushing for opening up the auto insurance market will have to wait, as BC lawmakers have yet to put any legislation in place.
