Image Credit: CFJC Today

By Dylana Kneeshaw

ICBC

BC government climbing toward financial stability at ICBC while looking through cost-saving solutions

Nov 1, 2019 | 10:20 AM

KAMLOOPS — ICBC is riding a slippery slope of deficits. While the BC government considers potential cost-saving solutions, the minister responsible for the Crown corporation says progress is being made in reducing losses.

The Insurance Corporation has faced consecutive years of billion-dollar losses, including $1.5 billion this past fiscal year.

However, while in Kamloops Friday (Nov. 1), BC’s Attorney General, David Eby, says change is coming.

“Fortunately, in this first quarter, we’re seeing for the first time, ICBC taking in enough premium to cover costs, and reporting a break-even year following reforms we did in the court system.”

In an effort to cut costs, the BC government recently tried to limit the number of medical experts who can testify during court proceedings. However, the BC Supreme Court halted the decision, calling it unconstitutional.

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When asked whether an appeal will be filed, Eby tells CFJC Today the government hasn’t decided which direction it will go.

“We have 30 days to make a decision about that. It’s a very significant decision for us. It amounts to about a $400 million one-time hit to the bottom line for government.”

Image Credit: CFJC Today

Opening up the market to private insurance corporations has been discussed as a way to lower rates for drivers, but according to the Attorney General, privatizing auto insurance in BC would be more costly for young drivers.

“The private insurers released a report that said, for drivers under the age of 35, they would see a minimum 18 per cent increase overnight,” he says. “That doesn’t really feel like a solution for me if it’s going to increase rates for people under the age of 35 by an 18 per cent minimum, and by 30 per cent for the youngest drivers.”

Eby adds that a no-fault insurance system is not currently a solution focus for the government, but the province is looking at different ways to prevent further financial bleeding at ICBC.