The Insurance Corporation of British Columbia (ICBC) says that three factors are pressuring it to raise its proposed auto rates.
Last month, a leaked EY report suggested that auto rates in BC would have to climb by almost 30% to bail ICBC out of its current fiscal issues.
ICBC spokeswoman Joanna Linsangan told The Canadian Press that the three main factors pushing up insurance rates in the region are more crashes, more damage and injury claims, and higher costs associated with those claims.
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The public insurer shared some data to support its claims:
- On an average day in BC, there are about 875 crashes – resulting in payouts of nearly $13 million in claims. Between 2013 and 2016, the number of vehicular crashes in the region increased by 23%
- Injury payouts spiked 80% over the past seven years. Similarly, vehicle repair costs also increased by 30% between 2014 and 2016.
- BC is the only province without any restrictions on filing lawsuits for vehicle accident claims, which means victims typically receive higher medical benefit and rehab pay-outs – this leads to higher legal costs for ICBC.
- The percentage of claims involving legal representation doubled between 2004 and 2016, from around 25% to over 50%.
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