The provincial government of British Columbia has put the freeze on the Insurance Corporation of BC’s (ICBC) rate application to the BC Utilities Commission (BCUC).
Attorney general David Eby asked the insurer to delay its rate application until February of next year. The official explained in a statement that the delays are necessary in order to allow more time for two planned reforms to be implemented.
“We will not ask ICBC to put forward a 2020 rate application based on an incomplete financial picture,” Eby explained in a statement issued Thursday, CBC News reported.
“Instead, we will wait until that work is complete to ensure any rate changes are based on the actual costs anticipated in the year ahead.”
Last year, the provincial government introduced limits on the number of expert witnesses testifying in injury lawsuits as a way to help the financially struggling ICBC. However, the Supreme Court recently reversed the cap.
Instead of appealing the decision, the provincial government has opted to put the changes in legislation. The planned changes to BC’s Evidence Act not only limit the number of expert reports, but will also provide judges the discretion to decide whether additional experts are needed in certain cases.
Eby also explained that the province is looking into reforms of the tort system which would lead to reduced costs and an improved rate application process.
“British Columbians are paying too much for car insurance, [and] ... we have much work ahead to get these costs down for families,” the attorney general said.
