“We believe that consumers should have choice and flexibility when it comes to their insurance,” said Intact Financial president of Canadian operations Louis Gagnon. “We have been closely assessing the optional automobile insurance market in British Columbia for some time and made the decision to shift focus to our other lines of business and providing enhanced services to consumers.”
Both Intact Insurance and belairdirect will stop writing new business on December 01, 2020 and renewals on January 01, 2021.
Intact’s decision comes after the NDP won enough votes to form a majority government during the snap election held over the weekend. One of the NDP’s platforms was an overhaul of the Insurance Corporation of British Columbia (ICBC), which would offer a new mandatory Basic Vehicle Damage coverage similar to the no-fault insurance models of Saskatchewan and Manitoba.
This mandatory insurance plan was criticized by the Insurance Bureau of Canada (IBC), since it would limit consumer choice and make competition in BC’s insurance market more difficult.
While Intact announced its withdrawal from BC’s optional auto insurance coverage, the company is committed to “maintaining a strong presence” in the province, it said in a company release. Intact will continue to offer personal property, commercial P&C, surety and specialty insurance to individuals and businesses in BC through its brands.
