The Insurance Bureau of Canada (IBC) continues to call for the opening up of British Columbia to auto insurance competition – this time, the bureau asks that the province consider privatizing auto insurance to allow ridesharing services to do business.
“The demand for ridesharing services in BC is clear,” said IBC Pacific vice-president Aaron Sutherland in a statement. “Private Canadian insurers in Alberta, Ontario and Quebec have developed insurance products that cover the risk for ridesharing companies and drivers, ensuring drivers and passengers are protected. If permitted, these insurers could quickly bring these products to British Columbia.”
IBC’s statement comes as Hara Associates released a new report, “Modernizing Taxi Regulation.” The report suggests that BC should move from charging taxis a simple annual premium to a policy that distributes risk assessment and premiums proportionate to kilometers driven commercially – similar to how ridesharing companies authorized in other jurisdictions are insured.
IBC highlighted the report, saying that the ICBC’s inability to create “innovative” auto insurance products for ridesharing companies is a reflection of the insurer’s stubbornness to change. The bureau then reasoned that ICBC’s monopoly over auto insurance in BC “limits choice and hinders innovation,” which could make insurance more affordable in the province.
“Opening BC’s auto insurance marketplace to competition could help facilitate the entry of ride-sharing services in the province,” Sutherland explained. “Competition provides a powerful incentive for any company to deliver innovative products that meet customers evolving needs. Auto insurance is no exception to this rule, and Canada’s private insurers are eager to better serve the BC marketplace.”
