With auto insurance in British Columbia set to rise by 6.3% in April, an executive at the Insurance Bureau of Canada (IBC) is calling for the entry of private insurers to compete with public auto insurer, the Insurance Corporation of British Columbia (ICBC).
The British Columbia Utilities board approved the ICBC’s request to raise auto insurance rates in the province earlier this month, citing projected losses of $890 million in 2018. But IBC’s Pacific Vice President Aaron Sutherland thinks B.C. car owners shouldn’t have to be saddled with the extra expense. Sutherland said that the entry of private insurers would give consumers a better range of products at lower prices.
“It’s a pretty simple solution, other Canadian insurance companies just need approval to operate here in British Columbia,” Sutherland told local site Castanet.net.
“We believe British Columbians should be able to shop around like they do in virtually every other aspect of their lives, to find the best product at the best price that best suits their needs. We can’t do that here in B.C.”
Sutherland thinks the key to lower auto insurance rates is to pressure the provincial government to allow private insurers to enter the market.
“The best thing people can do is make this a political issue by contacting your MLA [member of the legislator] and letting them know you want change,” Sutherland told Castanet.net. “ICBC needs competition and consumers need choice.”
