Government capital transfers, soaring costs, and more vehicle repairs: this is the reality of ICBC.
Since 2010, over $1.2 billion has been taken out of the crown corporation by the provincial government. ICBC now operates with annual profit losses, putting them further and further into the red. For the fiscal year ending in 2018, ICBC is forecasting a loss of $1.3 billion.
Not only is ICBC’s financial health in jeopardy, it is failing to deliver a quality service. In 2017 ICBC had the highest premium costs in Canada, but the second lowest claim amount. The path they’re currently on is without a doubt, unsustainable.
Accountability for drivers, but what about the insurer?
Public feedback and upset over ICBC’s current financial situation has resulted in a new provincial consultation to review ICBC’s auto insurance system. The goal: to make drivers more accountable for their driving behaviour and decisions on the road.
So far, the province has discussed stiffening financial penalties for drivers using electronic devices. But much more work is needed to dig ICBC out of the financial catastrophe that it is in.
The public consultation is now closed. To keep the pressure on, you can let us know what your biggest concerns are and what needs to happen by signing our ICBC Action Alert.