VANCOUVER, Dec. 14, 2018 /CNW/ - Today, the Insurance Corporation of British Columbia (ICBC) announced a 6.3 % rate increase in auto insurance premiums for drivers in British Columbia (BC).
"Today's rate increase is yet more evidence that the solution to the challenges in BC's auto insurance system must be found outside our Crown insurer. Under ICBC's monopoly, British Columbians pay the highest auto insurance premiums in Canada – hundreds of dollars more than nearly all other Canadians, and double what Canadians in some provinces pay," said Aaron Sutherland, Vice-President, Pacific, Insurance Bureau of Canada (IBC). "Opening BC's auto insurance market to competition and giving drivers choice and the ability to shop around is the best way to improve the affordability of auto insurance in BC going forward," he added.
An MNP LLP report commissioned by IBC and released in January 2018 demonstrates how a competitive market for auto insurance could reduce premiums in BC. The report found that Canada's private insurers have increased efficiencies, developed product innovations and identified new ways to cut claims costs that could lower premiums for BC drivers.
"Opening BC's auto insurance market to competition could save drivers up to $325 annually. Competition is a powerful incentive for any company to deliver the best service at the best price. Auto insurance is no exception to that rule," said Sutherland.
BC drivers agree. A recent survey found that British Columbians overwhelmingly want increased choice in auto insurance: close to 80% support increased competition in the market.
About Insurance Bureau of Canada Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 126,000 Canadians, pays $9 billion in taxes and has a total premium base of $54.7 billion.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow IBC on Twitter @IBC_West and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC (1-844-227-5422).
SOURCE Insurance Bureau of Canada
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Insurance Bureau of Canada is the national industry association representing Canada's private home, car and business insurers. Its member companies represent 90% of the property and casualty (P&C) insurance market in Canada. The P&C insurance industry employs over 114,000...