VANCOUVER, Nov. 20, 2018 /CNW/ - The provincial government introduced legislation that allows ride-sharing companies to enter the British Columbia (BC) market. At the same time, the Insurance Corporation of British Columbia (ICBC) can't deliver an auto insurance product for ride-sharing operators before fall 2019. That's another year before BC residents can take advantage of the services provided by ride-sharing companies.
That consumer demand could be met immediately by private insurers who already have ride-sharing insurance products available in other provinces.
"Despite the long-established demand for ride-sharing services in BC, the announcement that ICBC is unable to identify a timely insurance solution to facilitate its entry in British Columbia is a troubling response to what consumer's have been asking for," said Aaron Sutherland, Vice-President, Pacific, Insurance Bureau of Canada. "Private Canadian insurers in Alberta, Ontario and Quebec have developed insurance products that cover the risk for ride-sharing companies, ensuring that both drivers and passengers are protected. If permitted, these insurers could quickly bring these products to BC."
Metro Vancouver is the largest region in North America without ride-sharing services. While the public has been calling for ride-sharing since 2012, ICBC has been unable to create an insurance product for this industry. Because BC's auto insurance market is not open to competition, drivers, and customers of ride-sharing services are poorly served.
"Competition provides a powerful incentive for any company to deliver innovative products that meet the evolving needs of customers," added Sutherland. "Auto insurance is no exception to this rule, and Canada's private insurers are eager to better serve the BC marketplace."
ICBC's lack of innovative auto insurance products is yet another example of the Crown insurer's inability to change and adapt to the 21st century. Its monopoly limits consumer choice and hinders innovations that could make auto insurance more affordable in BC.
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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