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Acura604 · 11-23-2018, 12:39 PM

https://theprovince.com/news/local-n...c-415574d5031d

Eby said the Insurance Corp. of B.C.'s second-quarter results show that the insurer's "financial position remains serious."
Attorney General David Eby says ICBC expects worse-than-predicted losses of $890 million this fiscal year, after losing $1.3 billion last year.

Eby said a news release Friday that the Insurance Corp. of B.C.’s second-quarter results show that the insurer’s financial position remains serious. He has called ICBC a “financial dumpster fire” and on Friday reiterated his criticism of the previous B.C. Liberal government for ignoring ICBC’s dire state and keeping it hidden from the public.

“This financial situation reflects the mounting pressure ICBC is under from the rising number and cost of claims,” Eby said.

“The primary reasons are higher bodily injury costs, as well as claims taking longer to resolve, which often result in higher claims costs. A key driver of these costs is a growing trend toward plaintiff lawyers strategically building the value of the claim — costs which have to be paid for by ICBC ratepayers.”

Eby said that since March last year, the dollar value of settlements demanded by lawyers for plaintiffs rose by 27 per cent and the average cost of closed, litigated injury claims for the first six months of fiscal 2018 hit $121,686, up from $100,427 during the same period last year.

Those lawyers are also spending more money to build their cases, increasing the average cost of experts and reports by 20 per cent, Eby said.

“Given this situation, we are looking for ways to accelerate and add to our efforts to solve the financial problems at ICBC. Earlier this year, our government announced a suite of product changes to stem ICBC’s losses, provide enhanced care for people injured in crashes and to make insurance rates fairer,” Eby said.

Eby said those changes are expected to bring in $1 billion in savings annually but won’t start until the reforms take effect on April 1, 2019.

In August, Eby announced proposed changes to auto insurance rates that would give about 39 per cent of drivers a reduction up to $50, 13 per cent between $50 and $100, and 15 per cent more than $100. Meantime, 11 per cent face increases up to $50, five per cent between $50 and $100, and 17 per cent more than $100.

The proposed changes would move ICBC’s basic insurance to a “driver-based model,” where at-fault crashes are tied to drivers rather than vehicle owners. New discounts would be given for new vehicles with manufacturer-installed automatic braking systems or which are driven less than 5,000 kilometres a year.

The government will also put a $5,500 cap next year on payouts for what it calls minor injuries.

11-23-2018, 12:39 PM	#124
Acura604 RS has made me the bitter person i am today! Join Date: Apr 2001 Location: Vancouver Posts: 4,822 Thanked 3,020 Times in 789 Posts Failed 372 Times in 98 Posts Member's Picture Albums	https://theprovince.com/news/local-n...c-415574d5031d Eby said the Insurance Corp. of B.C.'s second-quarter results show that the insurer's "financial position remains serious." Attorney General David Eby says ICBC expects worse-than-predicted losses of $890 million this fiscal year, after losing $1.3 billion last year. Eby said a news release Friday that the Insurance Corp. of B.C.’s second-quarter results show that the insurer’s financial position remains serious. He has called ICBC a “financial dumpster fire” and on Friday reiterated his criticism of the previous B.C. Liberal government for ignoring ICBC’s dire state and keeping it hidden from the public. “This financial situation reflects the mounting pressure ICBC is under from the rising number and cost of claims,” Eby said. “The primary reasons are higher bodily injury costs, as well as claims taking longer to resolve, which often result in higher claims costs. A key driver of these costs is a growing trend toward plaintiff lawyers strategically building the value of the claim — costs which have to be paid for by ICBC ratepayers.” Eby said that since March last year, the dollar value of settlements demanded by lawyers for plaintiffs rose by 27 per cent and the average cost of closed, litigated injury claims for the first six months of fiscal 2018 hit $121,686, up from $100,427 during the same period last year. Those lawyers are also spending more money to build their cases, increasing the average cost of experts and reports by 20 per cent, Eby said. “Given this situation, we are looking for ways to accelerate and add to our efforts to solve the financial problems at ICBC. Earlier this year, our government announced a suite of product changes to stem ICBC’s losses, provide enhanced care for people injured in crashes and to make insurance rates fairer,” Eby said. Eby said those changes are expected to bring in $1 billion in savings annually but won’t start until the reforms take effect on April 1, 2019. In August, Eby announced proposed changes to auto insurance rates that would give about 39 per cent of drivers a reduction up to $50, 13 per cent between $50 and $100, and 15 per cent more than $100. Meantime, 11 per cent face increases up to $50, five per cent between $50 and $100, and 17 per cent more than $100. The proposed changes would move ICBC’s basic insurance to a “driver-based model,” where at-fault crashes are tied to drivers rather than vehicle owners. New discounts would be given for new vehicles with manufacturer-installed automatic braking systems or which are driven less than 5,000 kilometres a year. The government will also put a $5,500 cap next year on payouts for what it calls minor injuries.