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Acura604 · 12-14-2018, 01:53 PM

PAY UP BOYS!

https://theprovince.com/news/local-n...d-9007aee8be51

About 25 per cent of customers will see a basic rate decrease, 42 per cent will see an increase between zero and 6.3 per cent, and 33 per cent will see an increase of more than 6.3 per cent.
About one-third of B.C. drivers may see their basic insurance rates jump by more than 6.3. per cent after the Insurance Corp. of B.C. submitted an application Friday for an increase next spring.

ICBC is asking the B.C. Utilities Commission for the increase after it lost $1.3 billion in the last fiscal year and is projecting a loss of $890 million this fiscal year.

Attorney General David Eby has referred to ICBC as a “financial dumpster fire” and the B.C. government has worked with the public insurer to introduce major changes to put it back on track.

If ICBC’s request is approved, customers’ basic insurance rate would increase by an average of close to $60 on April 1, the corporation says. Rate design changes approved by the Utilities Commission this fall won’t be implemented until September.

“A rate increase is never going to be positive but I think the more important thing in this announcement is that this is an encouraging sign that we’re seeing the positive measures that we’re implementing, in terms of reform, come to light,” said Nicolas Jimenez, who was appointed president and CEO of ICBC in July.

Jimenez said that without the reforms, ICBC was looking at a rate increase of more than 40 per cent, meaning drivers could have paid an average of $360 more for basic insurance.

The increase is necessary, ICBC argues, because of sharp increases in the number of crashes as well as injury and vehicle damage claims over the past five years.

Since 2014, injury claims costs increased by 43 per cent to a project total of $3.67 billion in 2018 alone, while vehicle damage costs have increased by 50 per cent to a projected total of $1.63 billion, according to ICBC.

Jimenez said that in September, when the rate-design changes are added to the basic-rate increase, about 25 per cent of customers will see a basic rate decrease, 42 per cent will see an increase between zero and 6.3 per cent, and 33 per cent will see an increase of more than 6.3 per cent.

“Which is the whole point of the design,” Jimenez said. “There are a lot of people who really deserve to be paying less than they’re paying today and high-risk drivers are going to be asked to pay more. I think that’s entirely consistent with where British Columbians are at.”

In the category of basic auto insurance — mandatory for all B.C. drivers — the maximum allowable rate hike had been 7.9 per cent.

The maximum increase is determined by ICBC’s “rate-smoothing framework” which caps the annual hike at 1.5 percentage points above the previous year’s increase (which was 6.4 per cent.)

Optional insurance products will continue to be adjusted to remain competitive with the private market, Jimenez said.

Eby released a statement slamming the previous Liberal government for failing to prevent increases he described as preventable.

“The previous government was presented with clear solutions to ICBC’s financial crisis and warned that if it did not act, drivers would suffer the consequences,” he said. “They not only ignored the warning, they hid the solutions from the public.”

Eby said the changes will significantly reduce legal costs linked to minor injury claims while improving care for people who are injured in crashes.

“We are also undertaking a historic modernization of our public auto-insurer to make insurance rates more fair for people in B.C.,” he added.

Opposition leader Andrew Wilkinson said in a statement that the rate increase demonstrated a need for “a complete overhaul” of ICBC.

“ICBC is a 45-year-old state-run monopoly and hasn’t been fixed by any government,” said Wilkinson, who was a cabinet minister in 2014 when it was revealed that his government had ignored recommendations in an Ernst & Young report it commissioned that could have addressed the financial issues earlier.

“British Columbians already pay the highest auto insurance rates in Canada. Today’s rate increase shows that no matter how much David Eby and the NDP try to blame others for the situation at ICBC, British Columbians are the ones paying the price and that is not fair.”

Jimenez said there will continue to be challenges for ICBC related to claims and repair costs.

“Those cost pressures remain in the system so we’re going to continue to work with government to look for ways to drive out more reforms and more cost savings, so that when we look to next year and the year after that, we can continue to bring rate increases closer to the rate of inflation,” he said.

12-14-2018, 01:53 PM	#219
Acura604 RS has made me the bitter person i am today! Join Date: Apr 2001 Location: Vancouver Posts: 4,824 Thanked 3,020 Times in 789 Posts Failed 373 Times in 99 Posts Member's Picture Albums	PAY UP BOYS! https://theprovince.com/news/local-n...d-9007aee8be51 About 25 per cent of customers will see a basic rate decrease, 42 per cent will see an increase between zero and 6.3 per cent, and 33 per cent will see an increase of more than 6.3 per cent. About one-third of B.C. drivers may see their basic insurance rates jump by more than 6.3. per cent after the Insurance Corp. of B.C. submitted an application Friday for an increase next spring. ICBC is asking the B.C. Utilities Commission for the increase after it lost $1.3 billion in the last fiscal year and is projecting a loss of $890 million this fiscal year. Attorney General David Eby has referred to ICBC as a “financial dumpster fire” and the B.C. government has worked with the public insurer to introduce major changes to put it back on track. If ICBC’s request is approved, customers’ basic insurance rate would increase by an average of close to $60 on April 1, the corporation says. Rate design changes approved by the Utilities Commission this fall won’t be implemented until September. “A rate increase is never going to be positive but I think the more important thing in this announcement is that this is an encouraging sign that we’re seeing the positive measures that we’re implementing, in terms of reform, come to light,” said Nicolas Jimenez, who was appointed president and CEO of ICBC in July. Jimenez said that without the reforms, ICBC was looking at a rate increase of more than 40 per cent, meaning drivers could have paid an average of $360 more for basic insurance. The increase is necessary, ICBC argues, because of sharp increases in the number of crashes as well as injury and vehicle damage claims over the past five years. Since 2014, injury claims costs increased by 43 per cent to a project total of $3.67 billion in 2018 alone, while vehicle damage costs have increased by 50 per cent to a projected total of $1.63 billion, according to ICBC. Jimenez said that in September, when the rate-design changes are added to the basic-rate increase, about 25 per cent of customers will see a basic rate decrease, 42 per cent will see an increase between zero and 6.3 per cent, and 33 per cent will see an increase of more than 6.3 per cent. “Which is the whole point of the design,” Jimenez said. “There are a lot of people who really deserve to be paying less than they’re paying today and high-risk drivers are going to be asked to pay more. I think that’s entirely consistent with where British Columbians are at.” In the category of basic auto insurance — mandatory for all B.C. drivers — the maximum allowable rate hike had been 7.9 per cent. The maximum increase is determined by ICBC’s “rate-smoothing framework” which caps the annual hike at 1.5 percentage points above the previous year’s increase (which was 6.4 per cent.) Optional insurance products will continue to be adjusted to remain competitive with the private market, Jimenez said. Eby released a statement slamming the previous Liberal government for failing to prevent increases he described as preventable. “The previous government was presented with clear solutions to ICBC’s financial crisis and warned that if it did not act, drivers would suffer the consequences,” he said. “They not only ignored the warning, they hid the solutions from the public.” Eby said the changes will significantly reduce legal costs linked to minor injury claims while improving care for people who are injured in crashes. “We are also undertaking a historic modernization of our public auto-insurer to make insurance rates more fair for people in B.C.,” he added. Opposition leader Andrew Wilkinson said in a statement that the rate increase demonstrated a need for “a complete overhaul” of ICBC. “ICBC is a 45-year-old state-run monopoly and hasn’t been fixed by any government,” said Wilkinson, who was a cabinet minister in 2014 when it was revealed that his government had ignored recommendations in an Ernst & Young report it commissioned that could have addressed the financial issues earlier. “British Columbians already pay the highest auto insurance rates in Canada. Today’s rate increase shows that no matter how much David Eby and the NDP try to blame others for the situation at ICBC, British Columbians are the ones paying the price and that is not fair.” Jimenez said there will continue to be challenges for ICBC related to claims and repair costs. “Those cost pressures remain in the system so we’re going to continue to work with government to look for ways to drive out more reforms and more cost savings, so that when we look to next year and the year after that, we can continue to bring rate increases closer to the rate of inflation,” he said.