Times Colonist: ICBC gets reprieve to figure out insurance rate hike

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September 1 2017 | Amy Smart

Quoted from the article:

Attorney General David Eby, the minister responsible for ICBC, said British Columbians won’t face the 20 to 30 per cent rate increase that accounting firm Ernst and Young said could be necessary to fix the Crown corporation’s finances.

“We need the extra two weeks to ensure we’re keeping rates affordable for British Columbians and that we’re true to our commitment not to do this 20 to 30 per cent rate increase.”Ernst and Young’s 203-page review, released last month, painted a dismal picture of ICBC and outlined “significant structural problems.”

Despite collecting higher premiums than other provinces, the Crown corporation still doesn’t have enough to cover the cost of claims and is on track to add $1.1 billion to its deficit each year.

The review said drivers could face an average 30 per cent increase in rates by 2019, if trends continue.

Eby said the additional time will give the government an opportunity to assess ICBC’s financial challenges, with the goal of keeping rates at the lowest possible level.

“Like most British Columbians, I was quite startled to discover, five weeks ago when I became responsible for the file, the financial mess that was taking place and is continuing to take place at ICBC. We’ve been doing a lot of work to identify early steps we can take to turn ICBC around and a way to avoid the recommended 30 per cent rate increase from the Ernst and Young report,” he said.

Read the full article: http://www.timescolonist.com/news/local/icbc-gets-reprieve-to-figure-out-insurance-rate-hike-1.22328178