B.C. premier announces intent to freeze ICBC rates for another 2 years

The province intends to freeze rates at British Columbia's public auto insurance provider for another two years.

Premier David Eby announced his government is applying to regulator B.C. Utilities Commission for the freeze. If accepted, it will mean five straight years of no rate increases by the Insurance Corporation of British Columbia (ICBC). 

"Our first priority for British Columbians is making sure that life is more affordable for them," said Eby in a news conference Monday morning. 

ICBC CEO Nicolas Jimenez said the crown corporation is in a solid financial position with ample reserves, despite falling revenues and a projected $300 million loss this year.

"We have lots of layers of protection built into how we run the company," said Jiminez. 

"You have an investment portfolio that allows you to set aside money for claims you are going to pay in the future. In addition, we have money set aside in the event of some unexpected and unforeseen loss."

Public Safety Minister and Solicitor General Mike Farnworth said he is "confident" the corporation can stay afloat with a zero per cent rate increase over the next two years. 

To determine the feasibility of the rate freeze, actuaries looked at things like the cost of repairs for ICBC, accident rates, premium fees and compared them to current and historical trends to project what would work and what wouldn't, Farnworth said. 

Actuaries use probability, statistics and risk management to determine the potential financial impact of events.

Eby said the application to the regulator for the rate freeze includes a plan to increase ICBC reserves.

In the past two years the NDP government has unveiled a number of programs to benefit drivers, including a one-time gas rebate of $110 earlier this year that went to 3.5 million people to offset surging gas prices. 

In 2021, ICBC also issued two COVID-19 rebates with a combined average of $300 due to a reduction in claims.

Rates have dropped since the NDP government introduced a "no-fault" auto insurance model in May 2021. The changes came after Eby, then attorney general, described ICBC under the former B.C. Liberals government as a "dumspter fire" for losing $1.3 billion in 2017-18. 

"I think, by and large the system has been working very well," Farnworth said.

Under the "no-fault" model, lawyers are largely eliminated from the picture.

People injured in a motor vehicle accident no longer have the right to sue an at-fault driver — except in certain cases where the driver committed a criminal offence, such as impaired or reckless driving — leaving anyone involved in a collision to deal directly with ICBC.