British Columbia’s drivers have spoken, and their message is clear: the province wants their auto insurance system privatized.
After the Insurance Corporation of British Columbia (ICBC) announced that it may seek a 6.7% increase in basic auto insurance rates, public opinion quickly turned on the provincial crown corporation.
In a Castranet poll that poised the question “Should ICBC be privatized?,” 4,344 respondents agreed that it should, while a mere 1,162 wished for it to remain public. Not only are these numbers a statement on their own, but readers were vociferous in their “anti-ICBC sentiment.”
“Yes please. Moved from Ontario. 2015 Jeep. Perfect record. Insurance doubled. Driving to work? Extra. Outside the province? Extra. Outside the country? Extra,” said Ryan Benson. “B.C. gets F'ed when it comes to insurance.”
Brokers understand their frustration, and agree that the government’s role in the P&C market should remain limited.
“This just points out that the government shouldn’t dabble in what belongs to the free market,” said Nick Kandiuk, assistant VP of casualty, A.M. Fredericks Underwriting Management Ltd. “Unfortunately, when something is government run, you end up with a lot of bureaucratic waste that accompanies a lack of competition.”
Kandiuk believes that without pressure from rival insurers, ICBC will continue to take actions that lead to an increase in basic auto insurance rates.
“They’re just not as cost conscious. They have no competition to look out for, so they just spend, spend, spend and then increase the premiums,” Kandiuk said.
While Kandiuk lives and works in Ontario, he feels that another province has managed to strike the ideal balance between government oversight and robust private sector competition.
“Quebec does it best,” he said. “They have government-run accident benefits but everything else is free market. That system seems to be the least controversial in Canada.”
As a result, Kandiuk believes that Quebec will never see such skewed poll results as those emanating from British Columbia.
“They have regulations like every other province, but outside those regulations, they can operate as a regular insurance industry,” he said. “Everybody seems to be happy there.”
