The Insurance Bureau of Canada has called on the British Columbia government to strengthen community resilience against wildfire and flooding and to end the Insurance Corporation of British Columbia's monopoly on vehicle damage coverage, as part of its submission to the province's 2027 budget consultation process.
The recommendations were presented to the Select Standing Committee on Finance and Government Services by Greg Moy, manager of government relations, Pacific, IBC.
"When it comes to severe weather, investing in prevention is far more effective than paying for recovery," said Moy. "Governments can take practical steps that make communities safer while reducing the long-term cost of disasters for governments and residents."
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IBC's call for greater investment in resilience is backed by a sharply deteriorating loss price.
Insured damage from severe weather events in Canada exceeded $2.4 billion in 2025, making it the tenth costliest year on record, according to CatIQ. Events driving that total included December flooding across southwestern BC, which prompted the provincial government to activate its Disaster Financial Assistance program.
Meanwhile, the scale of recent losses has intensified pressure on the affordability and availability of property insurance across the country. National home insurance inflation in Canada came in at 4.01% year-over-year in 2026, well above the general inflation rate of 2.3%, with Alberta premiums rising 9.29% following another year of severe weather losses. BC was the only province to record a premium decline, but analysts noted that underlying risk exposure remains elevated.
SGI Canada COO Andrew Voroney has warned that affordability, not capacity, may become Canada's defining insurance crisis, with personal lines expected to face continued deterioration through 2026.
IBC's specific recommendations to the BC government include fully funding the province's adaptation and flood strategies, improving hazard mapping and building codes, encouraging FireSmart wildfire resilience practices in high-risk communities, and ensuring new homes are not built in areas vulnerable to flooding or wildfire.
Alongside its climate resilience push, IBC renewed its longstanding call for the BC government to introduce private competition into the vehicle damage portion of the auto insurance market, currently monopolized by ICBC.
IBC pointed to Quebec, where private insurers compete for vehicle damage coverage, as evidence that competition delivers materially lower premiums, with BC drivers paying almost 40% more than their Quebec counterparts for comparable coverage. The organization argued there is no compelling public policy rationale for maintaining a state monopoly over coverage that pays for vehicle repairs, as distinct from the compulsory injury and liability components of auto insurance.
"Competition is a powerful tool to ensure consumers get the best product and service at the best possible price - and auto insurance is no exception," said Moy. "There is no public policy reason to maintain a monopoly over the insurance coverage that pays to repair your vehicle. Opening this part of the market would give drivers the choice they deserve."
Meanwhile, the political dynamics around ICBC reform remain complex.
During the 2024 provincial election, BC Conservative Leader John Rustad pledged to end ICBC's monopoly on basic auto insurance. The governing NDP countered that its reforms had already saved drivers an average of 20% per year and retained government, leaving ICBC's structure unchanged. The Fraser Institute has argued that ICBC's costs are generally the highest in Canada and that as a monopoly it lacks competitive pressure to keep rates low or to provide a performance benchmark.
The debate is not unique to BC. Ontario is implementing significant auto insurance reforms, effective July 1, 2026, including making most accident benefits optional in an effort to create more personalized and competitive coverage options, though critics warn that the changes risk leaving drivers underinsured.
That said, BC remains the most significant unresolved market access question in personal lines.
