IBC calls for more auto insurance competition in BC

IBC calls for more auto insurance competition in BC | Insurance Business

IBC calls for more auto insurance competition in BC
The Insurance Bureau of Canada (IBC) has issued a statement calling for major reforms in British Columbia’s auto insurance space to make coverage more affordable.

The IBC is recommending that the province’s public insurer, the Insurance Corporation of British Columbia (ICBC), should undergo a series of changes. The bureau is also suggesting that more competition in BC’s auto insurance market is in order, which would allow drivers to save more money and make insurance more affordable.

“BC drivers pay the highest auto insurance premiums in Canada, yet receive less than drivers in other provinces when they make a claim. Reforming ICBC and bringing competition to the market would save drivers money and make auto insurance in BC more affordable,” the IBC said in its statement.

In addition, IBC quoted a recent report which found that BC drivers could see considerable savings if ICBC’s monopoly over the local auto insurance industry was ended. Safe drivers could save as much as 18% on their basic auto insurance with more insurers opening shop in the region, the bureau pointed out.

“Under the government monopoly, ICBC’s basic insurance rates have increased over 42% since 2011. The average BC driver now pays $1,680 every year for their auto insurance – more than any other province in Canada,” the IBC stated.

“Competition provides a powerful incentive for any company to keep prices down and to deliver the best customer service possible. Auto insurance is no exception to this rule and allowing private insurers the chance to compete with ICBC is in the best interest of BC drivers.”

Although competition by itself will not solve all of BC’s auto insurance problems, the IBC said that it is still “a critical part of the solution.”

“Increased choice in the marketplace is the most effective way to deliver better costs to consumers and the experience that Canada’s private insurance companies have gained in other provinces can help identify solutions to improve affordability in auto insurance in BC.”

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