ICBC seeks a 1.9% basic insurance rate reduction
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Today, ICBC applied to the British Columbia Utilities Commission (BCUC) to reduce basic insurance rates by an average of 1.9%, effective November 1, 2010.
The application for the rate reduction was included in a revenue requirements application that has been filed with the BCUC, which is responsible for regulating basic insurance rates and service in British Columbia.
"Rate changes are mainly driven by claims costs, and fewer crashes help us keep our rates low and stable," said ICBC's President and CEO, Jon Schubert. "Our customers are the ones to primarily thank for this reduction - it's their smart driving that has helped us control our claims costs and apply for this rate reduction."
At the same time, while the number of claims has gone down, the cost of the average claim - particularly bodily injury claims that are covered by the basic insurance side of the business - continues to increase which does put pressure on any basic insurance rate reduction. ICBC has kept basic insurance rates unchanged for the last two years.
Customers who have purchased the same basic and optional insurance coverage over the past five years have seen, on average, their rates decline.
The proposed 1.9% reduction in basic insurance rates still requires the approval of the BCUC.
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