Privatize ICBC now
Dear Premier Horgan: As you are aware public and private insurers provide auto insurance in Canada. The government runs the auto insurance system in British Columbia, Saskatchewan and Manitoba.
In Quebec, the public insurer manages the insurance regime for bodily injuries only.
The 2017 stats on average insurance costs in Canada by Province per vehicle (private vehicles only) are as follows:
Rank Province Average premium 1 Quebec $724 2 Prince Edward Island $755 3 New Brunswick $763 4 Saskatchewan $775 5 Nova Scotia $783 6 Yukon $806 7 Nunavut $968 8 Northwest Territories $974 9 Manitoba $1,001 10 Newfoundland/Labrador $1,090 11 Alberta $1,179 12 British Columbia $1,316 13 Ontario $1,458 B.C. is currently the second highest for insurance costs in Canada. With the 2017 $1.3 billion loss at ICBC the impending increase in insurance costs in B.C. will jump to in excess of $1,700 per private vehicle.
This is ludicrous and as a taxpayer, who is already prepping to pay a 16 per cent increase in carbon taxes due to your parties “deal” with the Green party, I would suggest you need to reduce costs/taxes on individuals and corporations in order to drive investment in the province.
One effective method is to privatize ICBC, this would lead to:
1. Lower premiums by as much as 18 per cent (Fraser Institute)
2. Allow bundling home and auto insurance, which, could save the province’s taxpayers a further $85 to $225 annually
3. Reduction of ever-more and ever-higher paid managers at Insurance Corporation of British Columbia:
a. Claims adjuster at ICBC is paid $56,292/annually versus a private insurance adjuster salary of $52,946 (+6 per cent)
b. Executive compensation (top 10) of $3.5 million (ICBC annual report)
4. Reduced pressure on provincial pension system through a reduction in future employees
5. Positive cash flow through sale of ICBC assets
6. Elimination of political interference in insurance rates and provisioning
7. Improved insurance options and better value
8. Elimination of “special status” to particular automotive body shops, increasing competition and lowering prices
9. Elimination of lawyers in injury claims as each automobile owner’s insurance company would fight for them to lower costs.
With the fact that B.C. has among the highest premiums in the country and with the political ramifications and interference all B.C. drivers should be asking why the provincial government continues to restrict competition and consumer choice.
And please don’t blame it on the BC Liberals, ICBC was created by the NDP and now you can do us right by getting rid of ICBC.
Please do B.C. taxpayers a favour and privatize ICBC. Clarke Carson West Kelowna