ICBC rates to rise 4.9%

Review to keep auto insurance affordable launched

Motorists in British Columbia will see a rate increase for basic insurance of 4.9 per cent.

The provincial government said it has directed the B.C. Utilities Commission to approve the rate increase next year for Insurance Corp. of B.C., but it wants to make sure that in the long term, rates are in line with inflation.

“I’ve heard a message loud and clear that people are worried about the increasing cost of living,” Transportation Minister Todd Stone told reporters in a conference call.

The minister announced the government has launched a third-party review to make recommendations that will keep auto insurance rates affordable in the long term.

Stone said the goal for ICBC to manage its cost pressures and bring rate increases closer to the inflation rate.

He said the review will look at the entire spectrum of the insurer’s operations to come up with as many solutions as possible for reducing cost pressures.

The third-party review comes as the frequency and severity of injury claims has jumped, and the average cost of vehicle claims has increased by 17 per cent between 2014 and 2015.

ICBC recently announced that it would double premiums for luxury vehicles and eventually stop insuring them. It also plans to clamp down on fraud with a new detection tool.