Province chooses PwC for ICBC review

The B.C. government has hired PwC Canada to lead an operational review of the province’s public automobile insurer.

In September, Attorney General David Eby announced the review of the Insurance Corp. of B.C., along with a variety of short-term changes to deal with the insurer’s financial issues and increases to basic and optional rates.

“This is one of the many actions we are taking so that the people of B.C. can have confidence in and continue to benefit from ICBC, one of our most important public assets,” Eby said in a news release. “We are leaving no stone unturned.”

PwC Canada is expected to identify opportunities to reduce costs at the insurer, which lost almost half a billion dollars last year.

We must act urgently, because major rate increases are not an option.

It will look at all previous reports and recommendations related to operations over the last five years, and will review approaches in other jurisdictions and segments within the insurance industry related to ICBC’s various business lines. PwC Canada will conduct interviews with current unionized and management staff from ICBC.

Part of the review will involve selecting 100 random files for a comprehensive review.

“The resulting solutions we want to see must be focused on striking the balance between relieving the cost pressures on ICBC while ensuring improved services and affordable rates for all British Columbians,” ICBC board chair Joy MacPhail said.

A report commissioned by the ICBC and prepared by Ernst & Young that was leaked in July said the insurer is facing unsustainable financial pressures and requires immediate intervention by the provincial government.

“ICBC will not be back on the road to financial sustainability or in a position to provide affordable rates to British Columbians without major changes at every level,” Eby said. “We must act urgently, because major rate increases are not an option.”

A final report will be submitted to the government in early 2018.