One of the things to watch as the B.C. legislature prepares to resume is the remake of ICBC rates and penalties.
You may recall the blame-storming session after the NDP took over, featuring cabinet minister David Eby91裸聊视频檚 91裸聊视频渄umpster fire91裸聊视频� rhetoric for runaway ICBC costs. Eby produced parts of an outside study that the B.C. Liberal government had withheld, and began the latest overhaul of the 40-year-old vehicle insurance monopoly.
The Ernst & Young report highlighted huge deficits, driven mainly by crashes and soaring minor injury claim costs, ridden by personal injury lawyers and medical experts that other provinces reined in long ago. Eby91裸聊视频檚 first announcement was a $5,500 cap on 91裸聊视频減ain and suffering91裸聊视频� payouts, and a civil resolution panel to get minor injuries out of court.
None of this takes effect until September 2019. And when Eby says 91裸聊视频済ood drivers pay less,91裸聊视频� he doesn91裸聊视频檛 mean, er, less. ICBC will file its next rate application by the end of 2018, when Eby hopes you are busy Christmas shopping.
That91裸聊视频檚 on top of the 6.4 per cent hike in basic insurance that took effect last fall. This fall, in what may be Eby91裸聊视频檚 only popular move, rate increases for penalty points and serious offences went up 20 per cent, rising another 20 per cent in 2019.
Next year, young drivers will pay more, regional rates will change to reflect growing urban risks, drivers will have to pay extra for a learner or unlisted driver, and forgiveness of any at-fault crash disappears.
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The Ernst & Young report has a chart showing that when you factor in population growth, B.C.91裸聊视频檚 accident rate actually went down between 2005 and 2014. (See page 61 of .)
Ferrari street racers and texting millennials are sexy media stories, but the big picture also includes safer roads, safer vehicles and lots more drivers, many of them older.
Eby doesn91裸聊视频檛 talk much about the performance of the NDP touchstone, a public monopoly. ICBC91裸聊视频檚 ability to innovate is illustrated by paralysis in the face of Lyft, Uber and similar ride-hailing services. That calls for usage-based insurance. Don91裸聊视频檛 hold your breath.
Private insurers , showing costs would come down with competition. You could bundle your home and car insurance, get a loyalty discount, and hey, maybe even something other than Soviet-style claims service.
Aaron Sutherland of the Insurance Bureau of Canada says the ICBC monopoly 91裸聊视频渢ends to drag claims out longer, and that creates higher claims costs overall.91裸聊视频� Identifying bad drivers could be done with a chip in the car, recording speed and hard braking, but don91裸聊视频檛 wait for ICBC on that either.
This problem isn91裸聊视频檛 new. In 2011, ICBC basic rates jumped 11 per cent. An audit revealed bloated management, 260 positions were cut and a politically appointed board chair exited. Have things really changed?
ICBC91裸聊视频檚 Joanna Linsangan says the explosion of crashes is no myth. There were 350,000 in 2017, a 25 per cent increase since 2014. Injury claim costs are up 26 per cent over the same time. Vehicle repair bills rose 47 per cent. Eby hopes his minor injury and other changes will save ICBC $1 billion a year.
Sutherland agrees, distracted driving and crash claims are up across North America. But the government91裸聊视频檚 own study compares B.C. with Alberta91裸聊视频檚 competitive insurance market.
91裸聊视频淵ou pay less in Alberta, and you get more when you make a claim,91裸聊视频� he said. 91裸聊视频淵ou get much more value for your money.91裸聊视频�
Tom Fletcher is B.C. legislature reporter and columnist for Black Press. Email: tfletcher@blackpress.ca
tfletcher@blackpress.ca
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