Days after the B.C. government racked up a nearly $600 million deficit at ICBC for the first half of the fiscal year, the insurance industry is pointing to the benefits of privatization.
The President and Chief Executive Officer of the Insurance Bureau of Canada Don Forgeron says that opening up BC’s auto insurance market to competition could save drivers up to $325 annually.
“We had a company called MNP do a report for us and take a look at the current landscape,” he said. “So there was a number of areas where they said that savings could be found.”
“One would be in the area of claims costs, just a more efficient approach to settling claims.”
Forgeron adds that drivers get fewer benefits when they make a claim noting higher prices and fewer benefits, a lose-lose situation.
“In terms of discounts, where a customer would have home and auto insurance with the same provider, there’s often a discount to that customer,” Forgeron added. “There might be a discount for renewing your coverage with the same provider as well.”
ICBC is projecting a year-end financial net loss of $890 million for the 2018/19 fiscal year.