Vancouver, British Columbia – An initial report by the Insurance Corporation of British Columbia (ICBC) shows strong financial results and high customer satisfaction that should translate into steady or reduced vehicle insurance rates in 2008.
“Our early analysis indicates that there is no need for additional rate changes for basic insurance this year,” said ICBC president and CEO Paul Taylor. “Furthermore, there is room for a three per cent reduction in rates for optional insurance, partly due to declining claims costs for vehicle theft.”
ICBC’s net income is reported at $642 million, including investment income of $612 million, due in part to the sale of the Central City development in Surrey. Taylor said the 2007 financial performance has allowed the company to build capital up to the required levels ahead of schedule; it serves as a contingency fund to help keep rates stable by absorbing unexpected spikes in claims costs or unanticipated declines in investment income.