Vancouver, British Columbia – The Insurance Corporation of British Columbia (ICBC) is reducing its optional rates by three per cent, and expects basic rates to remain the same in 2009.
“We are very pleased to be able to reduce optional rates by an average of three per cent, and preliminary indications are that basic insurance rates will stay the same,” said ICBC president and CEO Jon Schubert. “We are working on the final recommendation on basic rates for the British Columbia Utilities Commission.”
The agency said that this means customers who have purchased the same basic and optional policies from ICBC over the last five years have, on average, seen their premiums go down.
ICBC is reporting net income of $497 million for the year ending December 31, 2008, down $145 million or 23 per cent from the previous year. Despite the drop in net income, its financial performance was strong, thanks to a moderation in claims and the corporation’s disciplined investment strategy, which generated a rate of return of just over one per cent in 2008 in spite of difficult economic times.