Vancouver, British Columbia – The Insurance Corporation of British Columbia (ICBC) has applied for a reduction of 1.9 per cent in basic insurance rates.
The application was included in a revenue requirements application that has been filed with the British Columbia Utilities Commission (BCUC), which is responsible for regulating basic insurance rates and service in B.C. The reduction would be effective November 1, 2010.
“Rate changes are mainly driven by claims costs, and fewer crashes help us keep our rates low and stable,” said Jon Schubert, president and CEO of ICBC. “Our customers are the ones to primarily thank for this reduction. It’s their smart driving that has helped us control our claims costs and apply for this rate reduction.”
While the number of claims has gone down, the cost of the average claim, particularly bodily injury claims covered by the basic insurance, continues to increase, putting pressure on any basic insurance rate reduction.
ICBC said it has kept basic insurance rates unchanged for the last two years.