News that BC drivers could be paying 30 per cent more on insurance premiums by 2019 is alarming — even more so when you consider that British Columbians already pay some of the highest auto insurance premiums in the country.
The recently released report by Ernst and Young shows that B.C.’s auto insurance system is no longer sustainable and that new approaches are required.
While the report outlines many potential options for improvement, one key piece that is missing from the discussion is the benefit that comes with increased competition and choice in auto insurance.
Since 1973, drivers in B.C. have had only one choice in their basic auto insurance services. Competition provides a powerful incentive for a company to keep prices down, to understand and meet customer needs, and to deliver the best customer service and experience possible. Auto insurance is no exception to this rule, and allowing private insurers the chance to compete with ICBC is in the best interest of BC drivers.
While drivers here pay among the highest premiums for auto insurance in the country, they receive less from their coverage when making a claim than drivers in other provinces.
Now, more than ever, it is time for change.
Insurance Bureau of Canada (IBC) is the trade association representing the country’s private home, auto and business insurers. We encourage competition in the marketplace as a tool to keep premium prices down and give consumers the choice they deserve. Competition alone cannot solve all of the challenges facing B.C.’s auto insurance marketplace but it is a critical part of the solution.
Increased choice in the marketplace is the most effective way to deliver better costs to consumers and the experience that Canada’s private insurance companies have can help identify solutions to keep insurance rates competitive here. Private insurers have developed new and innovative products and services (such as usage-based insurance) in other Canadian provinces, and are keen to bring these to the BC marketplace.
BC drivers deserve to be able to choose which auto insurance provider is best for them.
Aaron Sutherland
Vice-President, Pacific, IBC