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ICBC Claims Nearly $1 Billion in Net Losses Over Last 3 Quarters

Nine months into their fiscal year, the Insurance Corporation of British Columbia (ICBC) has posted net losses of $935 million. Company projections indicate ICBC year-ending losses could eclipse $1.3 billion in net losses.

‘’The number of crashes occurring across BC is continuing to escalate year-after-year,’’ the corporation, said. ‘’As a result, the number of claims we are receiving is growing by thousands each year.’’

The growing number of claims is one of two main reasons for the loss numbers. The other is the large costs associated with the claims. ICBC says the number of claims, with an average payout of $450,000 or more, has increased by 80% over the last 12 months. Settling all these large claims has caused a backlog for claims waiting to be settled.

"woman with hand on neck"

Despite the news release and posted losses, some are skeptical regarding the legitimacy of ICBC’s claims.

‘’How can an insurance company, that’s being properly managed, go from saying three months ago that basic insurance would suffer a $200 million loss to now, apparently, $1.3 billion?’’ John Rice, co-chair of the Trail Lawyers Association of BC’s ICBC committee, said.

With such discrepancy between what was initially projected to what is now being posted, Rice is hoping the auditor general intervenes and conducts an independent audit of ICBC before any policy changes by ICBC take place. Check also how ICBC updated legislation on luxury vehicles.

"smartphone taking picture of front of damaged car"

British Columbia is one of four Canadian provinces (Saskatchewan, Manitoba and Quebec, to an extent, being the others) where the provincial government provides the insurance offerings and do not have private auto insurance markets.

Residents of BC currently pay the second-highest auto insurance premiums in Canada. Only Ontario has higher auto insurance premiums than British Columbia.

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