ICBC is submitting an application to increase its basic insurance rates by 6.3 per cent.
The insurance corporation will submit its basic rate application with the British Columbia Utilities Commission on December 14, but they must be approved before they move forward. If approved, the new rates would come into effect on April 1, 2019.
Although they are asking for an increase to basic rates, they state that the increase would been almost 40 per cent if not for major reforms being introduced to B.C.'s auto insurance system.
Right now, the auto-insurance provider is projecting a net loss of $890 million for its current fiscal year. What's more, they expect that figure to grow as the volume and severity of claims increases.
They cite that injury claims are the single biggest factor impacting rates. In the past five years, for example, injury claims costs have soared by 43 per cent. In 2018 alone, injury claims costs will represent $3.67 billion.
"The changes being made at ICBC today are arguably the most substantial in the corporation's long history and to the auto insurance industry as a whole in this province," said Nicolas Jimenez, president and CEO at ICBC.
"While we acknowledge no rate increase is welcome news, it is encouraging to see these major reforms already having an impact on our insurance rates. The next year will be a very important one for us – our job is to ensure our customers continue to see the benefits of these massive changes on both the rates they pay and the care and benefits they receive."
The auto-insurance provider adds that without the new reforms to the system every vehicle owner in the province would be faced with an approximate $360 increase to their basic insurance rates.