The Insurance Corporation of B.C.’s financial troubles have hardly been a secret for the past several months, but reports released this week show that the crisis appears to be getting worse.
ICBC’s losses this fiscal year are projected to reach $1.3 billion.
The corporation cited a rapid increase in collision numbers and the escalating cost of claims as factors contributing to the heavy losses.
“The number of crashes occurring across B.C. is continuing to escalate year-after-year. As a result, the number of claims we are receiving is growing by thousands each year,” ICBC said in a January 28 news release.
“Financial Dumpster Fire”
On Monday, B.C. Attorney General David Eby called the state of ICBC a “financial dumpster fire”.
Eby blamed the current crisis on the previous BC Liberal government, alleging that they siphoned a billion dollars out of the corporation and then concealed financial problems from the public.
He vowed to make drastic changes to B.C.’s car insurance industry, but ruled out a shift to a no-fault insurance system.
Potential options he suggested instead included capping payouts for minor injuries, improving road safety, and making changes to deductibles for high-risk drivers.
