The Consumers’ Association of Canada today called on ICBC to immediately reduce auto insurance rates in response to ICBC’s record profits announced Friday. “Over the last three years ICBC has generated two thirds of a billion dollars in profits. It is scandalous that rates are not going down, especially for good drivers”, said Mr. Bruce Cran, national President of the Association.

ICBC’s mandate is to serve BC consumers by delivering the lowest possible rates to BC drivers. “That’s its mandate, serve the consumer, but clearly it’s decided to no longer do this”, said Mr. Cran.

The irony of the auto BC insurance situation is that in Ontario private auto insurers who have just reported record profits are falling over themselves to claim they are reducing rates”, said Mr. Cran. “Meanwhile In BC, the non-profit ICBC is reporting record profits and won’t give up any of these profits to its customers. The question is why?”

“The reason is that ICBC has again become a political pawn of the Provincial Government”, said Mr. Cran.

The Government has ordered ICBC to generate massive profits so that it can build up its financial reserves in order to compete with private insurers. Are consumers supposed to accept that in the topsy-turvy world of ICBC the corporation must generate super profits off the backs of BC drivers in order to build up reserves to more effectively compete with private insurers?

“I don’t know of a more bizarre idea – keep rates artificially high in order to convince BC drivers that Private Insurance Companies can compete”, said Mr. Cran.

ICBC is picking the pockets of BC drivers for at least $500 million in order to finance this crazy scheme of the BC government”, said Mr. Cran. “In fact, it is even possible that ICBC will soon seek rate increases to pay for this bizarre idea”.

“ICBC has a mandated obligation to consumers to reduce rates now”, said Mr. Cran.

For more information contact:
Mr. Bruce Cran, President, Consumers’ Association of Canada,
Tel. (604) 418-8359