BC Conservatives Demand Better for ICBC
The BC Conservative Party demands better for the Insurance Corporation of British Columbia (ICBC), by reforming it in order to reduce insurance rates for BC drivers.
This week ICBC posted a net loss of $935 million for first nine months of the fiscal year. The public auto insurer is projected to have a $1.3 billion net loss this fiscal year. Attorney General David Eby referred to the mess at ICBC yesterday as a "financial dumpster fire".
Over years of mismanaging ICBC, the Liberals siphoned off over $1 billion in excess profits from ICBC in order to tell British Columbians that they had balanced the province’s budget. A recent report by Ernst & Young found that the average driver in B.C. may need to pay almost $2,000 in annual total premiums for auto insurance by 2019, an increase of 30 per cent over today’s rates. ICBC itself indicated that rates would need to increase by 42 per cent over the next five years to make up for expenses.
"ICBC has turned into a train wreck and a national embarrassment," said Scott Anderson, Interim Leader of the BC Conservatives. "The Liberals used it as a piggy bank and the NDP's answer is to raise rates, just as they plan to raise taxes. Neither one is acceptable."
The BC Conservatives will turn ICBC into a co-operative, ensuring that BC drivers who pay premiums will be the ones who own the organization. A co-operative will work in drivers’ best interest, rather than serving the government of the day.
The BC Conservatives will also open the industry to private competition, to help drive rates lower.
British Columbia has a well established, profitable, strong, and well managed co-operative movement. BC is home to three of the five largest credit unions in Canada, plus a co-operative that is the largest supplier of outdoor equipment in Canada.
“We agree with the Canadian Taxpayers Federation that ICBC should be turned into a co-operative owned by BC drivers,” said Anderson. “Competition also must be opened up to private companies for basic insurance in order to reduce insurance rates for everyone. It is completely unacceptable that BC drivers now pay the highest insurance premiums in Canada!”
“One may view ICBC as a dumpster fire. While the Liberals may have set that dumpster on fire, I’d like to remind the NDP that they gave BC that dumpster in the first place. Conservatives demand better to ensure that BC drivers no longer pay the highest insurance rates in Canada. The way to do that is to turn ICBC into a co-op and open up basic insurance to competition,” concluded Justin Greenwood, Interim Deputy Leader of the BC Conservatives.
For more information:
Scott Anderson, Interim Leader, BC Conservative Party
Telephone: (250) 434-2550 | http://www.bcconservative.ca/