Automobile insurance rates hold steady in British Columbia

The British Columbia Utilities Commission (BCUC), which regulates British Columbia’s energy utilities, basic automobile insurance rates and intra-provincial pipeline rates, has approved a zero per cent rate change for Insurance Corporation of British Columbia (ICBC) basic automobile insurance rates, effective April 1, 2023 until the BCUC completes its public review of the ICBC’s 2023 revenue requirements (rates) application.

“This will include a review of ICBC’s claims cost and the forecast operating expenses for policy year 2023, and ICBC’s proposed changes to performance measures and other reports,” the regulator writes in its January 10 statement.

They add that the BCUC will review the rate application in accordance with the Government of British Columbia’s Order in Council, directing the regulator not to decrease ICBC’s basic insurance rates for the 2023 policy year. It also directs the regulators to exempt the crown corporation from being required to apply for a general rate change, scheduled for December 2023. (According to regulatory amendments, the ICBC must submit a general rate change application every year unless otherwise directed.)

“ICBC must make basic insurance available in a manner that the BCUC considers to be adequate, efficient, just and reasonable. The BCUC must also follow government directives when regulating and fixing rates using the factors, criteria and guidelines provided. The BCUC does not regulate optional automobile insurance,” they add.

According to the BCUC, the ICBC filed its application for the zero per cent rate change in December 2022. They say the ICBC stated at that time that the requested rate change was based on the combined effect of actuarial analysis and the legislative framework established by the government.

“ICBC also proposes changes to certain performance measures and other reporting to the BCUC,” they add.

Those requesting intervenor status to participate in the proceeding must apply by January 30, 2023. Interested parties can also submit letters of comment regarding the application with the BCUC.