Competition would bring significant savings to British Columbia's auto insurance market: report
VANCOUVER, Jan. 29, 2018 /CNW/ - Today, Insurance Bureau of Canada (IBC) released a report entitled The Benefits of Competition in the Provision of Automobile Insurance in BC. The report was commissioned by IBC and prepared by MNP LLP.
"Under the ICBC monopoly, drivers in British Columbia are paying the highest auto insurance premiums in Canada," said Aaron Sutherland, Vice President, Pacific, IBC. "This report shows that opening BC auto insurance to competition and choice would bring significant savings to BC drivers and would improve the affordability of auto insurance in British Columbia"
MNP explored how a competitive marketplace for auto insurance would lower premiums and costs for BC's drivers. The report found that Canada's private insurers have developed product innovations and new ways to reduce claims costs that could lower premiums for drivers, if they were allowed to operate in BC. Bundling home and auto insurance alone could save drivers between $85 and $225 annually. Further potential savings to policy holders include:
- Basic autoplan savings between $18 and $40 annually from improved claims handling
- Optional product savings between $24 and $60 annually if Optional insurance were open to full competition
- Safe drivers (who represent a majority of BC drivers) could see their premiums reduced up to 18% from an improved pricing structure that based premiums on factors highly correlated with risk, such as claims history and kilometers driven
"This report demonstrates that increased choice in auto insurance could lead to tangible benefits for the majority of British Columbia drivers," said Susan Mowbray, Senior Economist, MNP LLP. "Based on the experience in other jurisdictions, increasing competition in the auto insurance market would provide consumers with access to discounts and savings not currently available in British Columbia."
"This report offers a glimpse into how competition can benefit BC consumers," added Sutherland. "Given the significant challenges facing our auto insurance system, British Columbians deserve to be able to choose the auto insurance provider that best meets their needs. Canada's private auto insurers are ready and eager to bring choice and savings to BC drivers."
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About Insurance Bureau of Canada
Insurance Bureau of Canada (IBC) is the national industry association representing Canada's private home, auto and business insurers. Its member companies make up 90% of the property and casualty (P&C) insurance market in Canada. For more than 50 years, IBC has worked with governments across the country to help make affordable home, auto and business insurance available for all Canadians. IBC supports the vision of consumers and governments trusting, valuing and supporting the private P&C insurance industry. It champions key issues and helps educate consumers on how best to protect their homes, cars, businesses and properties.
P&C insurance touches the lives of nearly every Canadian and plays a critical role in keeping businesses safe and the Canadian economy strong. It employs more than 120,000 Canadians, pays $9 billion in taxes and has a total premium base of $52 billion.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow IBC on Twitter @InsuranceBureau and like us on Facebook. If you have a question about home, auto or business insurance, contact IBC's Consumer Information Centre at 1-844-2ask-IBC.
If you require more information, IBC spokespeople are available to discuss the details in this media release.
SOURCE Insurance Bureau of Canada
To schedule an interview, please contact: Andrew McGrath, Manager, Media Relations, 416-362-2031 ext. 4312, [email protected]
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