ICBC sees huge savings, yet continues to deny consumers relief during COVID-19
VANCOUVER, BC, Sept. 11, 2020 /CNW/ - Yesterday, the Insurance Corporation of British Columbia (ICBC) announced that it has seen hundreds of millions in savings from reduced claims costs due to COVID-19, yet the crown insurer still refuses to return anything to British Columbians struggling economically through the pandemic.
In its latest financial results for the first quarter of 2020 (the period of April 1 – June 30), ICBC reported:
- $329.5 million in financial savings from reduced claims costs;
- a 37% reduction in claims compared to the same period last year,
- roughly 6,000 fewer claims per week, and;
- a $1 billion improvement in its investment portfolio.
ICBC further disclosed that in July claims were down roughly 20%, and remained down roughly 13% at the end of August.
ICBC's refusal to return COVID-19 savings to its customers stands in stark contrast to private insurers, which across the country have returned an average of $280 per eligible driver. In total, more than $800 million in premium relief has been provided to drivers in provinces with competitive insurance systems.
"Rather than supporting British Columbians in their time of need, ICBC is balancing its books on the backs of drivers in this province," said Aaron Sutherland, Vice-President, Pacific, IBC. "Just next door in Alberta, eligible drivers have received an average of $302 in premium relief in recognition of the fact that claims are down and consumers deserve a share of those savings."
All Canadian insurers are dealing with the same financial uncertainties as ICBC, yet are still providing premium relief to their customers. If ICBC won't provide a rebate or premium relief to BC drivers, its time they were able to buy their auto insurance from a company that will.
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 128,000 Canadians, pays $9.4 billion in taxes and has a total premium base of $59.6 billion.
For media releases and more information, visit IBC's Media Centre at www.ibc.ca. Follow us on Twitter @IBC_Pacific or 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.
SOURCE Insurance Bureau of Canada
Media Contact: Vanessa Barrasa, Manager, Media Relations, 416-550-9062, [email protected]
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