B.C. Attorney General David Eby announces changes to ICBC rate structure to respond to deficits, Feb. 6, 2020. (B.C. government)

ICBC saves on crashes, but investments down due to COVID-19

Too early to tell if savings will result in reduction, David Eby says

The Insurance Corp. of B.C. has seen 46 per cent fewer accident and injury claims compared to last year due to the COVID-19 pandemic, but the impact on the B.C. auto insurance company’s bottom line is still unknown.

Attorney General David Eby and ICBC president Nicholas Jimenez released a report May 14 showing that 103,000 policies have been cancelled, and 57,000 vehicle owners lowered their coverage or switched to storage insurance as they were parked for the pandemic.

The drop in accident and injury claims during the seven weeks COVID-19 restrictions on travel and commuting have been in place represent a $158 million decrease over the same period last year, Jiminez said. But Eby warned that with ICBC having no capital reserves and $1 billion losses in the past two years, it is too soon to tell what the impact on the corporation will be as its investments take a beating in the world-wide slump.

“What we’re seeing is uncertainty,” Eby said. “It could be terrible, or there could be a significant surplus.”

ICBC’s report on COVID-19 examined a period from March 15 to May 2 after the provincial state of emergency was declared and people were advised to stay home. It found that after the initial public health measures, accident and injury claims fell sharply but have started to rise again.

RELATED: ‘Fault matters,’ Horgan says as BC takes disputes out of court

RELATED: ICBC surpluses should be ‘hands off’ to politicians, Eby says

Eby said amendments that were not passed as the B.C. legislature shut down due to COVID-19 are expected to be approved when it sits again, likely in June. That will prevent any future government from diverting ICBC surpluses if and when they return.

“ICBC has seen a decrease in the value of its investment portfolio due to the unprecedented downturn in financial markets, putting pressure on the bottom line,” the report found. “Some of this has already been seen at the end of ICBC’s 2019-20 fiscal year, and early indications suggest the impact could exceed $1 billion in 2020-21, depending on the length and scope of the global market downturn.”

Early in the pandemic, ICBC announced a 90-day deferral of payments and waived cancellation and re-plating fees for people taking vehicles off the road due to restrictions on business and personal travel. The cancellation and waiving of plate fees has saved customers around $5 million, Jiminez said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

CoronavirusICBC

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Comments are closed

Just Posted

Stelly’s grads shocked after ‘anonymous friend’ pays for dinner

Friends took limo to Deep Cove Chalet to celebrate after graduation festivities cancelled

Victoria man in custody after shooting in 100-block of Gorge Road East

The man is facing recommended charges including assault with a weapon

Victoria Royals draft dynamic Danish forward for tentative fall season

Marcus Almquist drafted to Victoria after international tournaments

Undercover operation exposes prominent human trafficking problem in Greater Victoria

VicPD’s Operation No More took place in mid-June at a local hotel

Book stores in Victoria notice uptick in sales for anti-racism titles

White Fragility, How to be an Antiracist are among the best selling titles

‘This year is unlike any other’: Trudeau delivers Canada day address

Sophie Gregoire Trudeau and the Prime Minister release video celebrating the national holiday

No doctor assisted death allowed at Hamlets in Duncan

Faith-based company that owns facility believes in sanctity of life

Canadian engineer detained in Egypt released, needs treatment, family says

Yasser Albaz was detained at the Cairo airport after a business trip in February of 2019

RCMP arrest armed man on grounds near Trudeau residence

Officers descended on the sprawling estate Thursday morning.

Canada Day tractor incident kills three children, injures seven in Quebec

The tractor driver has been arrested following the accident

Longtime Vancouver Island fishing family hooks into local market over wholesale

Locally caught fish are scarce in fishing towns, an irony one Sointula family is working to change

Tsilhqot’in Nation demands meeting with feds on declining Fraser River chinook stocks

The Nation wants to partner with DFO to rebuild and recover the stocks

Gov. General honours Canadians for bravery, volunteer service

Five categories of winners presented on Canada Day

COVID-19: Should non-medical masks be mandatory in Canada?

New poll shows Canadians are divided on the rules around mandatory masks

Most Read