ICBC a mess....

Re: ICBC a mess....

Postby my5cents » Nov 1st, 2017, 4:47 pm

LordEd wrote:Will ICBC still be required to insure everyone, or be allowed to do risk based insuring?

The Huffington Post article has nothing to do with ICBC.

ICBC's "risk based insurance" is calculated on the number of liable claims free years of driving a driver has, or the reverse the number of at fault claims.

A person with no driving/claims experience, no matter their sex, age, marital status, pays "base rate". From base rate if they have an at fault claim, they go up a number of steps and pay a surcharge. If they are claims free they accumulate a discount.

The closer one is to base rate the more an at fault claim affects the surcharge. If a person has a full discount, the first at fault claim doesn't cause a surcharge. There's a whole formula.

The entire premise is letting each driver prove themselves either a risk or not. The break comes for the new driver who pays base rate, verses the much higher surcharge private charge, based on age, sex and marital status.

The insurance problem in BC cannot be fixed without a no fault scheme. Even if BC switched to private insurance, the nature of the plaintiff bar and the courts would keep the cost high, until no fault was enacted.

The problem is the high number of pain and suffering claims for minor fender benders, that can't be curbed with anything other than no fault. The best private insurance company in the world would still be required to charge high rates without the implementation of no fault. That's what other provinces have done.

The lawyers, of course don't want this. Anyone who thinks those ads on TV by these ambulance chasers is because they are worried about people's rights, is naïve in the extreme. The plaintiff bar I guess has some weight with the government.

So many say, "I haven't had a claim in <zillion> years, I should be paying way less. Those bad drivers should be paying way way more". There is only so much money in the pot and with the frivolous claims coming in by the car load (no pun intended) even if ICBC drastically increased the surcharge for their "frequent flyers" and young males, and unmarried males, it wouldn't be enough to stop the bleeding.
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Re: ICBC a mess....

Postby Merry » Nov 1st, 2017, 6:05 pm

my5cents wrote:In recent years many provinces, including Alberta, have instituted forms of "no fault" auto insurance. This type of insurance restriction drastically helps auto insurance companies remain profitable, by restricting small tort claims for pain and suffering. The completely different playing field is what now makes it impossible to compare "my friend who lives in AB with the exact same car pays way less" type arguments. (check it yourself)

In my opinion, our provincial government will have to so what most other provincial government have done and institute some form of "no fault" auto insurance in BC.

Which is exactly what they SHOULD do, because I and many others are tired of paying super high premiums just so people can make frivolous claims for minor injuries.

When someone suffers a major trauma as a result of an accident that's one thing, but minor accident claims should be limited to reimbursement of actual expenses, and that's all.
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Re: ICBC a mess....

Postby TimmyE » Nov 1st, 2017, 9:15 pm

The government announced that they will hire PWC to audit 100 files to find out whether there has been fraud.

1. What's the matter with their own staff to do the review or even the Auditor General.
2. 100 files is a small number to look over. Looking at 100 is not going to solve much.
3. There's no limit on PWC's contract. They can bill whatever they want
4. I think they are looking into the wrong place. They should be concerned with the number of high paying managers, whose job should include, making sure no one is ripping off ICBC (#1 above).
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Re: ICBC a mess....

Postby maryjane48 » Nov 1st, 2017, 9:23 pm

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Re: ICBC a mess....

Postby LordEd » Nov 2nd, 2017, 5:48 am

PwC Canada will conduct interviews with current unionized and management staff from ICBC and review industry best practices.
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Re: ICBC a mess....

Postby Rider59 » Nov 3rd, 2017, 11:13 am

bluzcru wrote:ICBC is supposed to be an Insurance company.. so it should act like it. All these intersection improvements and other roadway improvements , signage, etc. being paid with ICBC premiums is wrong. Ill bet if ICBC stuck to the business of insurance and corrected all of its internal problems such as overpaid staff and top heavy management there would be no shortfall.
If these top heavy management are so good and worthy of bonuses, why can't they fix the mess called ICBC.. just saying.
I thing there needs to be a constitutional challenge here.. Private insurance companies should have the right to compete for all insurance business in BC, not just collision and let the people choose their insurer. If ICBC gives them the best value for the buck they will remain in business.. if not.. bye bye. That's only fair.

What I would like to see instead is have ICBC help pay for mandatory retesting every 5 years when one renews their DL.

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Re: ICBC a mess....

Postby LongHaul » Nov 13th, 2017, 2:00 pm

An interesting read. Have to see if the NDP will stop the transfer of "dividends" from ICBC to General Revenue?

Some excerpts from the article.

The recent announcement of a wide-ranging audit at ICBC has a retired government insider recommending a new operation model to make the Crown Corporation viable again.

Richard McCandless blames creative accounting for profits being raided by past governments to cover budget shortfalls, so he’s not surprised ICBC lost more than half $1 billion last year.

“The cost per claim and the number of claims have been going up, especially in the last two to three years, but there are definitely more soft-tissue injuries — better known as whiplash — which are costing policy holders a lot more money in recent years. Every other province in Canada either caps the pay and suffering or doesn’t allow it at all. It’s making a lot of lawyers a pretty good income.”


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