ICBC rates jump 6.4% starting Nov. 1 — higher costs is one reason why but an audit will look into potential operational cost savings.
ICBC operations are under scrutiny this week as the province announces an audit of business practices aimed at cutting waste, overbilling and instituting cost controls.
The audit was announced Wednesday, Nov. 1, the same day that rates for basic insurance coverage increased by 6.4%.
Attorney General David Eby announced that 100 random files will be reviewed and front-line staff will be interviewed to see if changes could be made to make the auto insurer more efficient and hold the line on costs.
"ICBC will not be back on the road to financial sustainability or in a position to provide affordable rates to British Columbians without major changes at every level. These are changes that the previous administration was afraid to confront, and now ratepayers are on the hook for losses in the hundreds of millions of dollars," stated Eby in a press release. "We must act urgently, because major rate increases are not an option."
PwC Canada has been hired to lead the operational review.
Meanwhile, the ICBC rate hikes are expected to add $4.75 a month to the average basic insurance coverage or about $60 per year and are justified by increased costs due to skyrocketing personal injury and vehicle damage claims and more accidents.
