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The auto insurance crisis in British Columbia

by

Hubert Roy

6 September 2017, 07:00

Automobile insurance is an electoral issue in several canadian provinces. British Columbia is added to the list of provinces for which this is the case.

A report from consulting firm EY has thrown fuel to the fire at the end of July in this Western province. The report reveals that the insurer Insurance Corporation of British Columbia (ICBC), which issues automobile insurance, of the major problems in structures which endanger its sustainability.

This revelation comes in the wake of an election campaign, which leaves the parliament of British Columbia is divided. The liberal government, led by the first outgoing minister , Christy Clark, has won the vote. However, he lacked a seat to win a majority of seats.

She has formed a government, which was overthrown by the opposition, led by John Horgan, New democratic Party of British Columbia, supported by the Green Party. Ms. Clark has requested the lieutenant-governor of the province, Judith Guichon, to hold new elections. She refused, asking Mr. Horgan if he was able to form a government. He agreed, on the strength of 41 mps from his party and the support of the three mps of the green Party, forming a coalition. It has a majority of just one seat. He took the power, while large parts of the territory of British Columbia, are the prey of violent forest fires, which have forced the evacuation of more than 40 000 people at the height of the cataclysm.

The existence of the report, EY has been unveiled in the wake of these events. Media regional of British Columbia has revealed the existence of the report, quoting a few passages. This media has indicated that the cost of automobile insurance in British Columbia is expected to increase 30 % in the next two years, ensuring that British Columbians may have to pay on average a little more than $ 2,000 to get a automobile insurance coverage by 2019.

The report in question was commissioned in December 2016, by the previous liberal government. EY has delivered the liberal government on July 10, four days before he lost the confidence of parliament. Knowing that the report had leaked in the media, the ndp government has requested that the board of directors of ICBC to make public the 195 pages of the report.

It shows, however, that the problems are greatest. It reveals that the premiums that bill ICBC are not sufficient to cover its claims. In its current form, the structure of ICBC is not sustainable, says EY. ICBC is said to have taken note of the report and said they want to work to find solutions with the government for the benefit of British Columbians.

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