February 16, 2018 11:00
Photo : Freepik
Open the motor insurance market to private insurers would reduce the cost of the average premium in encouraging competition between insurers, reveals a report commissioned by the insurance Bureau of Canada (IBC) and prepared by the consulting firm MNP LLP. The TRAY then asked the province to open up its market to private insurers.
In British Columbia, auto insurance is entirely public. The monopoly of the market is held by theInsurance Corporation of British Columbia (ICBC). In comparison, in Québec, the State covers only the bodily injury via the Société de l’assurance automobile du Québec (SAAQ).
Possible savings for drivers
«If we compare with other areas, the intensification of competition in the automobile insurance market would enable consumers to have access to discounts and savings that do not currently exist in British Columbia,» says Susan Mowbray, senior economist of MNP LLP.
The report indicates that to combine the home insurance and automobile insurance may allow drivers to save between $ 85 and $ 225 per year. The basic plans could reduce from $ 18 to $ 40 $ annually and the option products would fall from $ 24 to $ 60 annually.
The report adds that with the arrival of competition in the environment, insurers could offer customers new products. The document gives as an example that a premium car based on different risk factors, such as the history of loss and the distance travelled, would allow good drivers a reduction in their premium of up to 18 %.
The predicted increase by ICBC
In November last year, ICBC had announced an increase of 6.4 % of the premiums for basic auto insurance, equivalent to an average increase of $ 130 per year. «The motor insurers’ canadians are ready to bring choice and savings to the drivers of British Columbia, » concludes the vice-president, Pacific, FERRY, Aaron Sutherland.