ICBCsa国际传媒檚 monopoly on B.C.sa国际传媒檚 vehicle insurance market and impact of climate change were the focus of a submission by the Insurance Bureau of Canada before the provincial select standing committee on finance and government services on Thursday in Kelowna.
Aaron Sutherland, vice-president of the Insurance Bureausa国际传媒檚 Pacific region, said B.C. residents are both paying excessively high rates for vehicle insurance compared to other provinces, and are incurring huge damage costs related to floods and wildfires initiated by weather pattern changes.
sa国际传媒淲ith climate change, we see warmer winters and hot and dry summers in B.C. The last two years we have seen record flooding and wildfires,sa国际传媒� Sutherland said.
sa国际传媒淪ince 2009, property damage losses have been at or above $1 billion across B.C.sa国际传媒�
Sutherland said since the insurance industry assumes the cost for much of that damage, he called on the province to invest more money in infrastructure protection measures against flooding.
sa国际传媒淲e have seen some steps taken in that direction but we need to go a lot further,sa国际传媒� Sutherland said.
He also raised concerns about the potential damage if a long-predicted major earthquake strikes B.C., saying only about 45 per cent of provincial residents have earthquake insurance.
sa国际传媒淥f that 45 per cent, it increases to 60 per cent just within the Vancouver market and 70 per cent on Vancouver Island. But overall, that leaves close to one-half of the market who will need assistance if an earthquake occurs and that is a concern,sa国际传媒� he noted, saying the government will be called on to help off-set the damage costs.
sa国际传媒淪o continuing public awareness is key and educating people to be prepared.sa国际传媒�
Sutherland was one of a more than 20 organizations given a five-minute opportunity to make their pitch about what the provincial government priorities should be in the 2019-20 budget.
The select standing committee is chaired by Maple Ridge-Mission MLA Bob Dsa国际传媒橢ith and includes among its six MLAs Liberal Dan Ashton of Penticton.
Similar meetings are being held by the committee across the province, with a final report submitted to the legislature in November.
Many of the speakers focused on the issues of post-secondary education, health, and youth and family services.
Sutherlandsa国际传媒檚 argument about ICBC centred around a Crown agency monopoly shutting out the private insurance marketplace from competition, which has made it slow to react to changing marketplace conditions and rising operating deficits.
sa国际传媒淪ome reforms are coming for ICBC but none of them address the issue of the affordability challenge for drivers facing escalating insurance rates. Double digit increases are coming in the years ahead,sa国际传媒� he said.
And he said the B.C. bad drivers argument doesnsa国际传媒檛 hold water, noting that in Alberta there are more accidents per capita but basic insurance rates are more than $400 cheaper.
He said ICBC is losing money despite having a monopoly because of operating inefficiencies and a lack of innovation in the marketplace, demands that private insurers respond to quicker to remain in business.
sa国际传媒淎 bad system is failing and itsa国际传媒檚 time to look outside for other solutions,sa国际传媒� he said.
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barry.gerding@blackpress.ca
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