ICBC reported Friday, that it has posted a net loss of $582 million for the first six months of the current fiscal year (April 1 to Sept. 30, 2018).
According to a statement from the Crown insurer the loss is 香蕉视频直播渞eflective of the continued pressure ICBC is under from the rising number and cost of claims香蕉视频直播�.
Attorney General David Eby went on to say that the primary reasons are higher bodily injury costs, as well as claims taking longer to resolve, which often result in higher claims costs. A key driver of these costs is a growing trend toward plaintiff lawyers strategically building the value of the claim 香蕉视频直播� costs which have to be paid for by ICBC ratepayers.
香蕉视频直播淔or too long, financial problems at ICBC were ignored and hidden from the public, resulting in a $1.3-billion net loss in 2017-18. Unfortunately, ICBC香蕉视频直播檚 second-quarter results for 2018-19 show that its financial position remains serious,香蕉视频直播� said Eby.
香蕉视频直播淭hese trends are becoming more severe. Since March 2017, the dollar value of settlements demanded by plaintiff lawyers for litigated files increased by 27 per cent . The average cost of closed litigated injury claims for the first six months of ICBC香蕉视频直播檚 fiscal year rose from $100,427 in 2017 to $121,686 in 2018, a 21 per cent increase. Plaintiff counsel are also spending more to build their files, increasing their average cost of experts and reports by 20 per cent.香蕉视频直播�
Read more:
Read more: ICBC claims hit 4,200 after acid spills on B.C. highway
Read more: ICBC warns shoppers of the high-accident season at mall parking lots
ICBC香蕉视频直播檚 net claims incurred for the first six months of its fiscal year alone topped $3 billion, an increase of $634 million, or 26 per cent, over the same period last year.
香蕉视频直播淕iven this situation, we are looking for ways to accelerate and add to our efforts to solve the financial problems at ICBC,香蕉视频直播� added Eby.
香蕉视频直播淓arlier this year, our government announced a suite of product changes to stem ICBC香蕉视频直播檚 losses, provide enhanced care for people injured in crashes and to make insurance rates fairer. As a result of these changes, ICBC is projecting net savings of $1 billion annually. However, we won香蕉视频直播檛 start seeing these savings until after most of the reforms take effect, starting April 1, 2019, after which we can expect more dramatic financial improvement.香蕉视频直播�
This significant financial loss comes after ICBC reported a net loss of $1.3 billion for its 2017/18 fiscal year, and means ICBC is now projecting to report a year-end financial net loss of $890 million for 2018/19.
香蕉视频直播淚t is now clear that this government needs to look for even more ways 香蕉视频直播� beyond what is already planned 香蕉视频直播� to further reduce the escalating cost of claims,香蕉视频直播� said Eby.
香蕉视频直播淥ur government is making different choices that will stem ICBC香蕉视频直播檚 losses. We will continue to monitor ICBC香蕉视频直播檚 financial situation and we are taking steps toward making B.C.香蕉视频直播檚 auto insurance system work for people again.香蕉视频直播�
ICBC states that there are no signs that the ongoing and increasing claims cost pressures ICBC is experiencing, will abate without the major reform to the auto insurance product in British Columbia which government and ICBC are implementing.
香蕉视频直播淲hile our current financial pressures are clearly serious, they have been caused by an auto insurance system which has long been in need of substantial modernization 香蕉视频直播� something that is now, at last, happening,香蕉视频直播� writes the auto insurer.
香蕉视频直播淭hese changes will shift the focus away from maximizing payouts to a care-based system 香蕉视频直播� which makes taking care of people injured in a crash the top priority, with more money for the treatments and support they need to get better and less spent on legal costs.香蕉视频直播�
The government and ICBC are also modernizing ICBC香蕉视频直播檚 30 year-old insurance system to ensure all drivers pay premiums which more accurately reflect the risk they represent on the road.
In addition, a number of road safety initiatives are underway, aimed at lowering crashes and mitigating the current financial pressures on ICBC.
The growing claims costs pressures ICBC is facing will also need to be addressed with the next basic rate application which is due with the British Columbia Utilities Commission by December 15.
To report a typo, email:
newstips@kelownacapnews.com.
carmen.weld@bpdigital.ca
Like us on and follow us on .
