The decision to acquit the Insurance Company of British Columbia of needing to maintain enough capital reserve to pay for claims is being met with deep concern from the Canadian Taxpayers Federation.
According to CTF, capital reserve funds are the bedrock of insurance companies, as they make sure there is enough money to cover a big wave of claims if needed.
“Private insurance corporations, if they had this kind of lack of funding, they would’ve been shut down years ago by the federal regulator,” says CTF BC Director Kris Sims.
“But ICBC, because it’s a crown corporation, has an endless supply of theoretical money.”
This brings forward two options for ICBC, says Sims.
“Let’s hike up our insurance rates which are already astronomical or get taxpayers to bail it out,” she explains.
“The money still comes from the same person, it’s us, it’s BC drivers. So those options I don’t think are fair.”
BC drivers face the highest auto insurance rates in Canada at over $1,700 per year, according to CTF.
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