ICBC sells its products through a network of 900 private insurance brokers around B.C. (Tom Fletcher/Black Press)

ICBC needs brokers, online renewals ‘not a priority,’ David Eby says

Crashes, court cases driving Crown corporation costs

The notion that the Insurance Corp. of B.C. could save lots of money by shifting to online vehicle insurance renewals is not valid, B.C. Attorney General David Eby says.

ICBC uses a network of private insurance brokers to sell its policies, and they are currently working through major changes as B.C. drivers come in to renew their vehicle insurance under new rules that took effect in September. Those include registering occasional drivers and paying a new risk-based insurance premium calculated on regional and personal accident records.

“Brokers are more important than ever to talk to people through these changes, to understand how listing or not listing somebody on their insurance could affect their insurance pricing and their liability,” Eby said last week. “It’s really important that people be able to talk to a real person. And if ICBC eliminated brokers they’d have to bring that in-house, it would result in very significant hiring of people at a help desk of some kind, to assist people through the online process.”

With ICBC paying hundreds of millions each year to insurance offices for their services, it’s been suggested that moving to online insurance renewals would save big money as the corporation struggles to break even. Eby says that’s not the case.

“It’s not a zero-sum game where you eliminate the brokers and then everything’s free,” Eby said. “If you set up an online renewal system for ICBC, people will have difficulty with it, they’ll have questions about it. You need people to respond to their questions, you need to train them, you need to set up the infrastructure.

“It’s a very significant project. We haven’t done the detailed work yet about how much that would cost, because basically we’ve been plugging the holes in the bottom of the boat right now, getting ICBC’s finances turned around.”

RELATED: B.C. activates speed cameras at high-crash intersections

RELATED: Eby warns trial lawyers about ICBC court challenges

ICBC reports to government show $434 million in commissions to its 900-member Autoplan broker network in 2016-17, up to $490 million in 2018-19.

ICBC pays a flat fee to brokers for selling basic insurance and a sliding scale for optional insurance, where it competes with private insurance companies. Optional commissions were reduced in September from 19.93 per cent to 19 for the lowest-risk optional customers, and from 15.5 to 15 per cent on average, an ICBC spokesperson confirmed to Black Press on Monday.

ICBC’s first quarter results this year suggested it may be getting back into the black, with a net income of $55 million for April through June 2019. That comes after two years of deficits totalling $2.5 billion, and a bailout in this year’s B.C. budget to keep the corporation solvent as it struggles with rising crash rates and legal costs.

Eby said his latest reports show a slight decrease in crash rates for the current year. The NDP government has upgraded intersection cameras at 140 high-accident intersections to run 24 hours a day, and to issue speeding tickets to the owners of vehicles that exceed the speed limit by an undisclosed amount as they pass the cameras. The province has also cracked down on distracted driving, particularly use of phones.

The main reforms to ICBC came earlier this year, as the government brought in a $5,500 cap on “pain and suffering” awards, introduced a civil resolution tribunal to keep minor disputes out of court, and imposed limits on expert witnesses for cases where injured people sue ICBC.

The Trial Lawyers Association of B.C. has challenged all three of those in court, and won a judgment on the expert witnesses that the province may appeal or overturn with new legislation.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

‘Suspicious incidents’ part of reason for surveillance at Langley shooting site

Police are still on scene at an Aldergrove property where a man was shot last month

Long-serving Langley City councillor Jack Arnold dies

Arnold passed away in his sleep on Dec. 11

WHAT’S IN STORE: Langley City getting its sparkle on tonight

From 5 to 9 p.m. Thursday, Dec. 12 a number of downtown merchants are holding a shopping party

Hallmark-famous Santa makes one last stop in Aldergrove

Keith Alton’s 50th year as St. Nick continues on Friday (Dec. 13) at Aldergrove pierogi shop

VIDEO: Langley’s newest high school officially opens

A brief ceremony Thursday morning allowed all the players involved in new school to celebrate

‘British Columbians are paying too much’: Eby directs ICBC to delay rate application

Attorney General David Eby calls for delay in order to see how two reforms play out

VIDEO: Octopus, bald eagle battle after bird ‘bites off more than it can chew’ in B.C. waters

B.C. crew films fight between the two feisty animals in Quatsino off north Vancouver Island

Couple who bought $120k banana duct-taped to wall say artwork will be ‘iconic’

Pair compared it to Warhol’s ‘Campbell’s Soup Cans,’ which was initially ‘met with mockery’

Race to replace Andrew Scheer could be a crowded one

Many familiar faces, such as Maxime Bernier, Jason Kenney, Doug Ford and Kevin O’Leary, have said no

National cold case hunters take on search for missing man last seen in B.C.

Kristofer Couture’s car was found at Chilliwack trailhead in January but there’s been no sign since

Metro Vancouver mayors green light regional business license for ride-hailing

Surrey mayor only member to vote against inter-municipality business license

Owner surrenders dogs chained up outside among scrap metal, garbage to BC SPCA

Shepherd-breed dogs were living in ‘deplorable conditions.’

Most Read