B.C. Attorney General David Eby announces changes to ICBC rate structure to respond to deficits, Feb. 6, 2020. (B.C. government)

B.C. Attorney General David Eby announces changes to ICBC rate structure to respond to deficits, Feb. 6, 2020. (B.C. government)

ICBC saves on crashes, but investments down due to COVID-19

Too early to tell if savings will result in reduction, David Eby says

The Insurance Corp. of B.C. has seen 46 per cent fewer accident and injury claims compared to last year due to the COVID-19 pandemic, but the impact on the B.C. auto insurance company’s bottom line is still unknown.

Attorney General David Eby and ICBC president Nicholas Jimenez released a report May 14 showing that 103,000 policies have been cancelled, and 57,000 vehicle owners lowered their coverage or switched to storage insurance as they were parked for the pandemic.

The drop in accident and injury claims during the seven weeks COVID-19 restrictions on travel and commuting have been in place represent a $158 million decrease over the same period last year, Jiminez said. But Eby warned that with ICBC having no capital reserves and $1 billion losses in the past two years, it is too soon to tell what the impact on the corporation will be as its investments take a beating in the world-wide slump.

“What we’re seeing is uncertainty,” Eby said. “It could be terrible, or there could be a significant surplus.”

ICBC’s report on COVID-19 examined a period from March 15 to May 2 after the provincial state of emergency was declared and people were advised to stay home. It found that after the initial public health measures, accident and injury claims fell sharply but have started to rise again.

RELATED: ‘Fault matters,’ Horgan says as BC takes disputes out of court

RELATED: ICBC surpluses should be ‘hands off’ to politicians, Eby says

Eby said amendments that were not passed as the B.C. legislature shut down due to COVID-19 are expected to be approved when it sits again, likely in June. That will prevent any future government from diverting ICBC surpluses if and when they return.

“ICBC has seen a decrease in the value of its investment portfolio due to the unprecedented downturn in financial markets, putting pressure on the bottom line,” the report found. “Some of this has already been seen at the end of ICBC’s 2019-20 fiscal year, and early indications suggest the impact could exceed $1 billion in 2020-21, depending on the length and scope of the global market downturn.”

Early in the pandemic, ICBC announced a 90-day deferral of payments and waived cancellation and re-plating fees for people taking vehicles off the road due to restrictions on business and personal travel. The cancellation and waiving of plate fees has saved customers around $5 million, Jiminez said.


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

CoronavirusICBC

Just Posted

Shortreed Elementary received $40,000 from the Indigo Love of Reading foundation to purchase new books. (Special to The Star)
VIDEO: Shortreed one of 30 Canadian schools aided by Indigo’s Love of Reading program

Aldergrove school received $40,000, which will be put towards new books for the library

Students staged a flash mob on the last day of dancing at Lisa’s School of Dance in Langley City on Saturday, June 19. (Dan Ferguson/Langley Advance Times)
VIDEO: Final dances held at Lisa Dew’s dance school in Langley City

After 35 years, the school has been forced to close due to the bottom-line impact of the pandemic

Jessica Horst, a volunteer with the Bertrand Creek Enhancement Society, picked Scotch Broom at Jackman Wetlands on Wednesday night. (Lisa Dreves/Special to The Star)
Scotch broom removal a big task six years in the making at Jackman Wetlands

Volunteers filled a truck-full of invasive shrub growing rampant in Aldergrove park

Health and safety protocols for arriving international travellers are strict and don’t consider reasons for travel, says a letter writer. (Black Press Media files)
LETTER: Langley performer irked by ever-changing, inconsistent COVID rules

Letter writer feels she had not choice but to move to Mexico to ride out pandemic

A fawn separated from his mother by a well-meaning homeowner in Maple Ridge is a cautionary tale, say Conservation officers and staff at Langley’s Critter Care wildlife sanctuary. (Critter Care/Special to the Langley Advance Times)
Maple Ridge fawn in Langley wildlife sanctuary after separation from mother

Wildlife officials say moving a fawn is not a good idea

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

A portion of the George Road wildfire burns near Lytton, B.C. in this Friday, June 18, 2021 handout photo. THE CANADIAN PRESS/HO, BC Wildfire Service *MANDATORY CREDIT*
Blaze near Lytton spread across steep terrain, says BC Wildfire Service

Fire began Wednesday and is suspected to be human-caused, but remains under investigation

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

(Black Press Media files)
Burnaby RCMP look for witnesses in hit-and-run that left motorcyclist dead

Investigators believe that the suspect vehicle rear-ended the motorcycle before fleeing the scene

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

RCMP crest. (Black Press Media files)
Fort St. John man arrested after allegedly inviting sexual touching from children

Two children reported the incident to a trusted adult right away

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

Most Read