B.C. has the most expensive auto insurance in the country and should be looking at opening up to competitors, says Aaron Sutherland of the Insurance Bureau of Canada (IBC).
Sutherland is IBC’s vice-president for the Pacific Region and will be speaking at the Williams Lake and District Chamber of Commerce meeting Thursday, April 26.
“One big difference between B.C. and other provinces is that our Crown insurer has the monopoly and in other Canadian provinces we have an open market place with competition and choice where drivers can shop around for the best auto insurance products that meet their needs,” Sutherland told the Tribune.
Sutherland plans to discuss the issue with the chamber, particularly about some of the challenges in B.C. that the government is addressing.
“A lot of those discussions are long overdue,” he said. “The one big thing missing from government’s action is if we should be looking at and seeing if another company can do things differently and provide auto insurance more effectively and more affordably.”
There have been eight reviews of the Insurance Corporation of B.C. (ICBC) in the last five years ordered by government and all of them have excluded an exploration of competition, Sutherland said, noting IBC hired a consultant to explore what the benefits of competition would be.
“Surprisingly they found drivers could save up to $325 annually,” he added. “They found you could bundle your home and auto insurance, spread risks and save money.”
The consultant also found that private insurers have brought in innovations in other Canadian provinces, such as usage-based insurance so people pay based on how far they drive, rather than a set price.
IBC is a national association of home, business and auto insurers.
“In Alberta, it’s a competitive market place and drivers have the capability to shop around, and they pay on average $500 less than drivers pay in B.C,” Sutherland said, noting he is looking forward to meeting with chamber members later this week.
His visit to Williams Lake is part of an effort to reach out to communities.
“We are doing a bit of a tour. I was in Prince George last week and have also reached out to Quesnel and 100 Mile House, but haven’t heard back yet.”
The IBC is expecting big changes in auto insurance this spring and Sutherland said it is timely and long overdue.
“We think it’s important to take a holistic point of view. We know competition can’t solve all the problems in B.C. but it is a critical part of any solution and needs to be considered more than it has been,” he added. “In other jurisdictions drivers have choice.”
Read More: ICBC reform aims to slow rising car insurance costs
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