ICBC is reporting both positive and negative financial impacts due to the COVID-19 pandemic.
In an official statement, ICBC explained: “it is too early to determine whether the pandemic will result in benefits to pass on to drivers.”
“There are more than 10 months to go in the fiscal year and many unknowns, but if ICBC’s bottom line ends up better than expected, any surplus will be used to benefit B.C. drivers,” said Attorney General David Eby.
ICBC says that any potential savings will be passed on to customers through long-term rate reductions, one-time direct relief, or both.
A report on the impact of COVID-19 in the six weeks after the declaration of the provincial state of emergency found that:
- ICBC opened 46% fewer accident claims compared to the same time last year, with an average weekly reduction of 7,200 claims. This resulted in $158 million in savings.
- More than 150,000 customers changed their policies via cancellation (103,700) or lowering their rate class *57,561), resulting in a projected loss of $238 million.
- ICBC has seen a decrease in the value of its investment portfolio due to the downturn in financial markets, and this impact could exceed $1 billion in the 2020-21 fiscal year.
Ultimately, ICBC’s long term financial health remains in flux as the landscape of financial markets continues to shift.
ICBC’s transition to a care-based model resulted in no basic rate change this year, the lowest in nearly a decade.
More information, including the full statement, can be found online.
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