ICBC gains approval for premium rate increase

B.C.’s Utilities Commission has approved a 0.4% increase in the premium rate for mandatory auto insurance made available through crown insurer, the Insurance Corp. of British Columbia (ICBC). ICBC says it will also increase optional insurance coverage rates by 0.4%, with the increases on both classes of business introduced in reaction to changes in the province’s premium tax.ICBC also applied to the B.C. Utilities Commission for an additional 0.9% increase in mandatory auto rates in response to the higher court tariff cost currently under consideration by the B.C. Supreme Court’s rules revision committee. The commission declined approval for the higher rate on grounds that there remains too much uncertainty over the increased court tariff.ICBC says that its 0.4% rate rise will result in about 95% of policyholders incurring a cost of $10 or less. The crown insurer’s new auto rates take effect from the beginning of next year.