ICBC reports increasing profits and claims costs

The Insurance Corporation of British Columbia (ICBC) has reported strong financial results for the first nine months of 2007, but remains cautious of increasing claims costs.

Net income for the first nine months of 2007 was $526 million, an increase of $142 million compared to last year, with $133 contributed by the sale of the Central City development in Surrey, B. C.

On average this year, for every $1.00 in premium revenue, ICBC’s claims and operating costs have been approximately $1.02.

However, while financial results are strong and customer satisfaction scores are high, ICBC notes there are discouraging numbers on the claims front including increases in the number and the cost of crashes.

“There are too many injuries and fatalities; and too many families are affected by the increase in crashes,” Paul Taylor, president and CEO, ICBC, said in a release. “More claims, more crashes and higher claims costs ultimately translate into higher rates. ICBC believes crashes are preventable and that’s why we’re focusing on getting bad drivers to either change their behaviour or pay more for their insurance.”

There were, according to ICBC, 6,000 more crashes in the first nine months of this year as compared to last year. This is the largest increase in five years. This increase contributed to a 6 per cent increase in the number of claims. •