The Insurance Corp. of B.C. announced Monday it has applied to the British Columbia Utilities Commission to reduce basic insurance rates by an average of 1.9 per cent, effective Nov. 1, 2010.
"Rate changes are mainly driven by claims costs, and fewer crashes help us keep our rates low and stable," said ICBC's President and CEO, Jon Schubert in a media release. "Our customers are the ones to primarily thank for this reduction -- it's their smart driving that has helped us control our claims costs and apply for this rate reduction."
The number of claims filed across the province has been declining in the last three years: 992,000 claims were reported in 2007, as compared to 964,000 in 2008, and 946,000 in 2009, said spokesman Adam Grossman.
ICBC has 3.1 million drivers registered in B.C.
Last year, the insurance provider received $3.7 billion from premiums and a net income of $563 million, said Grossman. During the first quarter of 2010, it has made $155 million. If the 1.9 per cent reduction is approved, ICBC would lose $39 million in premiums. ICBC enacted a 3.3 per cent increase in insurance rates in 2007.
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