ICBC’s current corporate slogan is “Building Trust, Driving Confidence.” Pair that with this week’s announcement of a $582 million loss for the first six months of the corporation’s fiscal year and one begins to wonder about the confidence part. That loss is being blamed on the rising number and cost of claims.
Laying the blame there is probably the easiest thing to do and the least likely to require a lot of explanation.
ICBC rates are set by the BC Utilities Commission, which is ultimately controlled by the provincial government. That’s the same government that took dividends out of ICBC coffers that could have been invested by the corporation and the profits used to pay insurance claims.
Our provincial government also controls many other facets of this issue. Driver licensing, policing, traffic laws, highway design and maintenance to name a few.
So, who’s in the driver’s seat and where are they taking us? Are we happy with the direction of travel?
There are three ways to reduce this deficit: take in more money, reduce costs and quit running into each other or other things.
No one wants to pay more for their vehicle insurance. This is a relatively immediate consequence and one that we feel acutely. It’s easy to complain about as it’s visible to us all regularly.
Let’s make the high risk driver pay a high risk premium. Ditto for those who actually cause a crash. They should pay more too. Good drivers should pay the smallest premium.
Recently, reducing costs has come in the form of paying less for claims. This is a little more palatable because we’re all better than average drivers and perhaps this isn’t seen as something that will directly affect us. Someone else will pay the price regardless of whether they are the culprit or the victim.
Finally we come to a very complicated problem, how to reduce or eliminate collisions. Vision Zero. The most certain way to reduce insurance rates.
People make mistakes. Despite our best intentions bad things can happen and this is why we buy insurance.
The reduction of these mistakes and the minimization of the consequences of those that do happen will be a long process. Safe highways, safe vehicles, safe speeds and safe users all combine to produce the safe systems of Vision Zero.
I can make a difference immediately if I try. I realize that driving is a team effort, not an individual one. I won’t be selfish and I’ll share the road. I will even try to put others first if there is a need to.