Province releases Impacts of COVID-19 on ICBC report

VANCOUVER, B.C. – The Provincial Government has released a review of ICBC’s financial situation since the start of the provincial state of emergency, showing both the positive and negative financial impacts on ICBC’s bottom line.

According to the Attorney General, David Eby, with almost no capital reserves to withstand fluctuations and volatility in the markets, it is too early to determine whether the pandemic will result in benefits to pass on to drivers.

“ICBC is in a challenging position due to the pandemic, faced with uncertain and unprecedented turmoil in the markets, combined with no financial buffer as a result of the old government’s mismanagement. 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. In the meantime, we’re focused on supporting people through payment deferrals and making it easier for people to cancel or change their insurance, and on bringing in Enhanced Care coverage next year to save people an average of $400 on their insurance.”

The Province says, if ICBC’s net income results are better than forecast for 2020-21, any additional net income will benefit customers. Any decisions on the use of additional net income of ICBC for the year due to lower claims resulting from the pandemic will be made at the end of the fiscal year.

Options could include rebuilding the financial capital health of ICBC to reduce longer-term pressure on rates, providing a one-time direct relief to customers or any combination thereof.

The full pandemic impact report can be found on ICBC’s website.