VICTORIA, B.C.- The Insurance Corporation of British Columbia (ICBC) is projected to post a $1.3 billion operating loss at the end of this fiscal year.
B.C.’s Attorney General, David Eby, called the state of ICBC a “financial dumpster fire” on Monday morning.
Eby said the provincial government plans to look at long-term fixes to get the auto insurer under control.
In his address this morning, he noted that there will be no short-term fix and major reforms would be announced in the spring.
He said that British Columbia will not switch to a no-fault insurance system.
Instead, he is looking to place caps on payouts for minor injuries, make changes to deductibles for high-risk drivers and improve road safety.
This weekend, it was revealed that the public auto insurer had built up more than $900 million in net losses between April 1st and December 31st of last year.
In September, the corporation announced an average annual raise in rates of eight per cent, which translates to approximately $130 per year, per driver.