B.C. Attorney General David Eby is responsible for ICBC. (Spencer Chandra-Herbert/Twitter)

B.C. Attorney General David Eby is responsible for ICBC. (Spencer Chandra-Herbert/Twitter)

ICBC willing to loosen grip on driver claim data, David Eby says

Private insurers say claims record monopoly keeps them out

As B.C. drivers face the new reality of risk-based insurance rates for their vehicles, and the higher rates that often go with it, private insurance companies are renewing their call for the Insurance Corp. of B.C. to loosen its hold on driver and accident records to allow more competition.

ICBC faces few competitors for optional insurance, covering collision and other risks beyond required basic liability insurance, said Aaron Sutherland, vice-president of the Insurance Bureau of Canada. The key reason is that ICBC won’t share its claims data directly with competitors, as happens in other provinces, he said.

Sutherland was responding to Attorney General David Eby’s challenge, reported by Black Press Media last week, that private insurers should step up with better deals for new drivers who are facing big increases in optional insurance coverage.

“In B.C., ICBC holds that driving record and they won’t share it,” Sutherland said in an interview. “They know that if other insurers could get access to this, they could better price. You would have more insurers coming to B.C., and you would start to see ICBC’s market share get whittled away.”

RELATED: New drivers pay most for optional coverage, Eby says

RELATED: Premer Horgan regrets big ICBC increases for young people

Eby said Tuesday he supports the idea of increased competition, as young drivers in particular find their rates going up as much as 12 per cent for basic insurance and in some cases more for optional coverage.

Eby defended ICBC’s current practice of requiring drivers to retrieve their own “driver abstract” or claims history from ICBC’s website, and sharing it with private insurers to get a quote on optional coverage. ICBC allows drivers to get it themselves or enter the e-mail address of a competing insurer so it can go directly there, he said.

Eby said he has no problem with opening driver history up to direct access by private insurers, but there has been no “policy work” done so far to make that change. And he questioned whether making drivers doing their own research is the problem.

“I do believe that private insurers don’t actually find it profitable to compete in B.C. because it’s an expensive place to write insurance,” Eby told Black Press. “If there were money to be made here, writing cheaper insurance for inexperienced drivers, which they keep issuing press releases [saying] is the case, they would be doing it, even if it was a bit of a pain for people to get.”

Eby said if the issue was so pressing for private insurers, they would have brought it up before. Sutherland responded by copying Black Press with a letter he sent to Eby on Sept. 10, 2018. (See letter below.) The letter offers to pay ICBC an administrative fee for direct access to ICBC’s database.

“In other provinces, private insurers pay between approximately $9 and $16.50 for driver abstracts,” the letter states, pitching it as a significant revenue opportunity for ICBC as it grapples with soaring costs and deficits.

Eby said the letter “rings a bell” and suggested he will look further into the situation.

Sutherland said there only two significant private insurance competitors for ICBC because customers don’t walk in to their offices with a copy of their claims record in hand. Few people will actually take the trouble to retrieve it from ICBC and share it with a competitor, he said.

The barrier for competition goes beyond individual driver records, Sutherland said. ICBC also holds the only database for high-accident locations, creating a “statistical plan” for each area where an insurance company might offer coverage.

“Other insurers can’t see that, so they don’t really know the marketplace, or the communities in which they’re going to start selling,” Sutherland said. “And then piling on that, you’ve got customers coming in your door, and you can’t verify their driving record, so you’re basically flying blind.”

IBC to Eby 09102018 by Tom Fletcher on Scribd


@tomfletcherbc
tfletcher@blackpress.ca

Like us on Facebook and follow us on Twitter.

BC legislature

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Nikita, a four-year-old German Shepherd that was attacked by a buck in a backyard in Esquimalt Sunday is lucky the injury wasn't more severe. (Photo contributed by Suzette Goldsworthy)
Esquimalt dog owner issues alert after deer injures German shepherd

Nikita needed stitches after an early morning encounter

The Victoria Police Department headquarters. (Black Press Media file photo)
Investigation launched into man’s death after arrest in Victoria

IIO investigation to determine if police actions or inaction played a role in the man’s death

(Black Press Media file photo)
Police arrest man covered in blood on heels of significant Saanich crash into woods

Resident calls in home invasion in progress after crash

Capital Regional District Animal Control say an eight-month-old Rottweiler bit a Langford mother and her child near Glen Lake on Nov. 19. (Black Press Media file photo)
Large dog attacks mother and child in Langford

Mother puts three-year-old on top of car to protect him

Victoria School for Ideal Education at 2820 Belmont Avenue is the second school in Greater Victoria with an active confirmed COVID-19 exposure. (Travis Paterson/News Staff)
Private school becomes second Greater Victoria school with COVID-19 exposure

Victoria School for Ideal Education follows Lakeview Christian School in Saanich

People wearing face masks to help curb the spread of COVID-19 cross a street in downtown Vancouver, on Sunday, November 22, 2020. The use of masks is mandatory in indoor public and retail spaces in the province. THE CANADIAN PRESS/Darryl Dyck
B.C. reports 17 COVID deaths, 1,933 new cases as hospitalizations surge over the weekend

There are 277 people in hospital, of whom 59 are in ICU or critical care

An aerial shot of Cedar Valley Lodge this past August, LNG Canada’s newest accommodation for workers at the project site in Kitimat. This is where several employees are isolating after a COVID-19 outbreak was declared last Thursday (Nov. 19). (Photo courtesy of LNG Canada)
Forty-one positive COVID-19 cases associated with the LNG Canada site outbreak in Kitimat

Thirty-four of the 41 cases remain active, according to Northern Health

Workers arrive at the Lynn Valley Care Centre seniors home, in North Vancouver, B.C., on Saturday, March 14, 2020. It was the site of Canada’s first COVID-19 outbreak in a long-term care facility. THE CANADIAN PRESS/Darryl Dyck
Rapid tests ‘not a panacea’ for care homes, Dr. Bonnie Henry says

B.C. lacks capacity for daily tests of thousands of workers

(Delta Police Department photo)
Cannabis edibles found in Halloween bag lead B.C. police to illegal lab

Delta police arrested a man and a woman while executing a warrant at a residential property Nov. 20

A woman being arrested at a Kelowna Value Village after refusing to wear a mask on Nov. 22.(@Jules50278750/Twitter)
VIDEO: Woman arrested for refusing to wear mask at Kelowna Value Village

RCMP claims the woman was uncooperative with officers, striking them a number of times and screaming

B.C. Liberal MLA Shirley Bond questions NDP government ministers in the B.C. legislature, Feb. 19, 2020. (Hansard TV)
Cabinet veteran Shirley Bond chosen interim leader of B.C. Liberals

28-member opposition prepares for December legislature session

Motorists wait to enter a Fraser Health COVID-19 testing facility, in Surrey, B.C., on Monday, November 9, 2020. THE CANADIAN PRESS/Darryl Dyck
COVID-19: What do rising positivity rates mean for B.C.? It’s not entirely clear

Coronavirus cases are on the rise but the province has not unveiled clear thresholds for further measures

A rider carves a path on Yanks Peak Saturday, Nov. 21. Two men from Prince George went missing on the mountain the next day. One of them, Colin Jalbert, made it back after digging out his sled from four feet under the snow. The other, Mike Harbak, is still missing. Local search and rescue teams went out looking Monday, Nov. 23. (Sam Fait Photo)
‘I could still be the one out there’: Snowmobiler rescued, 1 missing on northern B.C. mountain

As Quesnel search and rescue teams search for the remaining rider, Colin Jalbert is resting at home

Most Read