VICTORIA, B.C. — The Insurance Corp. of B.C. (ICBC) has recorded a net income of $77 million through the first six months of the year, compared to only $9.2 million over the same time last year.
The province’s only insurer is attributing the increase to good spring weather and ongoing cost savings. It also takes into consideration $14 million from the sale of a former claim centre property.
"Our cost reduction initiatives are paying off," said Nick Geer, ICBC president, "and we’ve been lucky with good weather so far this year. The favourable results will allow us to move forward in rebuilding our reserve capital."
Last year’s rate increase of 7.4 per cent and a further rate increase this year averaging 4.8 per cent have resulted in $1.38 billion in premiums compared to $1.27 billion last year. There were also more policies sold this year.
Claims, on the other hand, are basically the same as last year, at about $1.25 billion. The average personal injury claim increased in cost by 9.3 per cent but fewer lower-cost claims were filed due to increased deductibles. Those two factors nullified each other.
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News