ICBC president and CEO Nicolas Jimenez. (Black Press Media file)

ICBC president and CEO Nicolas Jimenez. (Black Press Media file)

LETTER: ICBC boss responds to accusations of failing to adapt

ICBC CEO Nicolas Jimenez responds to column by the CFIB’s Richard Truscott

Re: “COLUMN: ICBC is not just broke, it’s broken” by Richard Truscott of the Canadian Federation of Independent Business, published Aug. 28, 2019

Richard Truscott’s attempts to position ICBC as a company that has failed to adapt and change do not stand up to the facts.

Under government’s direction, ICBC has undertaken the largest reforms in its history this year, including a significant shift to a care-based model with substantially increased benefits for British Columbians and a fundamental change to make our rate model fairer.

RELATED: B.C. limits ‘duelling’ expert witnesses in ICBC injury cases

Under this new model, more than half of our full-coverage customers – those who are safer, lower-risk drivers – will see their rates decrease. This is already showing itself to be true with the early renewals we’ve seen to date.

Drivers will also receive new discounts for driving less and for having their vehicle equipped with safety technology.

Importantly, contrary to Mr. Truscott’s attempts to position this as a negative thing, we’re increasing the rewards for drivers who continue to drive safely year after year. Whereas drivers’ basic discounts were capped at nine years of crash-free driving under the old model, discounts will now continue to get better every year for up to 40 years.

While Mr. Truscott also argues that ICBC “employs twice as many staff as any other Canadian insurer its size,” he fails to acknowledge what everyone knows – that ICBC is far more than just an auto insurer for three million drivers.

We also run the province’s driver licensing system, including road tests; we handle the processing of provincial violation tickets; and we invest millions every year in making our roads safer for hundreds of communities across the province.

Name a private insurer that does – or will – do this. Even when we do more than any other auto insurer would do, we still have operating costs that are significantly lower than the industry average.

While our large financial losses in recent years have made headlines, we are projecting a much smaller net loss this year as our reforms start to make an impact. And while we are optimistic, we are also realistic in recognizing the risks that still exist in these changes having their full desired impact.

For example, trial lawyers have brought court challenges that, if successful, would create a pressure of nearly half a billion dollars in additional claims and associated legal costs for ICBC over the next two fiscal years and put at risk our ability to continue to afford all of the increased care and recovery benefits our customers are now benefiting from.

READ MORE: ICBC expecting $1.18 billion annual loss as new injury caps take effect

ALSO: Pay, bonuses for ICBC executives being reduced, David Eby says

As his association represents private business, Mr. Truscott also makes the case that private insurance is the solution for B.C. His column didn’t acknowledge that some of the recent highest auto insurance rate increases in Canada have been happening in private-model jurisdictions (Alberta and Ontario) while public insurance models elsewhere (Manitoba and Saskatchewan) are thriving with much lower – or even no – rate increases.

Major improvements have already been made to B.C.’s auto insurance system, doubling care amounts for the injured and making the way we set rates fairer – these changes are working.

RELATED: B.C. drivers can calculate new insurance rates ahead of ICBC changes

Government and ICBC are focused on building on the success of the reforms made to date and are prepared to do more, as needed, to ensure we achieve the most important goal – affordable insurance rates for British Columbians.

Nicolas Jimenez is president and CEO of the Insurance Corporation of British Columbia

Like us on Facebook and follow us on Twitter

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

Just Posted

(Black Press Media file photo)
VicPD arrest man at gunpoint after firearm call

Man faces charges for breaching condition not to possess replica firearms

Sooke’s Amy McLaughlin holds Theodore, a bunny who will be going to a new owner in Nanaimo within the coming days if all goes will at an upcoming bunny play-date. (Aaron Guillen/News Staff)
Sooke woman looking to hop into bigger space for bunny business

Amy McLaughlin has rescued over 400 bunnies across the Island, mainland

Jerry Dyck plans to purchase a new RV to drive across Canada in, once it’s safe to travel again. (Courtesy BCLC)
Victoria man plans post-pandemic cross-Canada RV trip after $2M lottery win

Retired electrician bought the winning ticket in Duncan

Coroner Andy Watson confirmed the death of a man in Chemainus Monday night.
Death at Victoria encampment for people who are homeless deemed not suspicious

BC Coroners Service now investigating death at Royal Athletic Park Jan. 23

Crews with Discovery Channel film as an Aggressive Towing driver moves a Grumman S2F Tracker aircraft around a 90-degree turn from its compound and onto the road on Saturday, Jan. 23, 2021. It was the “most difficult” part of the move for the airplane, one organizer said. (Jenna Hauck/ Chilliwack Progress)
VIDEO: Vintage military plane gets towed from Chilliwack to Greater Victoria

Grumman CP-121 Tracker’s eventual home the British Columbia Aviation Museum on Vancouver Island

Rolling seven-day average of cases by B.C. health authority to Jan. 21. Fraser Health in purple, Vancouver Coastal red, Interior Health orange, Northern Health green and Vancouver Island blue. (B.C. Centre for Disease Control)
Second doses delayed as B.C. vaccine delivery delayed again

New COVID-19 cases slowing in Fraser Health region

The Pacific Rim National Park Reserve is urging visitors to stay on designated trails after a hiker became injured in an unsanctioned area last week. (Westerly file photo)
Injured hiker rescued in Pacific Rim National Park Reserve

“Safety is everyone’s responsibility.”

Provincial health officer Dr. Bonnie Henry talk about the next steps in B.C.’s COVID-19 Immunization Plan during a press conference at Legislature in Victoria, B.C., on Friday, January 22, 2021. Two more cases of the COVID-19 strain first identified in South Africa have been diagnosed in British Columbia, bringing the total to three as of Jan. 16.THE CANADIAN PRESS/Chad Hipolito
B.C. now has three cases of South African COVID-19 variant, six of U.K. strain

Both variants are thought to spread faster than earlier strains

Rodney and Ekaterina Baker in an undated photo from social media. The couple has been ticketed and charged under the Yukon’s <em>Civil Emergency Measures Act</em> for breaking isolation requirements in order to sneak into a vaccine clinic and receive Moderna vaccine doses in Beaver Creek. (Facebook/Submitted)
Great Canadian Gaming CEO resigns after being accused of sneaking into Yukon for vaccine

Rod Baker and Ekaterina Baker were charged with two CEMA violations each

Police discovered a makeshift nightclub in a Vancouver apartment on Jan. 23, 2021, and say it wasn’t the first time this month officers have been called to the unit over social gathering concerns. (Phil McLachlan - Capital News)
Doorman of makeshift ‘booze-can’ in Vancouver apartment fined; police look to court order

This marks the fourth complaint about social gatherings inside the apartment in January

Local musician and artist Daisy Melville created a watercolour portrait of U.S. Senator Bernie Sanders from the recent American inauguration, and with help from her mom, is now selling t-shirts and more with funds going to the Comox Valley Food Bank. Image submitted
Island artist turns Sanders inauguration meme into art for good

All proceeds from the sale of shirts, sweaters and more will go to the Comox Valley Food Bank

A Kelowna couple welcomed their Nooner baby in December. (Flytographer)
Kelowna couple welcomes baby girl from Hotel Zed Nooner campaign

Nicole and Alex will now have 18 years of free stays at the hotel

Kyrell Sopotyk was drafted by the Kamloops Blazers in 2016 and played two seasons with the Western Hockey League club. (Photograph By ALLEN DOUGLAS/KTW)
Kamloops Blazer paralyzed in snowboarding accident sparks fundraiser for family

As of Jan. 24, more than $68,000 had been raised to help Kamloops Blazers’ forward Kyrell Sopotyk

Most Read