The select standing committee on provincial finance and government services held a public forum in Kelowna on Thursday to listen to public input about spending priorities for the 2019-20 provincial budget. Photo: Black Press/Barry Gerding

Climate change blamed for $1 billion annual B.C. property damage losses

Insurance Bureau calls for changes to revamp B.C. marketplace

ICBC’s monopoly on B.C.’s vehicle insurance market and impact of climate change were the focus of a submission by the Insurance Bureau of Canada before the provincial select standing committee on finance and government services on Thursday in Kelowna.

Aaron Sutherland, vice-president of the Insurance Bureau’s Pacific region, said B.C. residents are both paying excessively high rates for vehicle insurance compared to other provinces, and are incurring huge damage costs related to floods and wildfires initiated by weather pattern changes.

“With climate change, we see warmer winters and hot and dry summers in B.C. The last two years we have seen record flooding and wildfires,” Sutherland said.

“Since 2009, property damage losses have been at or above $1 billion across B.C.”

Sutherland said since the insurance industry assumes the cost for much of that damage, he called on the province to invest more money in infrastructure protection measures against flooding.

“We have seen some steps taken in that direction but we need to go a lot further,” Sutherland said.

He also raised concerns about the potential damage if a long-predicted major earthquake strikes B.C., saying only about 45 per cent of provincial residents have earthquake insurance.

“Of that 45 per cent, it increases to 60 per cent just within the Vancouver market and 70 per cent on Vancouver Island. But overall, that leaves close to one-half of the market who will need assistance if an earthquake occurs and that is a concern,” he noted, saying the government will be called on to help off-set the damage costs.

“So continuing public awareness is key and educating people to be prepared.”

Sutherland was one of a more than 20 organizations given a five-minute opportunity to make their pitch about what the provincial government priorities should be in the 2019-20 budget.

The select standing committee is chaired by Maple Ridge-Mission MLA Bob D’Eith and includes among its six MLAs Liberal Dan Ashton of Penticton.

Similar meetings are being held by the committee across the province, with a final report submitted to the legislature in November.

Many of the speakers focused on the issues of post-secondary education, health, and youth and family services.

Sutherland’s argument about ICBC centred around a Crown agency monopoly shutting out the private insurance marketplace from competition, which has made it slow to react to changing marketplace conditions and rising operating deficits.

“Some reforms are coming for ICBC but none of them address the issue of the affordability challenge for drivers facing escalating insurance rates. Double digit increases are coming in the years ahead,” he said.

And he said the B.C. bad drivers argument doesn’t hold water, noting that in Alberta there are more accidents per capita but basic insurance rates are more than $400 cheaper.

He said ICBC is losing money despite having a monopoly because of operating inefficiencies and a lack of innovation in the marketplace, demands that private insurers respond to quicker to remain in business.

“A bad system is failing and it’s time to look outside for other solutions,” he said.

To report a typo, email: edit@kelownacapnews.com.


@BarryGerding
barry.gerding@blackpress.ca

Like us on Facebook and follow us on Twitter.

Just Posted

FEDERAL ELECTION: Courtenay-Alberni candidates visit Parksville’s Ballenas Secondary School

Students ask questions before participating in their own vote

RDN offers free transit to polling stations on Oct. 21

Initiative aimed at boosting voter turnout, reducing vehicles on road

Qualicum Beach looks to drop Robert’s Rules of Order

Town plans to amend procedural bylaws

Parksville residents hear compelling tales from recovering young addicts

Speakers emphasize need for detox and treatment centre, shelter in the area

VIDEO: #MeToo leader launches new hashtag to mobilize U.S. voters

Tarana Burke hopes to prompt moderators to ask about sexual violence at next debate

Potent power play paces Canucks to 5-1 win over Detroit

Miller nets a pair as Vancouver wins third straight

UPDATE: British couple vacationing in Vancouver detained in U.S. after crossing border

CBP claims individuals were denied travel authorization, crossing was deliberate

After losing two baby boys, B.C. parents hope to cut through the taboo of infant death

Oct. 15 is Pregnancy and Infant Loss Awareness Day in B.C.

Cheating husband sues mistress for gifted ring after wife learns about affair

The husband gave his mistress $1,000 to buy herself a ring in December 2017

B.C. massage therapist reprimanded, fined for exposing patients’ breasts

Registered massage therapist admits professional misconduct

B.C. boosts legal aid funding in new payment contract

‘Duty counsel’ service restored in some communities, David Eby says

Rugby Canada helps recovery efforts in Japan after typhoon cancels final match

Canadian players wanted to “give back in whatever small way they could”

VIDEO: Bear spies on cyclists riding by on Campbell River street

Riders seem unaware the bruin is mere feet away on the side of the road

Most Read