WHEREAS the Province is divided into various geographical boundaries for the purpose of determining insurance rates based upon vehicle driving habits and patterns; AND WHEREAS these boundaries have not been reviewed and justified by ICBC since their inception in the 1970s, of which the financial impacts can significantly affect the communities and their citizens on either side of a boundary: THEREFORE BE IT RESOLVED that the UBCM lobby the BC Utilities Commission to initiate a review of ICBC zones based upon scientific data that supports the boundary delineations and, subsequently, the rates that affect the users within those boundaries.
Ministry of Public Safety and Solicitor General Premiums are based on a number of factors including the claims history of the principal operator, rate group for the vehicle being insured, purpose for which the vehicle is being used, purchased coverage, and territory in which the vehicle is primarily being operated. Any time rating territories are changed, large numbers of policyholders are impacted. Some may have their premiums reduced, while others could experience increases. Basic rate design, including territories, is now under the jurisdiction of the BC Utilities Commission BCUC. The Insurance Corporation of British Columbia ICBC is currently developing its rate design application anticipated to be filed with the BCUC in Spring 2007. ICBC is seeking input from interested parties prior to filing its rate design application through a public pre-application consultation process. ICBC is aware of the UBCMs concerns with respect to territories and is seeking further input from them. ICBC will be taking all interested parties input into account in developing its rate design application.
BRITISH COLUMBIA UTILITIES COMMISSION On September 20, 2006, ICBC advised the Commission that it would be filing a Rate Design Application in the Spring of 2007. The application also would include a boundary review for compulsory automobile insurance in the Province. Following its filing, the Commission will set down the Application for a public review process at which time applications for interventions would be accepted from the public. As this matter is important to residents and drivers in the Province, the UBCM may wish to register as an intervenor in the process that will be established for the Applications review. Input and comments on the boundary review and rate design issues will be important issues for the Commission to consider. In order for the Commission to be aware of the UBCMs interest in this matter, a copy of your letter and the Associations interest will be sent to the Panel that will review the filing. INSURANCE CORPORATION OF BRITISH COLUMBIA The Corporation is aware of the UBCMs concerns regarding current ICBC territory boundaries and appreciate you bringing your resolution, B79 - ICBC Boundaries, to our attention. Basic Insurance Rate Design determines how premiums for each customer group are established. The revenue that is received must remain neutral, that is, the total amount of premiums received from all customers must remain the same. Territory changes that result in decreases to basic insurance premiums for customers in one territory will result in corresponding increases to basic insurance premiums to customers in another territory. For your information, ICBC will be making a Basic Insurance Rate Design Application to the BCUC in the spring of 2007. Through an open and transparent regulatory review process, the BCUC will ensure that basic rates are fair, just, and reasonable. INSURANCE CORPORATION OF BRITISH COLUMBIA The Corporation is aware of the UBCMs concerns regarding current ICBC territory boundaries and appreciate you bringing your resolution, B79- ICBC Boundaries, to our attention. Basic Insurance Rate Design determines how premiums for each customer group are established. The revenue that is received must remain neutral, that is, the total amount of premiums received from all customers must remain the same. Territory boundary changes that result in decreases to basic insurance premiums for customers in one territory will result in corresponding increases to basic insurance premiums to customers in another territory. For your information, ICBC will be making a Basic Insurance Rate Design Application to the BCUC in the spring of 2007. Through an open and transparent regulatory review process, the BCUC will ensure that basic rates are fair, just, and reasonable.