Blog

Ontario Review Promises Greater Transparency and Accountability.

Commentary on certain aspects of the Ontario government's plans regarding electricity pricing and auto insurance regulation.

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New Fraser Institute Paper on ICBC.

A commentary on a paper released by the Fraser Institute on certain aspects of the finances of ICBC.

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Terminology and Perceptions of ICBC.

Driver-based penalties are increasing by 20% today, with another 20% increase planned for 2019. ICBC calls the penalty a premium, which confuses this penalty with the vehicle premium. Confusion is part of the reason for the low public perception of our auto insurer.

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Unknown Driver Fee a Symptom of Larger Problem.

Is the new penalty and protection fee an abuse of monopoly power and an attempt to achieve risk pricing perfection?

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NDP Perpetuates Liberal Practices Regarding ICBC: Keeps Watchdog Confined. September 4, 2018.

This paper discusses the fact that the NDP government is using cabinet orders to control ICBC's finances and keep the B.C. Utilities Commission confined. These were the tactics used by the previous government to avoid public oversight.

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Delayed Rate Increase to Cost ICBC up to $150 million. August 12, 2018.

The government's decision to postpone a general rate increase until April 2019 will reduce ICBC's already low capital reserve by perhaps $150 million in 2018/19.

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Commentary on Results of Opinion Survey on ICBC Rates. May 21, 2018.

This paper reviews the key results of the government's public opinion survey on potential changes to ICBC's driver penalties and the design of Basic rates.

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Fraser Institute Report on ICBC's Finances: Late and Confusing. April 11, 2018.

My comments on the Fraser Institute's report "The Decline and Fall of ICBC."

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Commentary on ICBC Rate Design Proposals. March 8, 2018.

My comments on certain aspects for the latest proposals to make Basic insurance rates "fairer." It seems that most of the proposals will result in less generous discounts and greter revenue for ICBC.

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Accounting Treatment of ICBC's Net Loss Complicates Provincial Budget. February 17, 2018.

The national public sector accounting rules require that ICBC's net income or loss be counted in the government's revenue. The increase in the net loss reduces revenue, but there is no change in the actual cash being transferred (which is nil). This accounting anomoly requires further review.

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Comment: Changes Coming to ICBC's Injury Model. February 8, 2018.

On 6 February 2018, minister responsible David Eby announced major changes to injury claims process and coverage, with expanded no-fault accident benefits and monetary limits, and a $5,500 cap on pain and suffering claims for "minor" injuries. The government expects that these changes will reduce annual claims costs by approximately $1.0 billion.

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Alberta Caps Auto Insurance Increase at 5 Percent. December 19, 2017.

The Alberta government has limited the 2017/18 increase in the private vehicle insurance rates to 5%. It stated that the previously allowed 10% maximum increase was not inline with its affordability priority. Background and implications are provided. 

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Rate Increases for Basic Auto Insurance in BC, Saskatchewan and Manitoba. December 8, 2017.

The Manitoba regulator recently approved a 2.6% increase in Basic vehicle rates for the coming year. This paper looks at how BC rate increases compare to the publicly-owned no-fault systems in Saskatchewan and Manitoba.

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New ICBC Forecast Confirms Financial Crisis is Worsening. November 29, 2017.

A new ICBC forecast of the Basic program shows major rate hikes are required to keep the capital reserve from being fully depleted within four years.

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ICBC Fact Check Fraud Costing $600 million? March 9, 2017.

This Fact Check concludes that ICBC's claim that fraud is costing $600 million annually is significantly exggerated. 

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ICBC's Steve Crombie Interview Fact Check. March 9, 2017.

This paper reviews Mr. Crombie's comments in a recent interview as reported by Keith Baldrey in the Burnaby News of March 6, 2017.

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ICBC Deficits-Question Period February 22, 2017. February 26, 2017.

Minister Stone attempts to defend ICBC's deficit forecasts during Question Period on February 22, 2017.

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ICBC's Forecasts for 2016/17 and 2017/18 Show Worsening Outlook. February 22, 2017.

ICBC's 3rd Quarter 2016/17 forecast, and the 2017/18 forecast show a worsening financial picture. No relief in the government's 2017/18 budget.

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Submission to the BC Utilities Commission re ICBC Review. January 24, 2017.

My submission recommends that the BC Utilities Commission set expectations for ICBC's 2017 rate request, and includes data on forecasted rate requirements and comparisons of Basic rate increases with Saskatchewan and Manitoba.

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ICBC 2016 Basic Rate Request-Final Argument. December 20, 2016.

"A foolish consistency is the hobgoblin of little minds...."; Richard McCandless submits comments and recommendations to the BC Utilities Commission respecting ICBC's 4.9% Basic rate increase for 2016.

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ICBC Basic Claims Costs 2012 to 2015. 12 December 2016.

This Occasional Paper (No. 18) reviews ICBC claims data from 2012 to 2015 to attempt to identify cost drivers. The outlook for the medium term is as discussed.

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ICBC's Five Year Basic Forecast of 23 November 2016. 24 November 2016.

My preliminary impressions of ICBC's Basic forecast filed on 23 November 2016.

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Responsible Vehicle Owners Press-Ganged to Keep Good Ship British Columbia Fiscally Afloat. 3 June 2014

How the government relies on ICBC's Optional insurance to generate excess profits. 3 June 2014.

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