Fraser Institute looks into who’s to blame for ICBC’s financial woes

The short answer is, the previous provincial government, according to a new study from the Fraser Institute. The Decline and Fall of ICBC by John Chant, a Fraser Institute senior fellow and professor emeritus of economics at SFU, found that ICBC claim costs have been rising while its investment income has shrunk and insurance rates have not kept pace. Chant points out that unlike private insurers, which can be replaced by other insurance companies, were ICBC to fail, it would be much more damaging because of its size and because it is the only supplier of compulsory (basic) insurance in B.C. “The current government deserves credit for bringing the issue forward and seeking informed advice,” he says.” ICBC’s role must be rethought, as must the objectives and role of government in the insurance business.”