The Insurance Corporation of British Columbia (ICBC) will be providing a $110 rebate to eligible drivers through what the government says is financial management and better-than-expected investment income. Additionally, basic rates will be maintained until March 31, 2026, marking six years in a row with no increases. “Six years of stable rates and the fourth rebate for drivers comes as a result of years of work turning ICBC around so that it actually works for people,” said BC Premier David Eby in a Wednesday press release. “On average, drivers have saved $2,000 in rebates and lower rates since our reforms to ensure that when auto insurance is properly managed, people in BC benefit.”Due to responsible fiscal management and positive investment performance, the BC government said ICBC’s preliminary net income for the 2023-2024 fiscal year is an estimated $1.5 billion. It said the total amount of the rebate is $400 million — equivalent to $110 per eligible insurance policy. As the law now requires, the balance will stay with ICBC, helping to stabilize rates for drivers over the long term. The final, audited net income figure and a full financial summary of the fiscal year will be released this summer.It confirmed all personal and commercial ICBC customers who had an active eligible basic insurance policy in February will receive the rebate, totalling about 3.6 million policies.BC Public Safety Minister and Solicitor General Mike Farnworth said ICBC “is able to return $400 million to drivers because of prudent fiscal management that puts people first and our commitment in law that ICBC’s surplus should go toward benefiting drivers instead of going to government coffers.”“This rebate, alongside the decision to not increase basic rates for six years in a row, underscores the benefit of a public auto insurer,” said Farnworth.“When private insurance companies make a profit, it’s at the expense of, not for the benefit, of drivers.”It said an important barometer of ICBC’s financial strength is its ability to absorb adverse risks and to continue fulfilling its obligations to policyholders, which is referred to as the minimum capital test (MCT). In 2015, the indicator for its basic capital fell below 85% and hit 0% by 2018.Following the introduction of Enhanced Care, its financial position has improved and the estimate for its basic MCT is above 160% and projected to remain strong.The BC government pointed out ICBC President and CEO David Wong has significant experience in financial management and a commitment to customer-centric services. It said Wong’s leadership focus aligns with its mission to prioritize affordability and enhance customer convenience.Wong said if people want to receive their rebate as soon as possible, they should update their addresses and sign up for direct deposit on https://icbc.com/ or through an Autoplan broker. “Initial rebate payments will commence in late May, with ongoing processing until the end of July,” he said. “Customers receiving rebates via cheque are advised to allow additional time for mail processing and delivery.”How drivers receive the rebate depends on how they paid for their insurance. For people who paid by credit card, the rebate will be refunded to it. People who paid by cash, cheque, or debit can sign up for direct deposit or will receive a cheque from ICBC. For those who are on a payment plan, the rebate will be applied to an upcoming payment.As a public insurer, ICBC remains dedicated to providing essential services to British Columbians. In addition to insurance coverage that provides vehicle repairs and recovery benefits for people involved in crashes, it provides driver licensing and identification services and spends money on road safety initiatives.This announcement comes after the Alberta government said in November it would be implementing reforms to address high auto insurance rates as it explores long-term solutions. READ MORE: Alberta government reforms auto insurance system “We know that Albertans have been struggling with their auto insurance rates and that’s why we’ve been working hard to find solutions,” said Alberta Premier Danielle Smith. “I’m pleased that we can work to bring forward these new measures to help.”
