BURST
ICBC was bleeding red ink a decade ago, facing billion-dollar losses and the spectre of steep rate increases for drivers.
The financial state of the Crown corporation had been kept secret by the B.C. Liberals, the right-of-centre ruling party at the time. That changed when the NDP came to power under John Horgan in 2017, when a government report outlining the problems became public.
To fix the financial mess, which then-Attorney General David Eby called a dumpster fire , the NDP introduced a scheme that provides health benefits regardless of fault but doesn’t allow victims to sue for injuries. The no-fault auto insurance system was already in use in Canada, including in Manitoba and Quebec.
With a snap provincial election set for Oct. 24, B.C.’s no-fault system is back in the spotlight.
B.C. Conservative Leader Lorne Doerkson is talking about changing the system that turned ICBC’s finances around. He laid out his plan in a letter to the private Insurance Bureau of Canada, the Trial Lawyers Association, the Law Society, and the B.C. branch of the Canadian Bar Association. Doerkson would quickly scrap the no-fault system and introduce a hybrid system that provides the ability to sue in some cases, and would also examine opening up auto insurance to private competition. He said everything is on the table.
The B.C. Tories, now the main right-of-centre party in B.C., say the changes are necessary to properly compensate people with serious, catastrophic or life-altering injuries. The B.C. Conservatives didn’t respond with more information when asked for details on what type of injuries people would be able to sue over, how much rates would increase or how private competition would dovetail with the current system.
Eby has criticized Doerkson as selling out the public for the benefit of lawyers and promising “secret” changes that will raise rates. The Insurance Brokers Association of B.C. warned this week that any changes need to be considered carefully. In a statement, the association, which represents 800 insurance brokerages, said having studied alternatives to B.C.’s public auto insurance system it had yet to see a universally available, consumer-friendly, private-market or hybrid option that allows lawsuits and would provide greater long-term and sustainable value for B.C. drivers than the existing framework.
While some crash victims say the no-fault system is unfair, is difficult to navigate and doesn’t fully compensate them, especially if they have long-term health problems or injuries, there is little doubt that no-fault has repaired ICBC’s financial health. There have been no basic insurance rate hikes in the past seven years.
In the 2025-26 fiscal year that ended in March, the Crown corp. reported a surplus of $1.517 billion , down slightly from the previous year’s $1.651 billion surplus. The surpluses have allowed ICBC to provide rebates to customers, five since 2021, totalling about $2.7 billion , with the average vehicle owner receiving cumulative rebates of about $640.
This week, Eby promised another three years of ICBC basic rate freezes , which would give drivers a decade of no increases.
Werner Antweiler, a professor at the Sauder School of Business at the University of B.C., notes he has been very critical of the NDP when it comes to fiscal policy. But he said moving to a no-fault insurance model for injuries was the right thing to do.
“The economics are all on the side of it,” said Antweiler.
He pointed to the fact that conservative Alberta is moving to a no-fault model on Jan. 1, 2027.
“If Alberta is doing it, that tells us something,” he said.
Premier Danielle Smith’s United Conservative Party is introducing the no-fault system to address skyrocketing auto insurance costs and a congested legal system. An Alberta government report estimated savings of nearly $300 per ratepayer for private passenger vehicles.
Antwelier noted that while there are significant financial benefits to the no-fault system and people can get health care more quickly because they don’t have to wait for settlement claims, and money isn’t eaten up by legal fees, it’s important to pay attention to the concerns of people navigating the system. So some changes may be needed, he said.
As part of the introduction of no-fault insurance, the NDP government promised to review the system every five years. A special committee of the B.C. legislature had just started that review when the snap election was called. The NDP has said the review would continue if they retain power. As part of that review, the B.C. government has suggested adding advocates to help victims navigate ICBC’s no-fault scheme.
During the start of hearings last month, the committee heard from injured victims , including Julia Kwan, whose massive injuries included a broken pelvis, wrist and foot, eight broken ribs, and damage to her kidney and spleen. She was hit by a dump-truck in Richmond almost two years ago.
Kwan, a self-employed marketing and management consultant who had worked for 10 years for Crown corporations and private industry, said that even with her professional skills, university degree and understanding of technology and corporations, she was overwhelmed by having to navigate the system on her own.
CentreBC, led by Elenore Sturko, also says the no-fault system isn’t working for people with life-altering injuries. She said before deciding to amend no-fault or replace it her party would finish the work of the committee.
With Postmedia News files