In a financial update released today, BC’s new NDP government says ICBC lost $612 million in the last fiscal year, and the public auto insurer is putting the province’s financial situation under stress.
A recent report from Ernst & Young painted a dire picture at the Crown corporation, concluding that rates must increase by 30 per cent by 2019 to cover costs. A separate forecast released last November by ICBC indicated rates would need to increase by 42 per cent over the next five years to make up for expenses.
The NDP government has not released a comprehensive plan for addressing the crisis at ICBC, though minitser responsible David Eby described the situation as urgent.
The government faces an Aug. 31 deadline to submit filings ahead of ICBC’s rate-setting hearing at the B.C. Utilities Commission.
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-with files from Canadian Press