VICTORIA – Transportation and Infrastructure Minister Todd Stone has issued the following statement on the Insurance Corporation of British Columbia’s (ICBC) submission to the British Columbia Utilities Commission (BCUC) for next year’s Basic insurance rate:

“Over the last few weeks, staff from the Ministry of Transportation andInfrastructure and the Ministry of Finance have worked with ICBC to identifystrategies to keep the 2015 Basic insurance rate increase as low aspossible. Today, ICBC is applying to the BCUC for an increase of 5.5% toBasic insurance rates for the coming year. If approved, this will mean anaverage increase of $3.70 per month for customers’ Basic insurance coverage.

“British Columbians should know that after exploring a number of ideas, weused the only feasible option available to us right now that would reducethe proposed November rate increase. Government allowed ICBC to move $450 million from the Optional insurance side of its business to strengthen capital on the Basic insurance side. This is the maximum amount of transferunder the BCUC framework that will help lower Basic rates.

“In doing so, ICBC was able to apply for a Basic rate increase of 5.5%,which is similar to last year’s Basic rate increase. Without the action ofgovernment, the Basic rate increase for next year would have been 6.7%.

“While I’m disappointed that the proposed Basic rate increase for thiscoming year could not be lower, ICBC is facing serious cost pressures as aresult of the complexity, frequency and severity of bodily injury claims.Last year, bodily injury costs totalled over $2.17 billion, up nearly 10% in one year, and this trend continues to grow.