ICBC reducing optional rates thanks to good financial results

[Bonka]

Three per cent drop in optional rates starting October 1

VANCOUVER (NEWS1130) - Another good financial quarter for ICBC will mean a reduction in optional insurance rates starting October 1st. And ICBC is giving some of the credit to drivers.

The good financial report means ICBC can stick by its previously announced commitment to reduce rates on October 1st. While reducing optional rates by about three per cent, ICBC is leaving basic rates the same.

ICBC's Adam Grossman says good weather over the last six months, streamlined claims-handling procedures, and a slow in the growth in the number of cars on the road have all helped. "Our claims costs are down by $50 million for the second quarter of 2009 over the second quarter of 2008. Particularly, we're seeing a decline in the number and the total cost of injury claims. Primarily for this, a big thank you to customers for driving safely out there."

Grossman says the extra profits will also fund much needed improvements to customer service systems and ICBC's road safety education programs.

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[tool001]

Originally Posted by Bonka

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wow, nice,

did they say, what areas they will be increasing rates? pretty sure in the end people will be paying more. one way or another.

[orange7]

Grossman says the extra profits will also fund much needed improvements to customer service systems and ICBC's road safety education programs.

soo, I guess they are getting a riase. Then next year when there isn't much of a profit, they will increase insurance cost to pay for their wages.
Am i partly correct?

[?NR]

so.

compulsory coverage = no decrease <- monopoly.
optional Comprehensive/collision = 3% decrease. <- choice to go 3rd party.

not surprising. 2 birds 1 stone. Make it competitive for optional 3rd party insurance providers, putting pressure on while appealing to the general public by offering a discount that doesn't really change that much.

I'll clap when they offer that same discount to basic monopolized coverage.

[Nightwalker]

Originally Posted by !NiteRaven

so.

compulsory coverage = no decrease <- monopoly.
optional Comprehensive/collision = 3% decrease. <- choice to go 3rd party.

not surprising. 2 birds 1 stone. Make it competitive for optional 3rd party insurance providers, putting pressure on while appealing to the general public by offering a discount that doesn't really change that much.

I'll clap when they offer that same discount to basic monopolized coverage.

That's what I was thinking, looks like they're trying to be more aggressive competing against 3rd party insurance.

Since when have they not posted massive profits?

[Edison_Chen]

Optional coverages with ICBC is still quite expensive. I believe that even with a 3% reduction in private coverages, the premiums are still expensive. With all the different insurance companies that I deal with, the cheapest one for majority of the population I would say is CDI.

[tiger_handheld]

ICBC screws up -> rates go up

ICBC does good -> rates go down ; Exec's get bonus ; followed by a rate increase following year due to fund shortages..

sounds about right... i love paying more for other peoples learning experiences.

[ilvtofu]

3% doesn't really add up, i think i'd still choose a 3rd party company...