I’d like to provide you with an update to the March 5 email you may have received from Jeff Groot regarding the month-long engagement we launched to hear from the public and stakeholders on how ICBC can make vehicle insurance rates more fair for drivers.

Nearly 35,000 people provided input and a report summarizing that feedback has been posted on the ICBC rate fairness site, which you can access here: engage.gov.bc.ca/ratefairness.

British Columbians have said for years that B.C.’s auto insurance system would be more fair if lower-risk drivers paid less for their insurance and higher-risk drivers paid more – and we heard it again through the recent rate fairness public engagement.

Over the coming months, government will work with ICBC to review the feedback, including stakeholder feedback, to help design an improved auto insurance rating system for British Columbians. Our goal is to implement changes beginning later in 2019.

The model ICBC currently uses to help determine insurance rates is more than 30 years old and, while some improvements have been made over the years, it is out of date. It means that right now, some drivers are paying more and some drivers are paying less than the risk they represent. 

As a first step to improve rate fairness, government has asked us to bring forward to the British Columbia Utilities Commission (BCUC) increases to the premiums of the Driver Penalty Point (DPP) and Driver Risk Premium (DRP) programs to be ready for implementation as early as this fall. 

In line with one of the proposals we put forward and once approved by the BCUC, these changes will result in DPP and DRP amounts increasing by 20 per cent in the first year, and 20 per cent next year.

The combined 40% increase aligns with how much British Columbians have seen their Basic insurance rates increase over the past decade – including those who do not have driving convictions. 


Holly Cairns

A/Executive Director, Crown Agencies

Associate Deputy Minister’s Office, Ministry of Attorney General