From David Benning, an economist’s perspective, financial justification for this seismic policy shift is questionable. Thousands of jobs may be lost with no fault auto insurance, just as BC struggles to emerge from the COVID-19 pandemic.
The NDP government has relied on the most dire economic forecasts at ICBC to help manufacture a crisis necessitating no fault insurance. There is no “dumpster fire”. ICBC is a statutory crown monopoly with about $20 billion in assets. The government says ICBC has lost money in the last few years. Before that, ICBC was a cash cow earning hundreds of millions in profit through ICBC’s optional insurance program. Moreover, just last year, the Attorney General promised that the so-called “minor” injury caps were going to restore ICBC’s finances and save some $1.3 billion. What happened to those forecasted savings? As of November 2019, ICBC was on track to lose about $50 million. British Columbians should be uncomfortable that government’s answer to the alleged ICBC dumpster fire is to build a much bigger and more powerful dumpster with no fault auto insurance.