B.C.’s Transportation Minister and ICBC announced a new high-tech tool to fight insurance fraud, but the effort to stem the rising costs of claims doesn’t necessarily mean a break on your basic insurance bill.
ICBC says the use of fraud analytics technology would reduce claims costs by $21 million over the next year.
President and CEO Mark Blucher says it will reduce pressure on basic insurance rates, yet the Crown Corporation is still asking for a rate increase.
READ MORE: UPDATED: ICBC to apply to raise basic rates
He says accidents are up 15 per cent over the past two years, repair costs are up, and so is fraud.
“Those costs are all contributing to pressure on rates. It’s not one thing that is going to fix that, it is a combined effort across a range of different things to keep the rate at 4.9 per cent or below. Our goal in this company is to everything we can to keep rates as affordable as possible for the people of B.C.”
Blucher says it’s a group effort.
“I think the key message I would give is that it is going to take a lot of effort from everybody, from ICBC, from the government, from the public of B.C. to address the issues that are putting pressure on rates.”
The worst case scenario is a 42 per cent rate increase by 2020.