B.C. Election Analysis: ICBC reform becomes a focal point of campaign

ICBC was bleeding red ink a decade ago, facing billion-dollar losses and the spectre of steep rate increases for drivers.

The financial state of the Crown corporation had been kept secret by the B.C. Liberals, the right-of-centre ruling party at the time. That changed when the NDP came to power under John Horgan in 2017, when a government report outlining the problems became public.

To fix the financial mess, which then-Attorney General David Eby called a dumpster fire, the NDP introduced a scheme that provides health benefits regardless of fault but doesn’t allow victims to sue for injuries. The no-fault auto insurance system was already in use in Canada, including in Manitoba and Quebec.

With a snap provincial election set for Oct. 24, B.C.’s no-fault system is back in the spotlight.

B.C. Conservative Leader Lorne Doerkson is talking about changing the system that turned ICBC’s finances around. He laid out his plan in a letter to the private Insurance Bureau of Canada, the Trial Lawyers Association, the Law Society, and the B.C. branch of the Canadian Bar Association. Doerkson would quickly scrap the no-fault system and introduce a hybrid system that provides the ability to sue in some cases, and would also examine opening up auto insurance to private competition. He said everything is on the table.

The B.C. Tories, now the main right-of-centre party in B.C., say the changes are necessary to properly compensate people with serious, catastrophic or life-altering injuries. The B.C. Conservatives didn’t respond with more information when asked for details on what type of injuries people would be able to sue over, how much rates would increase or how private competition would dovetail with the current system.

Eby has criticized Doerkson as selling out the public for the benefit of lawyers and promising “secret” changes that will raise rates. The Insurance Brokers Association of B.C. warned this week that any changes need to be considered carefully. In a statement, the association, which represents 800 insurance brokerages, said having studied alternatives to B.C.’s public auto insurance system it had yet to see a universally available, consumer-friendly, private-market or hybrid option that allows lawsuits and would provide greater long-term and sustainable value for B.C. drivers than the existing framework.

While some crash victims say the no-fault system is unfair, is difficult to navigate and doesn’t fully compensate them, especially if they have long-term health problems or injuries, there is little doubt that no-fault has repaired ICBC’s financial health. There have been no basic insurance rate hikes in the past seven years.

In the 2025-26 fiscal year that ended in March, the Crown corp. reported a surplus of $1.517 billion, down slightly from the previous year’s $1.651 billion surplus. The surpluses have allowed ICBC to provide rebates to customers, five since 2021, totalling about $2.7 billion, with the average vehicle owner receiving cumulative rebates of about $640.