BC Liberals playing a dangerous game with ICBC

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Loudmouth BC Liberal MLA Jas Johal appears to have committed the BC Liberals to putting ICBC brokers out of business. In the article where the above clip comes from, Jas comments that by offering online insurance renewals, clients could save the broker share of the costs and pocket several hundred dollars as a result.

This presumes that an online apparatus is free to run (it isn’t), it assumes that no problems would arise as a result (unlikely).

Where does one pick up their insurance decal when ordering online?

But here is the kicker: there is absolutely no evidence that the BC Liberal Government prior to the 2017 handover was planning a roll out of online ICBC renewals. This seems to be another hot-air idea drummed up by overly ambitious BC Liberal hacks seeking out a position merely to attack the NDP with.

This doesn’t assume that online renewals cannot be done; you can do almost anything online. But to retain some buy-in from the industry, there will have to be some sort of check-off for originating brokers to get some residual fee from a renewal.

ICBC brokers charge a fee to resell insurance. Of course they do. EVERY insurance broker makes a percentage or fee from an insurance package they sell – whether car insurance, home insurance, life insurance, or anything. Its how a brokerage exists; those margins define the revenues for these independent brokers to exist…and provide a human contact between insurance company and client.

This latest pseudo-outrage over what ICBC pays out to brokers is a giant #nothingburger.  As a precentage, ICBC brokers change on average 8% back to ICBC as their margin. This is less on average than what other brokers charge for vehicle insurance elsewhere in Canada.

If anything, should ICBC be dismantled and a privatised model take hold, those rates could indeed rise; as would almost every other fee possible. ICBC isn’t perfect, and the upheaval its going through isn’t unlike others in the industry.

What this imaginary fiasco really is, is a distraction as the government is facing legal action by the trial lawyers association over legislated caps to soft tissue damage awards…caps that exist elsewhere in Canada and have withstood legal challenges there too.

I get it, turn ICBC into a phantom enemy so its easy to hate it and legitimise a campaign to destroy it. But the BC Liberals with their 16 year legacy of power saw no urgency in dismantling ICBC; they instead saw an opportunity to use the insurance corporation as a cash cow to prop up their imaginary budget surplus. That is the real scandal.

Sure the BC Liberals aren’t in office anymore and its the NDP’s show. Ok, so let them get it done. The reforms they’re undertaking were the ones originally hidden from public knowledge in the secret report into reforming ICBC that the BC Liberals didn’t want anyone to see. Its a report that highlighted problems *and* fixes.

Its a report that had the BC Liberals retained power, they would be enacting said reforms too.

The BC Liberals are now wasting time attacking the NDP for fixing the thing that the Liberals tried so hard to break and bleed white.

Look, the NDP isn’t perfect as they’re journey in power hasn’t been exactly smooth. But the alternative #partyofstupid is unthinkable.

My2bits

 

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