The Insurance Corporation of British Columbia seems to be heading for a financial disaster by the end of the current fiscal year.
It is projected that the Government-regulated company will lose $1.3 dollars. That's $1 billion more than initially projected three months ago. This would lead to a daily loss of $3.5 million.
The loss, which has been deemed as "unsustainable," could lead to large hikes in rates for B.C. drivers, and a deficit in next month's balanced provincial budget.
Kris Sims, BC Director for Canadian Taxpayers Federation, says the problem seems to stem from the B.C. Government's monopoly on auto insurance, and it could be solved by opening the doors to competition.
"What we think should happen with ICBC is that we should take ICBC and change it into a co-op, so that it's similar to a credit union," says Sims. "That way, B.C. drivers who like them can choose them, and they can stick with that co-op. And then next to that co-op, open it up to competition from other companies. So that B.C. drivers can shop around and try to find lower rates.
Governor General David Eby called the financial operating loss a "dumpster fire," and said he is looking into long term solutions to try and stabilize ICBC's situation.