Regulating ICBC Basic Insurance

In British Columbia, ICBC is the only provider of basic automobile insurance.

The BCUC is responsible for regulating ICBC’s basic insurance rates under the Insurance Corporation Act and the Utilities Commission Act. We are responsible for ensuring that ICBC provides basic insurance to customers in a manner that we consider to be adequate, efficient, just, and reasonable.

BC Government Direction

ICBC is a provincial Crown corporation established and owned by the BC government. The BC government may direct ICBC and/or the BCUC to perform certain tasks related to basic automobile insurance. These directives can be issued to the BCUC through special directions or Orders in Council (OIC), on specific actions we must take when regulating ICBC.

Role of BC Government

We regulate items within our jurisdiction, subject to directives from the BC government.

These include changes to how ICBC’s basic insurance premiums are determined (rate design), rate changes for ICBC basic insurance premiums, and the provision of basic insurance to ICBC’s customer base as a whole.

In 2004, the BC government established Special Direction IC2, which has been amended from time to time. It requires ICBC to submit a general rate change application to the BCUC every year. It also requires the BCUC to approve a rate change that is within 1.5% points from the previous year's change and consider the financial health of ICBC. The BCUC has raised concerns about ICBC’s financial health, as outlined in letter L-32-20.

BCUC Responsibilities

Subject to directives from the BC government, the BCUC is responsible for regulating:

  • Changes to how ICBC’s basic insurance premiums are determined (rate design);
  • Rate changes for ICBC basic insurance premiums; and
  • The provision of basic insurance to ICBC’s customer base as a whole.

The BCUC is not responsible for regulating:

  • ICBC’s optional insurance business, as optional insurance is offered by ICBC and other insurance providers in a competitive market;
  • Compensation or settlements for accidents;
  • Individual customer insurance policies; and
  • Optional insurance, which includes collision, comprehensive, extended third party liability, rental vehicle coverage, extension underinsured motorist protection, loss of use, luxury vehicles, specified perils, new vehicle protection, optional insurance packages, specialized coverage, etc.

ICBC & BCUC Communications

The BCUC may use L-letters to contact the entities it regulates on matters that do not relate to a specific proceeding or application. The following list includes the latest communications between the BCUC and ICBC.

Date Document Number Title / Description
2020-06-17 L-32-20 Financial condition of Basic insurance business
2020-03-23 L-14-20 Impact of COVID-19 on ICBC Basic policyholders
2018-07-16 L-18-18 Request to Further Streamline ICBC’s Statutory Fiscal Year-End Reporting Requirements
2017-07-28 L-17-17 Proposal to Discontinue Requirement for Annual Basic Insurance Minimum Capital Test (MCT) Certificate
2016-07-21 L-18-16 Filing of the Insurance Business Capability Project Information Technology (IT) Capital Report

ICBC proceedings and decisions

The BCUC conducts public, open, and transparent review processes of the applications it receives from ICBC. To see in progress and completed ICBC proceedings, please see our Proceedings page. For a list of the BCUC’s decisions on ICBC applications, please visit our Orders and Decisions page.

Proceedings Orders and Decisions

Get Involved

We handle complaints and inquiries about the utilities we regulate. To file a complaint about a regulated energy utility, please see our Complaint Process.

Get Involved

Complaint Process

We review complaints and inquiries about ICBC’s basic automobile insurance rates. If your complaint fits within the BCUC's jurisdiction and you would like to file a complaint, click the link below.

File an ICBC Complaint