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.

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.