Despite a 1% return on its investments in 2009, the Insurance Corporation of B.C. plans to reduce optional insurance rates for a third year in a row.
ICBC is applying to the B.C. Utilities Commission, which regulates auto insurance rates, for a 3% reduction. The decline follows a 3% drop in optional rates last year and a 3.8% drop in 2007.
ICBC reported net income of $497 million for the year ending December 31, 2008, down 23% from $642 million in 2007. Investment income fell 54% to $280 million from $612 million, but a lower than expected number of auto and injury claims helped ICBC's bottom line last year.
Insurance premiums rose to $3.6 billion from $3.5 billion while claims fell to $2.8 billion from $2.9 billion.
ICBC will be making its recommendations to the BCUC for 2009 rates in the spring.