- Government monopoly would have posted $6 million loss without investment income.
- CTF calls for competition, an end to the ICBC monopoly.

VICTORIA: The Canadian Taxpayers Federation (CTF) responded today to the outrageous "incentive pay" bonuses at the Insurance Corporation of B.C (ICBC). ICBC executives are cashing in on bonuses of up to $64,000 but there's no plan to reduce premiums for drivers.

"If ICBC had to compete to attract customers, there is no way the year's income would be divvied up between management and staff. Customers would be getting a break. But, as it stands, ICBC has the drivers of this province under their thumb, courtesy of the government. Like all government monopolies, ICBC doesn't have to consider customer satisfaction, because customers have no where else to go," said CTF director Sara MacIntyre.

In 2004, its most profitable year, ICBC posted a net income of $389 million and credited good driving conditions, lower than forecast claims costs and higher investment income returns for its positive bottom line. In fact, if investment income is taken out of the financial equation, ICBC would have posted a $6 million loss.

"ICBC is using its investment income as a personal piggy-bank for staff and management, instead of re-investing it or giving its customers a break. And the government that promised BC 'greater competition in auto insurance, to create increased choice and reduce motor vehicle premiums' is defending these outrageous payouts," MacIntyre said.

The 2001 Liberal "New Era" election platform included a commitment to introduce greater competition in the auto insurance industry. But, today, drivers still have to rely on ICBC for insurance.

"The only way to change decision making at ICBC is to end the monopoly and offer drivers some choice and that's a decision the government must make," concluded MacIntyre.