Critics: ICBC sitting on massive reserve of cash
Posted August 20, 2010 10:03 am.
This article is more than 5 years old.
VANCOUVER (NEWS1130) – Earlier this week, we learned ICBC has applied for a 1.9 per cent decrease to basic insurance rates. We knew the corporation’s financial picture was a rosy one, but today we learned the insurer is sitting on a $3.1-billion reserve fund.
ICBC says any insurance company must keep cash reserves to protect its customers. Adam Grossman with the corporation says they’re happy with current reserves. He insists they have that cash stash and they’re passing on rate reductions to customers and investing in other things that will benefit them too.
Grossman says the surplus is actually below the recommended industry standard. However, that mountain of cash is way too high for insurance experts, with one telling the Vancouver Sun if the crown corporation were privately owned, competitors would ‘eat their lunch.’
