ICBC to change the way it sets rates for brokers
As a result of changes to the federal Competition Act, ICBC is changing the way it sets rates paid to suppliers for the services they provide to ICBC and its customers. To remain in compliance with the Competition Act, ICBC will no longer negotiate rates with industry associations. Instead, it will establish rates based on analysis of market conditions. “We value our insurance partners,” says Adam Grossman, Senior Media Relations Advisor for ICBC, “and remain committed to paying them fair and reasonable rates.”
ICBC has been working closely with the Insurance Brokers Association of BC (IBABC) and the Credit Union Insurance Services Association (CUISA) to ensure everything remains in compliance with legislation. “We will not be negotiating with individual brokers,” says Grossman, ” but will establish a set rate that will be consistent among all.
ICBC is implementing a new consultation model that will help us establish rates, which includes feedback from industry. The model will involve an independent third-party research firm who will collect information from suppliers to help ICBC gain insight into market conditions. The IBABC and CUISA will then be invited to comment on the data collected before we establish broker remuneration for the coming year.
“This remuneration will be based on a number of factors,” says Grossman, “including an analysis and assessment of market conditions, the information received from the market research firm and the comments of the associations.”
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