Price freezes and caps haven't brought prices down. A hybrid system of no-fault for minor claims and lawsuits for larger ones may be best

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During the B.C. election campaign, Conservative John Rustad has promised to end the state-owned Insurance Corporation of British Columbia (ICBC) monopoly and introduce fair, competitive insurance.

A state-owned insurance company should be charging lower premiums since it’s supposedly not earning that dirty word, profit. But ICBC is poorly managed and in 2019 had the highest average premiums in Canada — even as it incurred $1.15 billion in losses. Without earning some sort of surplus (i.e., profit), the company cannot invest in information technology and other capital to maintain or improve services. The B.C. government, facing voters’ wrath on this issue, has repeatedly looked for ways to reduce insurance costs. No-fault insurance and price caps on basic insurance were what it found. They have reduced average premiums since 2021, but many accident victims have been upset with inadequate compensation and no opportunity to sue for better relief.

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The same story may soon repeat itself in Alberta, which is reviewing reform options for the fifth time in the past two decades. Premiums have risen by almost........

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