How will BC insurance rates change in 2023?

The new year won’t offer much relief to British Columbians as experts predict that inflation levels won’t soon ease and will keep cost-of-living pressures high, according to a Global News report.

Consumers should expect life to “get pricier” in BC, Global News said, with utility and food prices set to increase this year, among other essentials. 

A report published by several Canadian universities forecasted that overall food prices will increase by 5-7% in 2023. Additionally, FortisBC has increased gas rates by 3.98% starting January 1. BC Hydro, meanwhile, requested a 2% increase in 2023 and an additional 2.7% in 2024.

Despite these increases, Global News said BC residents should be able to feel some relief from the Insurance Corporation of British Columbia’s (ICBC) plan to suspend basic auto insurance rates for another two years.

ICBC applied for the two-year rate freeze early in December as part of its efforts to aid BC residents with the rising cost of living. If approved by the Provincial Utilities Commission, the application will keep basic rates frozen for five years in a row.

On the other hand, home insurance price changes are harder to predict, according to the Insurance Bureau of Canada (IBC).

IBC Pacific vice president Aaron Sutherland told Global News that while the industry is impacted by inflation pressures and supply chain challenges, the market has so far remained competitive.

With over 40 home insurance providers in the province, Sutherland said the marketplace remains “healthy” and consumers should be able to shop around should their provider decide to change their premiums. He added that even as companies are forced to raise their rates as a result of inflation pressures, consumers have access to varied options due to other companies that are expanding into BC in order to capture additional market shares.