ICBC projecting more than $1B loss for the year

The B.C. Utilities Commission has asked ICBC to provide information on potential rate hikes through 2020, but the public insurer has so far refused. Nov. 22, 2016. (CTV)

ICBC is projecting more than $1 billion in losses by the end of the fiscal year, blaming the rising cost of claims.

The public auto insurer posted a net loss of $860 million for the first nine months of the current fiscal year and is now projecting a year-end net loss of $1.18 billion.

ICBC says it currently has 110,000 open injury claims, with an estimated cost of $7 billion, and an estimated $12 billion in unpaid injury claims.

The announcement comes a day after a government review found that the perception ICBC tries to lowball settlement offers or needlessly follow injury claims isn't backed up by evidence.

The review had been launched to determine how much blame ICBC should take for climbing litigation costs, which are a major factor in what officials have dubbed a "dumpster fire" in the insurer's finances.

But, ICBC does claim its losses stem from increased settlement costs and "aggressive pressure from plaintiff counsel" resulting in higher payouts.

"The rising cost of litigated injury claims is the single biggest pressure currently being put on ICBC and the insurance rates British Columbians are paying," the corporation says in a release.