ICBC Policies Reviewed by Competition Bureau

OTTAWA, August 19, 2008 – Insurance Corporation of British Columbia’s (ICBC) policies relating to optional auto insurance do not contravene the Competition Act, a Competition Bureau investigation has concluded.

The Bureau initiated its inquiry after receiving a complaint alleging that ICBC’s policies were anti-competitive and had prevented and substantially lessened competition in the optional auto insurance market in British Columbia. The inquiry focused on policies that:

• prevent brokers affiliated with competing insurance companies from selling optional auto insurance from both their affiliate and ICBC; and
  
  
• prohibit screen scraping by brokers, which means not allowing brokers to capture customer data from ICBC's information system in order to process transactions on behalf of another insurance company.
  
  

The Bureau reviewed ICBC’s actions and policies under the abuse of dominance provision of the Competition Act. The Bureau found that although ICBC's policies restrict how its competitors conduct their business, reasonable alternatives are readily available. Consequently, any resulting impact on competition from these policies is unlikely to be substantial.

Where there is evidence of abuse of dominance, remedies available to the Bureau include applying to the Competition Tribunal for an order prohibiting the firm or firms from engaging in anti-competitive conduct.

For more information on the Bureau's inquiry, please see the technical backgrounder.

The Competition Bureau is an independent agency that contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

For media enquiries, please contact:
Marilyne Nahum
Communications Advisor
External Relations and Public Affairs Branch
819-953-9760

For general enquiries, please contact:
Information Centre
Competition Bureau
819-997-4282
Toll free: 1-800-348-5358
TDD (hearing impaired): 1-800-642-3844
compbureau@cb-bc.gc.ca