Posted 02 July 2018 - 03:01 PM
I never suggested that it’s a sure thing. But just like every insurance company, they have an investment portfolio and a team of finance professionals that manage money.
As for knowing for a fact if it will reinvest the capital or put ornaments towards its bottom line, it’s emphatically the former. Firstly, because of insurance industry legislation that requires a certain amount of solvency and capital reserves. And secondly, ICBC doesn’t need to sell the farm to pay for the cattle because it will no longer be in massive financial hole because of how minor injuries will be treated come April 1, 2019.
ICBC’s financial situation came about primarily because it’s the last full tort jurisdiction in North America and relatedly, because of how it handles claims (and claimants) has resulted in a massive uptick in represented claims (ie claimants lawyering up), which are more complicated and therefore more expensive.