The current economic crisis is putting a squeeze on many businesses.including the insurance giant Insurance Corp. of British Columbia.
That's because for every $1 in premiums earned, ICBC pays out about $1.03 in claims and operating expenses.
It offsets that shortfall with its investment income, which already saw a dip this year.
In August, ICBC had this to say. "The current downturn in the equity markets will have a negative impact on our investment income as we move forward through 2008."
ICBC's Adam Grossman says its investments are conservative, mostly high quality bonds.
But its equity funds and property holdings are more volatile.
There is a contingency fund in place but it won't guarantee that people in B.C. will not see an increase in rates this year.
"We never guarantee going forward on investment rates. All we can say to the customer is we hope investment income will continue to be strong going forward,'' said.
As people brace for the economic storm, household budgets become paramount. So too do insurance rates, the cost of heating the house and medical premiums.
They are all reasons, the NDP say, to recall the legislature.
"We need to talk about the economic situation of the province. What plans the government has in store beyond the Olympics," said Bruce Ralston, the NDP Finance Critic.
A B.C. government spokesperson says there are no plans to call the legislature back before February to deal with the current financial meltdown.
But there is a budget consultation committee touring the province to get the views of British Columbians on how to move forward..
With a report by CTV British Columbia's Leah Hendry
