***The following is a guest blog post by CTF supporter Ramesh Ranjan.

It has been well noted that the Insurance Corporation of British Columbia has grown out of control in a number of ways, so much so that the need for alternatives become increasingly necessary. There is really no need to overstate this because the facts speak for themselves.

First, as noted by many including CTF’s Jordan Bateman, ICBC’s executive salaries have grown and the number of executives being hired overall has skyrocketed over the last few years. (http://taxpayer.com/british-columbia/bc-icbc-executives-make-drunken-sailors-blush)

Second, insurance premium rates are rising in B.C., thanks to ICBC’s hikes each year including one for 2012. (http://www.canadianunderwriter.ca/news/icbc-receives-approval-for-11-2-rate-hike/1001633700/) Rates in B.C. are among the highest in all of Canada. (http://www.fraserinstitute.org/research-news/news/display.aspx?id=2147483788)

More importantly, it has also been found that government intervention in the auto industry has led to higher premiums (http://beaconnews.ca/blog/2011/10/new-study-claims-government-auto-insurance-programs-more-expensive/). This should not be a surprise and as we all know, ICBC is the universal insurer for auto insurance in B.C.

The problems with ICBC are internal and external. Internally, as I have mentioned, its executives are compensated at a high rate and have pay increases that are nowhere near private sector comparisons. These are costs. Public sector unions exacerbate these costs, which externally, drive up prices and these costs are born by you, the taxpayer and consumer.

Simple economics show that a market for a good or service creates competition which drives down prices and increases quality. So in that case, why not open up private insurance companies to offer B.C. consumers choices? Furthermore, private companies try to mitigate costs. They would not simply hire executives at albatross rates for albatross contracts, despite the fact that it is private money they are using as opposed to ICBC spending public money on executives.

The very moral idea of the government controlling an industry is absurd. Cars are a consumer good. Car parts and accessories are consumer goods. Why then is car insurance in B.C. monopolized by the provincial government?

Private car insurance exists in many provinces in Canada, most of which face lower premiums than here in B.C. It also exists in the United States, where you can insure 3-5 cars for the same price that you insure 1-2 cars here (depending on car, driving history, area, etc.). So it clearly works.

I recognize that car safety is important and having safe drivers and driving conditions are conducive to a healthy province. However, a small department of motor of vehicles can take care of that. The very idea of government control of the market leads to higher prices and more bureaucracy. It is time for a change.

Ramesh was born in Vancouver, British Columbia and raised in Richmond. With a degree from Simon Fraser University specializing in Economics, he has worked in media relations and communications and now works in marketing and social media in the sportswear industry. You can follow him on Twitter @rammer17.