Mustering up enthusiasm for ICBC's positive surplus in 2002 is as difficult a task as is getting excited over the province's better-than-expected deficit. The good news is that the deficit is about $1 billion under forecast. The bad news is the BC government is still spending this year over $2 billion more than it should.

Same said for ICBC. Congrats to management for cutting expenditures by 26 percent and posting $45 million in net income for 2002. But the irritable reminder that sucks the wind out of ICBC's chest beating is to recall its outdated operating model as a Crown Corporation.

ICBC can act like a successful private business subject to the rigours of the marketplace but it can never look itself in the mirror and say that it is anything but a self-regulated government monopoly.

Insulated from a properly functioning market and fair competition from other auto-insurers, ICBC will continue to charge over-inflated premiums to BC motorists. According to the Insurance Bureau of Canada, BC's average annual premium was the highest in the country in 2001.

ICBC's outdated insurance structure plunders premiums from exemplary drivers to subsidize high-risk motorists. If you're a young speed demon racking up violations and collisions, you can't believe your luck having ICBC underwrite your insurance policy with a built-in subsidy from low-risk drivers.

If your driving record is clear of any road-related indiscretions, your reward is over-inflated premiums, even if you qualify for ICBC's premium RoadStar package. As they say, no good deed goes unpunished, and ICBC's unregulated insurance monopoly will see to it.

Fair premium pricing for fair driving is where the rubber hits the road and where ICBC swerves off the map. BC motorists are entitled to the lower premiums their good driving records would accommodate under a system of full competition in auto insurance.

Recent government reforms to appoint an arms-length regulator to structure rates and prevent cross subsidization between ICBC's basic and optional insurance packages are laudable but fall short of fulfilling the government's New Era commitment "to introduce greater competition in auto insurance to increase choice and reduce motor vehicle premiums."

The Core Service's Review outcome aptly recognizes that the playing field for ICBC and private insurers is not level for competitive insurance products. The report concedes that ICBC's complete monopoly on basic coverage and its one stop shopping privilege gives it an unfair advantage in the optional market.

Another obstacle to competition and choice is the regulatory framework of ICBC. Until recently, the Crown Corporation was a self-regulated entity, largely to the chagrin of the private sector insurers. ICBC also falls under the bailiwick of the Minister of Finance who, in good conscience, cannot pursue public policy objectives and the business goals of ICBC in tandem. The public policy objectives of choice and open competition are at odds with ICBC's business goal to dominate the auto-insurance industry in both basic and optional coverage.

ICBC should be transferred to some other Ministry giving the Finance Minister the latitude to keep the crown monopoly accountable and to address the challenges of auto insurance choice and competition head on. The highroad should be full competition without delay.

Choice in the market place is power to the consumer. As is stands, we already insure our homes, our property and our lives from various insurance providers all competing in an open market. But ICBC's monopoly on auto insurance robs consumers of competition and choice. The first casualties are low risk BC motorists sand-bagged by the high premiums imposed by ICBC's virtual monopoly.

With other road related costs creeping up, such as gas taxes and potential tolls, the timing for full competition and choice in auto insurance could not improve over now.