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Fallout is mounting over the Insurance Corp. of B.C.’s grim financial situation that could translate to large insurance-premium hikes for B.C. drivers unless “immediate action” is taken.

Attorney-General David Eby is expected to hold a news conference Monday to address steps the NDP government plans to take to stem the hemorrhaging, with a $1.3-billion operating loss projected by the end of the fiscal year March 1.

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The public auto-insurer confirmed its “sizable and significant loss” in a statement Sunday after a Postmedia News report on the Crown corporation’s staggering financial losses.

ICBC chalked up the losses to the increase in the number of crashes, a surge in claims and ballooning costs of claims.

“Simply put, the amount of premiums we are collecting from customers is not covering the ever-increasing amounts we are paying out in claims costs,” said ICBC, which reported a $935-million net loss for the first nine months of the fiscal year from April 1 to Dec. 31 last year, compared with a $232-million loss over the same period in 2016-17. “This is not sustainable.”