Techniques and systems are provided for processing video data. For example, video data can be obtained for processing by an encoding device or a decoding device. Bi-predictive motion compensation can then be performed for a current block of a picture of the video data. Performing the bi-predictive motion compensation includes deriving one or more local illumination compensation parameters for the current block using a template of the current block, a first template of a first reference picture, and a second template of a second reference picture. The templates can include neighboring samples of the current block, the first reference picture, and the second reference picture. The first template of the first reference picture and the second template of the second reference picture can be used simultaneously to derive the one or more local illumination compensation parameters.