ICBC reminds motorists to use extra caution this weekend — May 20

Slow down and live -that's the message from ICBC to motorists this Victoria Day long weekend.

The three— Day holiday can be a high-risk time on B.C. roads. Last year, 838 people were injured, seven people were killed, and there were more than 2,300 car crashes in B.C. during the May long weekend.

Speed was a factor in more than 38 per cent of fatal crashes in 2002, while alcohol was a factor in 24 per cent.

Specific road safety tips include:

• Plan ahead and be realistic about travel time, allowing extra time for possible delays that may arise due to traffic volumes or construction.
• Slow down and leave plenty of space between your vehicle and the one in front.
• Get plenty of rest before you hit the road. If you feel tired, pull over and take a nap or take a walk to refresh yourself.
• Keep distractions to a minimum. That means don't talk on your cell phone, try to read a map, or eat while you are driving.
• Don't drink and drive.

For more information, or to take part in the Community Crash Reduction Challenge safety campaign, visit www.icbc.com.

For more information contact:
Doug Henderson 604-982-1332
Moira Wellwood 604-982-2480

ICBC announces executive change — May 13

T. Richard Turner, Chair of the Insurance Corporation of British Columbia, today announced that Nick Geer will be leaving the Corporation on June 30th, 2004.

"After bringing about a remarkable turnaround at ICBC, the Board deeply appreciates what Nick Geer has accomplished," says Turner. "Nick and I met last week and it was concluded that it is time for a change in leadership at ICBC. The Corporation is on a very sound financial and operational footing, and it is time for a leader for the long term to be at the helm of ICBC. We are commencing a search for a new CEO, and I appreciate that Nick will be here until the end of next month."

"I thank the Board for the opportunity to be part of the recovery of ICBC over the last three years," says Geer, "and I thank the management and staff of the Corporation for their help in producing such positive operating and financial results. ICBC is now financially stable and operating efficiently for its customers.

"I wish all of the management and staff of ICBC the very best for the future," Geer adds.

Nick Geer was appointed Chair of ICBC in July, 2001, and became Chief Executive Officer in September, 2002.

Turner adds that Geer is being treated in accordance with his contract and PSEC guidelines. He will receive a payment of $262,500 in lieu of salary; an amount of $185,000 for performance bonuses earned; a car allowance and other benefits when he leaves the Corporation.

"We will appoint an interim CEO to fill the gap between Nick's departure and the arrival of a new CEO," says Turner.

"On behalf of the Board, I thank Nick Geer for his service to ICBC and for his commitment to ICBC customers, staff and other stakeholders."

For more information contact:
Moira Wellwood 604-982-2480
Doug Henderson 604-982-1332

BC drivers challenged to reduce crashes in May — May 4

The provincial government, ICBC, and Autoplan brokers are challenging British Columbians to reduce the number of crashes in their communities.

Between May 5 and 27 this year, ICBC predicts there will be more than 16,000 crashes involving residents of B.C. That's almost 700 crashes a day or a crash every two minutes. More than 7,000 residents will be injured and there will be at least one fatality a day.

Starting May 5 and running for the next 23 days, communities will focus on reducing the number of crashes involving their residents in the Community Crash Reduction Challenge.

"We want to make B.C. roads safer for everyone," said the Honourable Rich Coleman, Minister of Public Safety and Solicitor General. "The Challenge gives each one of us the opportunity to increase our awareness around driving safely, so we can work at reducing the number of crashes that occur each year in British Columbia."

As an incentive for residents to drive safely over the Challenge period, communities and individuals are eligible for grants and prizes.

Communities have been placed into five categories, based on their population. The registered community that shows the greatest percentage reduction of crashes in their category between May 5 and 27 can win a road safety grant of between $5,000 and $35,000.

Individuals can take a pledge online at www.icbc.com to drive safely - and be eligible to win travel vouchers, cash and other prizes.

"While the winners in each prize category will be recognized in June when results are tabulated, everyone's a winner when we reduce harm on our roads," said Nick Geer, ICBC President and CEO.

"ICBC invests in road safety programs that provide a direct benefit through reduced claims costs," Geer added. "These programs help keep insurance rates as low as possible for our customers."

The Challenge has been endorsed by prominent community leaders and organizations and so far, more than 85 communities have registered. Residents can find out how they compare to other communities in their category by logging onto www.icbc.com. The web site also highlights some of the factors contributing to crashes in each community, and local police will be targeting unsafe speed, impairment and intersections with additional enforcement during May 5 to 27.

Schools, community groups, businesses, clubs and organizations can get involved by issuing challenges to schools, groups or branch offices in other communities.

For more information contact:
Doug Henderson 604-982-1332

ICBC reports first quarter net income of $81.6 million — May 3

Company is holding the line on costs and rates

ICBC reported net income of $81.6 million for the quarter ended March 31, 2004, which compares to a net income of $4.7 million for the same quarter last year.

“ICBC's net income stays in the company and protects customers,” said Nick Geer, ICBC's president and CEO. Retained earnings allow the company to absorb unexpected costs arising from unusual events and other factors without dramatic rate increases.

“We're holding the line on operating costs,” said Geer, “and keeping rates low and stable for our customers.” ICBC has not implemented a rate increase for 2004, but the company did pass on the 0.4 per cent increase in the premium tax.

Insurance premiums earned in the first quarter increased to $726 million from $674 million for the same quarter last year. Premium revenue growth is due to the impact of the rate adjustment announced in November 2002, increased optional coverage sales, a 3.1 per cent increase in the number of basic policies sold during the quarter and no market share loss.

Claims and related costs for the quarter were $636 million, compared to $621 million for the same quarter in 2003. There was an increase in the average claim cost, mainly driven by increases in high-value injury costs. The trend of increases in average claims costs, which emerged in 2003, has continued into 2004 and remains an area of concern for ICBC.

Investment income was $120 million for the quarter, compared to $75 million in the same quarter last year. This produced a rate of return of 7.5 per cent, compared to 5.2 per cent in the same quarter last year. The strong investment results are due to the recorded gains on the sale of equities and bonds.

For more information contact:
Doug McClelland 604-982-2476

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