ICBC Fairness Commissioner releases annual report —
May 15

Fairness process is working for ICBC customers

The 2007 report of ICBC’s Fairness Commissioner has been released and shows that customers are benefiting from the Corporation’s fairness process.

In 2007, the Fairness Commissioner facilitated a solution or agreement between the customer and ICBC in eight of the files received. Five of these cases resulted in recommendations being made to ICBC, and all of those recommendations were implemented. Of the 175 enquiries received, 110 were found to be unsubstantiated, 43 were resolved by ICBC’s Privacy and Fair Practices department and 12 were outside the Fairness Commissioner’s jurisdiction.

“The overwhelming majority of decisions taken by ICBC employees and agents in their dealings with the Corporation’s customers are reasonable and fair,” said Peter Burns, Q.C., ICBC Fairness Commissioner. “Even in those cases dealt with by the Fairness Commissioner, only a few required a response based upon a lack of fairness in the decision-making process or with the policy being applied.” ICBC adopted the recommendations that resulted from five cases.

The Fairness Commissioner provides ICBC customers with an independent, arm’s-length review of concerns they have not been able to resolve through other channels. If the Commissioner believes that an ICBC decision, procedure or policy is unfair, he makes recommendations to ICBC to remedy the issue.

“We are committed to meeting the needs of our customers and ensuring they are treated fairly,” said Geri Prior, ICBC’s interim president and CEO. “We have a comprehensive process at ICBC to ensure we listen to our customers and respond to their needs. It allows us to build the trust and confidence of our customers. If an issue remains unresolved, customers are welcome to write to the Fairness Commissioner to share their concern.”

The Fairness Commissioner position was created in 2001 to reinforce ICBC’s commitment to customer service and fairness. The objective of the Office of the Fairness Commissioner is to ensure that customers impacted by ICBC’s products or services are treated fairly and responsibly in terms of process and administration. For more information on ICBC’s Fairness Process, visit www.icbc.com/inside_icbc/dispute/process.asp.

Media Contact:
Doug McClelland
Tel: 604-982-2476

100,000 Winter Games licence plate sold — May 12

British Columbians show their support for the Vancouver 2010 Olympic and Paralympic Winter Games

Just over one year ago, on April 16, 2007, the first 2010 Winter Games licence plate was sold. Since then, over 100,000 British Columbians have chosen to purchase 2010 Winter Games licence plates. On April 9, 2008, Westbank resident, Kelly Milroy became the 100,000 purchaser of a Winter Games plate.

Olympic medalist Georgina Wheatcroft and ICBC's Chris Gibson, Regional Manager, Sales and Marketing presented Kelly with a plaque and a gift basket on May 2, 2008 to thank him for his support.

"These are tremendous sales results," said ICBC's Jeff Schulz, Vice President, Strategic Marketing. "Selling 100,000 Winter Games licence plates in one year demonstrates British Columbians are proud supporters of the Games."

Motorists all over British Columbia are showing their support with approximately 64,000 plates sold in the Lower Mainland and Fraser Valley, 13,000 sold on Vancouver Island, 16,000 sold in the Southern Interior and 7,000 sold in Northern B.C.

"It's a personal commitment of support for the 2010 Games when a British Columbian buys and proudly drives with a 2010 plate, so selling 100,000 plates is a real milestone," said Dave Cobb, Executive Vice President of Revenue, Marketing and Communications at VANOC. "It's also a very tangible sign that excitement is continuing to build throughout the province. Congratulations to ICBC and we hope British Columbians will continue to support this program which will help us stage Games the whole province and all of Canada will be proud of."

Winter Games licence plates can be purchased at local Autoplan broker offices for an initial fee of $35 and an annual renewal fee of $25. Net proceeds support the Vancouver 2010 Olympic and Paralympic Winter Games and our Canadian Olympic Team.

Additional information about 2010 Winter Games licence plates is available at local Autoplan broker offices or www.icbc.com.

Media Contact:
Doug Henderson
Tel: 604-982-1332

ICBC welcomes new member to Board of Directors — May 9

T. Richard Turner, Chairman of the Board of Directors at the Insurance Corporation of British Columbia , is pleased to announce that Stacy Shields has been appointed as the newest member of ICBC’s Board of Directors.

Ms. Shields is currently the vice-president of Human Resources for the Pacific National Exhibition (PNE), and sits on their executive management committee. She has 10 years experience in Human Resources with expertise in labour relations, compensation, and policy development.

Ms. Shields has a Bachelors degree in Science from the University of BC, and is a Certified Human Resources Professional (CHRP).

Mr. Turner would also like to announce the re-appointment of two current board members. T. Michael Porter and Paul Haggis have been re-appointed to ICBC’s board, effective July 13, 2008 . Mr. Porter’s new term ends July 13, 2010 , while Mr. Haggis’s new term ends July 13, 2011 .

Members of the board are stewards of the corporation. They set overall standards of conduct for ICBC, and are responsible for overseeing management, which is in turn responsible for day-to-day operations. To find out more about the ICBC Board of Directors, please visit icbc.com.

Media Contact:
Doug McClelland
Tel: 604-982-2476

Strong first quarter performance at ICBC — May 8

High investment income and low operating costs drive results

ICBC has reported strong financial results for the first three months of 2008.

Net income for the first quarter of 2008 is reported at $102 million, down slightly from $111 million for same period in 2007.

"ICBC's strong financial results this quarter are the result of better-than-expected investment income and continued attention to operating costs," said Geri Prior, ICBC's interim president and CEO. "As the provincial economy continues to grow, there are more insured cars on the road, and our customers are increasing their coverage with us."

"For ICBC and its customers, 2007 was an exceptionally strong year financially, and 2008 is getting off to a good start."

Claims and related costs for the three months ending March 31, 2008 were $761 million, three per cent higher than for the same period in 2007.

"The moderating increase in claims costs has continued into the new year, which is good news for customers," said Prior. "Trends in claims costs are the primary factor in determining rates."

Strong financial management

• Investment income continues to drive net income. Net income for the quarter was $102 million, including investment income of $125 million. ICBC's insurance operations ended the quarter on a more-or-less breakeven basis.
• In line with market trends, ICBC's investment income of $125 million for the first three months of 2008 was lower than the $154 million investment income for the same period last year. Results saw lower gains on equities and higher gains on bonds compared to the same quarter in 2007. ICBC maintains a conservative investment policy with the majority of assets invested in high-quality, investment-grade bonds.
• ICBC continues to lead the industry in low operating costs. The expense ratio - operating costs, broker commissions and premium taxes as a percentage of earned premiums - is 18.3 per cent for the first three months of 2008, compared to 18.0 per cent for the first quarter of 2007.

Moderating trend on claims costs continues

• Net claims costs incurred for the first quarter were $689 million, representing an increase of 3.1 per cent from the first quarter of the previous year, despite unusually dry weather so far this year.
• Longer term trends show ongoing increases in the costs associated with injury claims. This predominantly affects rates for basic insurance, because more than 80 per cent of all payouts for injury claims are under basic coverage.
• The increased claims costs are partially due to higher estimates for the costs of all unpaid claims due to lower prevailing interest rates. Lower interest rates mean relatively higher amounts need to be set aside for claims that have occurred but not yet been fully paid out.

Ongoing decrease in auto crime costs

• There have been significant decreases in the number of stolen vehicles in BC for each of the last five years. This trend is continuing into 2008.
• The reasons for the dropping auto theft rate are the success of the Bait Car program and other enforcement efforts, as well as the growing prevalence of immobilizers in vehicles.

High customer satisfaction scores

• High levels of customer satisfaction continue, as confirmed by an independent third-party organization (NRG Research Group).
  • Levels of customer satisfaction for:
  • Insurance services 94.7%
  • Claims services 82.0%
  • Drivers licensing services 92.0%

Low and stable rates

• ICBC has held the line on rates. Rates for optional insurance are decreasing by 3.0 per cent on average, effective July 1, 2008, partly due to declining costs for auto theft claims. Furthermore, ICBC will not be proposing an increase in rates for basic insurance this year.
• Customers who have purchased the same Basic and Optional coverages from ICBC over the last five years have seen only a $2 increase on average in their premium over this five year period.

Ongoing investments in road safety

• ICBC continues to invest in road safety programs to reduce the number and severity of crashes, and to help lower claims costs. Examples include support for enhanced traffic enforcement by police, road improvements at high-crash locations, and public awareness campaigns.
• Drivers can do their part by driving safely. Bad driving habits affect everyone's insurance rates.

Media Contact:
Doug McClelland
Tel: 604-982-2476

ICBC announces interim CEO — May 2

T. Richard Turner, on behalf of ICBC’s board of directors, has announced the appointment of Geri Prior as interim president and CEO effective today.  Prior was most recently ICBC’s chief financial officer.

Prior has 21 years of experience at ICBC.  She has served as the company’s chief financial officer and as a member of the executive committee since 2000.  Before that, Prior had led teams in change management, cost containment and planning.  She also worked in various audit roles after joining the company in 1987.

Before joining ICBC, Prior held a number of positions in the audit practice at Touche Ross & Co.  Prior holds a commerce degree from the University of British Columbia and is a Chartered Accountant.

As interim CEO, Geri will continue to work closely with members of the executive and management to implement ICBC’s business plan.

Also this week, the ICBC’s board of directors engaged Ray & Berndtson, an executive recruitment firm, to conduct a search for a permanent president and CEO.

Media Contact:
Doug McClelland
Tel: 604-982-2476

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