November 2008 news releases

Provincial news releases

Collision repair shops win international customer service awards — November 13
ICBC manages through third quarter — November 13
Police target dangerous behaviours at intersections — November 6

Collision repair shops win international customer service awards — November 13

Collision repair shops across the province have been recognized internationally for excellent customer service in the collision repair industry. Twenty-one ICBC accredited repair shops won 2008 AutocheX Premier Achiever Awards. The winners were recognized at the International Autobody Congress and Exposition (NACE) on November 6, 2008. Winners were selected out of 9,000 entries from across North America for achieving customer satisfaction scores in the top five per cent of shops measured in 2008.

"ICBC is committed to providing our customers with a hassle-free claims experience. And to do this, we need to provide excellent customer service from start to finish," said ICBC senior vice-president of Claims, Craig Horton. "We're extremely proud of our 21 key business partners who are providing outstanding service to customers while their vehicle is being repaired."

To be eligible for the awards, a c.a.r. shop VALET facility must track customer satisfaction results on a monthly basis to monitor and improve performance. Key factors included as measures in the customer satisfaction tracking are the shop's ability to keep the customer informed, provide on-time deliveries and quality repairs, and the customer's willingness to recommend the shop to friends and family. Approximately 70,000 customers in B.C. are surveyed annually, as a part of this customer service tracking.

ICBC partners with AutocheX to independently and objectively measure customer satisfaction levels at the 402 shops in its c.a.r. shop VALET program. C.a.r. shop VALET facilities are accredited by ICBC to provide safe, quality repairs that are guaranteed for as long as the customer owns the vehicle. They will also help arrange alternative transportation for customers, at no extra cost, while their vehicle is being repaired.

The 2008 winners located throughout B.C. are:

* repeat winner

MEDIA CONTACTS:
Michelle Hargrave: Southern Interior and North Central
(250) 979-4642

Kim The: Lower Mainland and Vancouver Island
(604) 296-1539

ICBC manages through third quarter — November 13

Conservative and diversified investments lessen impact of market downturn

ICBC has reported its financial results for the first nine months of 2008, showing strong net income despite a drop in investments. However, the recent turmoil in the financial markets is expected to have a more substantial and negative impact on the corporation's fourth quarter.

Net income at ICBC for the first three quarters of 2008 was $437 million, 15 percent lower than for the same period last year of $513 million. This decrease is largely the result of a decline in investment income, which stood at $360 million year-to-date for the third quarter of 2008, compared to $526 million for the first three quarters of 2007 (including the sale of the Central City development in Surrey last year which generated $133 million in investment income).

"In terms of premium revenue, claims and operating costs, our company results are solid but, like everyone else, we have been affected by the downturn in the financial markets," said Geri Prior, ICBC's interim president and CEO. "However, we are coping during these tough times, due in large part to our diversified and conservative investment strategy, and a moderation in the increase of claims costs. We entered this economic downturn with strong retained earnings which act as a contingency fund to help protect our customers. We ask our customers to do their part by driving safely and reducing crashes to help keep rates low and stable."

ICBC did not increase basic premium rates this year and, as of July 1, 2008, ICBC's optional rates decreased by an average of three percent. Customers who have purchased the same basic and optional policies from ICBC over the last five years have seen only a $2 increase on average in their premium. Claims and related costs for the nine months ending September 30, 2008, were $2.2 billion, approximately the same as for the same period in 2007.

"The downward pressure in the equity markets and changing economic trends mean we cannot rely on investment income to the same extent we have in the past," said Prior.

Investments

• More than 65 percent of ICBC's investment portfolio is invested in high-quality bonds supplemented with a smaller allocation of equity investments. ICBC saw losses on equities during the third quarter, which were partially offset by gains on bonds.
• ICBC's investment income for the first nine months of 2008 was $166 million lower than its investment income for the first nine months of 2007, with the corporation anticipating a further drop in its investment income for the fourth quarter of 2008. The sale of the Central City development in Surrey in the third quarter of 2007 partially explains the decrease in investment income in 2008, with the remainder attributed to lower returns on investments.
• The downturn in the financial markets has also had a negative impact on the value of ICBC's unrealized gains which has reduced the corporation's contingency fund.

Claims costs

• There was a slow down in the growth of claims costs during the third quarter of 2008, in part due to a number of claims-reduction initiatives at ICBC, less rain than is usually seen in the first nine months of the year, and a moderation in vehicle population growth.
• ICBC's commitment to investing in road safety to reduce the number and severity of crashes also continues to play a positive role in lowering claims costs.

Insurance premiums

• Premiums earned for the first nine months of 2008 increased to $2.7 billion from $2.6 billion for the same period in 2007. The number of insured vehicles on BC's roads was up by 70,000 in the first nine months of 2008 compared to the same period last year, although in the last few months this growth has been slowing.

Insurance rates

• ICBC lowered its optional insurance rates this year for the third time in four years. Optional rates were reduced partly as a result of the continued decline in auto theft across the province - which is down from 12,000 to 9,900, or 17.5 percent, from January 1 to September 30, 2008, compared to the same period for last year. Basic rates for 2008 stayed the same for the second time in four years.

Operating costs

• 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 - was 18.5 percent for the first nine months of 2008, which continues to compare very favourably to the insurance industry.

Customer satisfaction scores

• ICBC continues to maintain high levels of customer satisfaction, as confirmed by independent third-party research from NRG Research Group. Levels of customer satisfaction with ICBC for our various lines of business are:

  Claims services: 84%
  Driver licensing services: 93%
  Insurance services: 93%

MEDIA CONTACTS:
Adam Grossman:
(604) 982-1332

Police target dangerous behaviours at intersections — November 6

More than 270 crashes happen at intersections every day

B.C.'s Solicitor General John van Dongen joined police and ICBC this morning to kick off a month-long campaign to reduce intersection crashes across B.C.

Following a media briefing at the Vancouver Police Department's headquarters, media were invited to the intersection of 41st and Knight Street where plain-clothes officers targeted the most common driving behaviours that lead to intersection crashes.

"We all need to take responsibility for our driving behaviour if we want our roads to be safer," said Solicitor General John van Dongen. "The province, police, ICBC and community volunteers are doing their part by stepping up efforts to reduce intersection crashes and save lives."

Since 2003, more than one million drivers have been involved in an intersection crash. "More than 40 per cent of all police-attended crashes in B.C. occur at intersections. That's simply too many. Province-wide, the police will be targeting drivers that choose to exhibit these dangerous behaviours," said Inspector Norm Gaumont, Traffic Services.

Intersection crashes also include collisions involving pedestrians. According to a five-year average (2003-2007), approximately 1,600 pedestrians are injured and 27 are killed in intersection-related incidents each year.

"Many people think tailgating or failing to yield are harmless. The fact is, they cause crashes that can injure or kill people," said Road Safety director Nicolas Jimenez. "Driving smart means really thinking about consequences. Small changes can have really positive impacts-on you and others."

The campaign features radio and television advertisements reminding drivers to drive smart. Also during the campaign month, police will increase enforcement at high-crash locations in communities across the province.

The fewer and less severe the crashes, the safer B.C. roads will be, which also translates into low and stable auto insurance rates for ICBC customers.

This campaign runs through the month of November. For more information, visit Intersections: Watch out!

MEDIA CONTACTS:
Tom Webster:
604-230-1964

Cindy Kralj
604-315-1430