A-B - EY ICBC

Question 1

EY - ICBC

What is ICBC?

Answer 1

A provincial Crown corporation owned and operated in the province

Question 2

EY - ICBC

What is ICBC’s role regarding mandatory basic auto insurance in BC?

Answer 2

• It is the sole provider of mandatory basic auto insurance, which is called BASIC AUTOPLAN
• Provides 5 coverages
  
  • TPL
  • UM
  • Accident Benefits
  • Hit & Run
  • Inverse Liability

Question 3

EY - ICBC

How is additional auto coverage available in BC? (2)

Answer 3

1. ICBC package called AUTOPLAN OPTIONAL
2. Private market

Question 4

EY - ICBC

Identify 5 challenges and the target outcomes to BC auto insurance.

Answer 4

1. Increasing FREQUENCY of accidents
   
   • Change high-risk driving behaviors
2. CLAIM-PER-ACCIDENT is increasing
   
   • Change claimant behavior by product redesign
3. SEVERITY of minor injuries is increasing
   
   • change focus from cash to prompt medical care
4. PROPORTION of cost due to minor injuries is increasing
   
   • Cap on pain & suffering claims
   • Reduction of legal costs
5. PREMIUMS don’t cover claim costs
   
   • Sustainable & Affordable premiums

Question 5

EY - ICBC

Identify 3 opportunities to address failings in BC auto insurance.

Answer 5

1. Increase road safety by changing high-risk driving habits
2. Redesign auto product
3. Interim measures by ICBC

Question 6

EY - ICBC

Identify specific initiatives to opportunity #1 (road safety)

Answer 6

• Cameras at intersections
• Automated speed enforcement

Question 7

EY - ICBC

Identify specific items to address for opportunity #2 (product redesign).

Answer 7

CAP

• Cap pain & suffering for minor injuries
• Increase Accident Benefits no-fault compensation for wages & medical payments
• Increase Proportion of premiums paid out in benefits (currently only 58%)

Question 8

EY - ICBC

Identify specific initiative regarding opportunity #3 (interim measures).

Answer 8

• Claims management improvement
• Non-insurance investments
• Change risk-rating model

Question 9

EY - ICBC

What are the guiding principles of an effective auto insurance system for BC?

Answer 9

FASES

1. Fair
2. Affordable
3. Sustainable
4. Efficient
5. Simple

Question 10

EY - ICBC

Describe the auto insurance coverage “Inverse Liability”.

Answer 10

Coverage in jurisdictions where local laws don’t allow claims against the person who caused the accident.