34 ~ Friday, April 16, 1993 - North Shore News

Lower than expected losses suggest turnaround

ICBC AY O TOPIC
by Ken Hardie

THERE’S A. saying in
business that a company’s
annual report is the only
document read with more
interest before it’s printed
than after. .

These reports must represent an
accurate accounting of a com-
pany’s financial performance,
which often involves an analysis
by independent . experts who
review and certify information
prepared by the company’s head
of finance.

More often than not, the
average sharcholder takes a quick
glance at the picture of the presi-
dent and the statement of profit
or toss, after which, the annual
report hits the recycling bin.

But if you insure a vehicle
B.C., and especially if you are
concerned about rising Autoplan
premiums, you will find detailed
answers to a lot of questions in
ICBC’s 1992 Annual Report.

The report, available at public
libraries or at ICBC offices, in-
dicates a turnaround may be on
the horizon. The first indication is

the Jower-than- cexpected loss Tor
the corporation in 1992,

In the face of record SEB
billion in’ claims costs for 1992
and a drop in investment income
due to lower interest rates, ICBC
posted an aperating loss of $149
million. This is lower than the
$180 million loss for 1991, and
significantly under the predictions
made last May of a $197 million
loss for 1992,

Tighter financial management at
ICBC has been credited with this
result.

When senior managers learned
that the 1992 loss could reach up
to $200 million, they embarked on
two courses of action, The first
was to cut $10.1 million from
operating budgets and the second
was the introduction in August of
programs to cuntrol claims costs.

Programs such as those-to curb
claims handling expenses, plus
measures to ensure that settle.

ments were properly determines, -

cut another $32 million from the
year-end loss. Among the most
notable claims cost control pro-
grams introduced in 1992 was the
“no crash, no cash'’ policy for
whiplash injuries claimed from
minimal or no damage ccllisions,
settlement limits for minor to

‘moderate whiplash claims and a

telephone ‘‘tip-line’’ for accident
witnesses or those aware of

Next week Greg Wilson test
drives the 1994 ‘infinity Q45,

INCLUDES FREIGHT & Pb)

hiss ‘the car the critics can't

believe is'being sold at this

Jncredibly low price.

a ou 12 750°

INCLUDES FREIGHT a PO

D.O.H.C. ~ 1.9 litre engine,
5 speed transmission, radial
tres, alloy wheels &a whole
lot of funi..

ces ow’ 15,450

INCLUDES FREIGHT & Pot”

“the best af both worlds,

‘sedan practicality with sport

coupe performance. oe
oar’ 1595

INCLUDES FREIGHT 4 POL”

“COME. IN TODAY & VIEW THE COMPLETE
SATURN SAAB ISUZU LINE, NORTH = MERIC a

larger than the 9.5% announced
fast November,

How much larger? Apparently
without the cost controls brought
into effect last summer, motorists
could have been tagged with in-

creases Of 17 or 18% for 1993.

Next week, we will outline some
major trends that have developed
over the past five years, as
reported in ICBC’s Annual Report
for 1992.

fraudulent, claims.

According to an independent
analysis done by a team of ac-
tuaries, these programs to reduce
ICBC's deficit also helped B
motorists avoid premium inere

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eh is