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‘CORPORATE BULLSEYE’ SAYS SHERREIL

ICBC surplus held to under 112%.

British Columbia’s
Autoplan is in sound
financial shape, says its boss,
with a recorded income
surplus of $6.1 million in
1978 against an $8.6 million
deficit in the previous year.

Robbie D.  Sherrell,
president and chief
executive officer of ICBC,
said last week the annual
report for 1978 reflects the
crown corporation’s ob-
jective —- “To provide the
highest quality insurance
service on a breakeven basis
with income and expense in
balance.”

Sherrell said the $6.1
million surplus is a_ little

WRITE-OFF at an ICBC claim centre. Wrecks are sold

point of view by
management and staff

fecicating themselves to five
Ss.

These are Error
Elimination and Exercising
Economies and  Ef-
ficiencies,” he said. “To a
great extent, this enabled us
to hold the line.”

“The measure of the
corporation’s ability . to
provide high-quality cost-
effective auto insurance
coverage is seen in the fact
that 93 cents of every
premium dollar received was
directly related to claims
paid out,” he declared.

every week to licensed dealers and auto wreckers only.
In 1978 these salvage sales earned ICBC $6 million.

under 1.5 per cent of the
total income of $410 million.
“That,” he said, “is virtually
a corporate bullseye.”

The annual report shows
British Columbians paid
$356 million in vehicle
premiums and $11 million in
driver premiums fora totalof
$367 million. Invesiments
earned $43 million to make
total revenue at just over
$410 million, the highest in
the corporation's five year
history.

On the expenditure. side,
claims and claims —related
expenses cost $341 million,
another five year high. Tho
costs of operating Autoplan
totalled $61 million, bringing
total claims and expenses to
$402 million. ;

“This means it costs 17
cents on the dollar to run
British Columbia's
Autoplan,” said  Sherroll.
“That's one of the lowest
operating cost ratios in the
insurance industry.”

Sherrell, completing his
first year as president, said
increasing pressures and
demands on the Corporation
were stabilized from a cost

‘While recorded claims
increased by four per cent to
418,000, the overall average
cost per claim declined 12
per cent from $675 to $592.

In the case of bodily in-
juries, the average cost per
claim was reduced from
$6,547 to $4,441 — a drop of
32 per cent.

The annual report says as
a result of its sound financial
condition, the Corporation
was able“to continue and
expand its Safe Driving
Vehicle Discount’ program
which during the year
reduced renewal premiums
for more than 80 per cent of
vehicle owners.

During 1978, the Cor-
poration introduced Dial-A-
Claim, a phone-in claim
service for the convenience
of vehicle ownors
throughout the province. In
Vancouver where = an
average of 1,000 claims are
recorded every working day,
a number of claim centres
were equipped with
sophisticated clectronic
telephone communication
systems while other centres
had improved and updated
systems.

The corporation has also
implemented the procedures
necessary to begin spreading
Autoplan policy renewals
across the year. The
program which started April
1, 1979, will see some
400,000 renewals this year
with expiry dates other than
the end of February.

_ In December 1978 the
‘B.C. government requested

within 24 hours. .

the corporation to  in-
vestigate means of removing
age, sex, marital status and
possibly territory as factors
used im determining auto
insurance rates.

“Such a plan involves the —

redefinition of the
traditional classifications of
auto imsurance,” explained
Sherrell. “There is a growing
perception in North America

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Page 25, May 20, 1979 - Sunday News

that auco insurance should

be more: sensitive to in- —

dividual human rights,
particularly in factors over
which an individual has no
control such as age, sex and
marital status.”

“We are actively pursuing
this redefinition,” he said.

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