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

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“the best af both worlds,

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coupe performance. oe oar’ 1595

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“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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