A-B - EY ICBC

Question 1

EY - ICBC

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

Answer 1

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 2

EY - ICBC

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

Answer 2

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