ICBC sees profits increase in 2007

The Insurance Corporation of British Columbia (ICBC) has reported a profit of Cdn$642 million for 2007, an increase over 2006’s Cdn$350 million.The corporation also reported high customer satisfaction scores for last year and announced that it would be cutting its optional coverage rates in 2008.ICBC reported Cdn$3.572 billion in premiums written for 2007, a slight decrease from 2006’s Cdn$3.575 billion.The average premium for optional coverage decreased 3.8% in 2007, and will decrease by an additional 3% in 2008, a company release says.Premiums for basic coverage increased by 3.3% in 2007, mainly due to increases in the average cost of payouts for customers with injury claims. “Higher costs for injury claims predominantly affects basic insurance because about three-quarters of all payouts for injuries are under basic coverage,” the release says.Through the use of a third-party organization to gauge levels of customer satisfaction for the year, ICBC met or exceeded the year’s targets. The levels of customer satisfaction included: insurance services, 93%; claims service, 84%; and driver licensing services 91%. “ICBC’s financial performance in 2007 has allowed the company to build capital up to the required levels, ahead of schedule,” said Paul Taylor, ICBC president and CEO.”This capital serves as a contingency fund to help keep rates low and stable by absorbing unexpected spikes in claims costs or unanticipated significant declines in investment income.”