Strategy 2014 & Strategic Enablers

July 12, 2010

Today’s Agenda • Revisit March 17 meeting• Review today’s objectives • Ground rules for series• Strategy 2014 and key objectives• Why change – detail• ICBC customer experience insights• Strategic enablers (TP & non-TP) • Looking ahead• Questions

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March 17, 2010 Meeting

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During our last meeting, we started the conversation about Strategy 2014:

Provided a high-level overview of Strategy 2014 & Transformation Program (TP) Provided a high-level rationale for renewing our business Provided a high-level overview of the TP timeline and the Claims/Pricing projects

Ground Rules

• Forum is not part of the collective bargaining process – it informs context for forthcoming negotiations

• We ask that you exercise patience as we share our plans over the coming months

• Not able to answer questions such as potential site closures or employee impacts, because we do not yet know

• We will follow up on appropriate questions that cannot be answered at the sessions

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Today’s Meeting Objectives

Continue the conversation, but include more information and detail:

Build an understanding of why business renewal is critical to our future Enhance your understanding of Strategy 2014, key objectives and strategic enablers

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2014 Strategy

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Key Objectives

Maintain financial Maintain financial stabilitystability

Do we really need to change?

• Low employee turnover

• Strong customer satisfaction scores

• Brokers are happy

• Healthy financials

Why change? For our customers…

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• Only 4 out of 10 customers are willing to speak positively about ICBC:

– While transaction satisfaction is consistently high, customers do not feel ICBC delivers good value for the price they pay

– Customers rate us low on attributes that mean the most to them: trust, respect, provide peace of mind, hassle-free service and reliability

• Provide the basis for continual renewal of the business to support customer experience

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• What the future looks like for our customers

• Custom products, approaches and communications channels

• Ubiquitous, secure, reliable, services, and fair pricing aligned to driver risk

• Convenience and choice; 24x7 access and support

• Customer-driven interactions

• Better understanding of price/value proposition

Why Change?

Why change? For our people…

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• Complicated systems compromise our employees’ ability to provide customers with a consistently exceptional customer experience

• Cumbersome processes, outdated tools and multiple sources of inconsistent information challenge our customer service delivery and compromise our employee experience

• Outdated processes and systems result in redundant work that is less satisfying and customer focused

• Our new generation employee wants more flexible work options and development opportunities, in an environment where they can continuously learn and grow

Why Change?

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• Engaged, empowered,accountable

• Flexibility in where and how work is done

• Simple processes, up-to-date tools and systems, and reliable information

• A positive daily experience at work and with customers

• A variety of mechanisms to collaborate and communicate, and better serve customers

• What 2014 looks like for our people

Why change? Financial stability….

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• Continue to offer our customers low and stable rates

Assessing the challenge of change

How our customers experience ICBC…

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How we want to be seen by our customers

building trustdriving confidence

Insures all

Accessible

Easy hassle free service

Keeps roads safe

Industry leader at insuring & repairing

vehicles

Reasonable & competitive

prices

Trusts me Respects me

Provides peace of mind

Listens to me

Knowledgeable staff

Treats me fairly

Customer driven

FocusedRisk Savvy

Collaborative

Straight forward

Results driven

Approachable

Caring

Warm

Human

Accountability

Caring

Dedication to Customer

Integrity

Convenient

Reliable

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What matters most to customers

building trustdriving confidence

Insures all

Accessible

Easy hassle free service

Keeps roads safe

Industry leader at insuring & repairing

vehicles

Reasonable & competitive

prices

Trusts me Respects me

Provides peace of mind

Listens to me

Knowledgeable staff

Treats me fairly

Customer driven

FocusedRisk Savvy

Collaborative

Straight forward

Results driven

Approachable

Caring

Warm

Human

Accountability

Caring

Dedication to Customer

Integrity

Convenient

Reliable

2014 Customer Goals

• Gaining customer positive perception of us is a major challenge and a long-term stretch goal

• Requires us to proactively manage pricing, customer experience and the customer relationship

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2014 Goals TargetCurrent

4/10 7/10

57 75

Improve Customer Perception

Improve Customer Experience

What do our customers think of ICBC?

Customer Experience: • A measure of how customers perceive ICBC after an interaction• The average of positive responses to multiple survey questions; administered

throughout the year at key customer touch points • Includes service satisfaction and how they feel about their experience (attributes)• Tends to be a more stable measure

Source: 2009 & 2010 ICBC Customer Insight & Customer Research

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Corporate customer experience score trends

How willing are our customers to speak positively about ICBC?

Source: 2009 & 2010 ICBC Customer Insight & Customer Research

Customer Advocacy: • A measure of customers’ willingness to speak positively about ICBC • Average of positive responses to a single question; administered throughout the year

at key customer touch points• “How likely would you be to speak positively about ICBC to your friends and family [as

a result of this experience]?• Influenced by customers’ experience with ICBC and what they read and hear from

others, therefore subject to some fluctuation

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Word of mouth makes a difference

Positive comments

Negative Comments

Base: Total Sample Source: J.D. Power and Associates 2008 Canadian Home and Auto Insurance Satisfaction Study

Positive/Negative Advocacy – based on experience

2.7

5.9

1.00.3

-11.7

-1.1

-0.2-0.1

Delighted (10) Pleased (7-9) Indifferent (5-6) Dissatisfied (1-4)

2014 Strategy

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Customer Relationship

Projects in the Customer Relationship portfolio will deliver the tools, process and capabilities required to enhance the way we interact with, and develop relationships with customers.

Projects in this portfolio complement the work in Pricing and Claims to improve customer experience.

Key projects include: Customer Information File (CIF) and Customer Connection Strategy (CCS).

Transformation Program: Enabling Strategy 2014 Transformation Program: Enabling Strategy 2014

Pricing

Projects in the Pricing portfolio are intended to improve our customers’ perception of value for dollar.

The Pricing projects will maintain our historical mandate to provide basic auto insurance to all; and ensure that our rates remain stable.

Key projects include: Driving Record Model (DRM), New Rating Underwriting Engine (NRUE) and Insurance Sales & Administration System (ISAS).

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Common Enablers

The Common Enablers portfolio is building the capability within ICBC to deliver Transformation Program.

These projects provide the supporting technology to support customer, employee and partner access to systems and information necessary to deliver programs that will improve the customer and employee experience, and maintain financial stability.

Key projects: Employee Portal Foundation (EPF), Microfiche Replacement.

Claims

The Claims projects will help us deliver services in ways that are easier, and more flexible and transparent to customers.

We will replace our aging systems with modern, efficient work tools, and streamline and simplify our business processes to support and enhance our employee and customer experience.

Key project: Claims Management System Solution (CMSS).

Transformation Program: Key Projects Transformation Program: Key Projects

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Other ProjectsOther Projects

Customer Experience Learning (CEL) & Measurement Customer-facing staff (in delivery) Brokers (in development) Internal-facing staff (in development)

Customer Recognition

Stakeholder Engagement Strategy

What’s Next in the Series

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July 19

August 19• Detailed overview of Customer

Relationship projects outside of the Transformation Program:

• Customer Experience Learning• Customer Recognition • Stakeholder Engagement Strategy

• Detailed overview of key Customer Relationship Projects

• Includes: Customer Information File, Customer Connection Strategy, Customer Segmentation

What’s Next in the Series

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September 28

October 18

• Detailed overview Claims portfolio projects , including Claims Management System Solution

• Detailed overview of Pricing portfolio projects, including Driving Record Model

November 16

• Detailed overview of Common Enablers portfolio projects, including Employee Portal