Strategy 2014 & Strategic Enablers

1. Strategy 2014 & Strategic Enablers July 12, 2010

2. 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

3. March 17, 2010 Meeting 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

4. 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

5. 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

6. 2014 Strategy

7. Key Objectives Maintain financial stability

8. Do we really need to change? • Low employee turnover • Strong customer satisfaction scores • Brokers are happy • Healthy financials

9. Why change? For our customers… • 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

10. Why Change? • What the future looks like for our customers • Convenience and choice; 24x7 access and support • Ubiquitous, secure, reliable, services, and fair pricing aligned to driver risk • Customer-driven interactions • Better understanding of price/value proposition • Custom products, approaches and communications channels

11. Why change? For our people… • 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

12. Why Change? • What 2014 looks like for our people • Engaged, • empowered, • accountable • Simple processes, up-to-date tools and systems, and reliable information • A variety of mechanisms to collaborate and communicate, and better serve customers • Flexibility in where and how work is done • A positive daily experience at work and with customers

13. Why change? Financial stability…. • Continue to offer our customers low and stable rates

14. Assessing the challenge of changeHow our customers experience ICBC…

15. How we want to be seen by our customers What ICBC does for me Easy hassle free service Keeps roads safe Convenient Industry leader at insuring & repairing vehicles Customer driven Accessible Reasonable & competitive prices Results driven Characteristics Symbols building trust driving confidence Focused Risk Savvy Insures all Knowledgeable staff Collaborative Straight forward Accountability Approachable Listens to me Reliable Caring Caring Integrity Warm Values Human Dedication to Customer Personality Provides peace of mind Treats me fairly Trusts me Respects me How ICBC makes me feel

16. What matters most to customers What ICBC does for me Easy hassle free service Keeps roads safe Convenient Industry leader at insuring & repairing vehicles Customer driven Accessible Reasonable & competitive prices Results driven Characteristics Symbols building trust driving confidence Focused Risk Savvy Insures all Knowledgeable staff Collaborative Straight forward Accountability Approachable Listens to me Reliable Caring Caring Integrity Warm Values Human Dedication to Customer Personality Provides peace of mind Treats me fairly Trusts me Respects me How ICBC makes me feel

17. 2014 Customer Goals 2014 Goals Current Target Improve Customer Perception 4/10 7/10 Improve Customer Experience 57 75 16 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

18. 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 What do our customers think of ICBC? Source: 2009 & 2010 ICBC Customer Insight & Customer Research

19. Corporate customer experience score trends

20. How willing are our customers to speak positively about ICBC? • 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 Source: 2009 & 2010 ICBC Customer Insight & Customer Research

21. Word of mouth makes a difference Positive/Negative Advocacy – based on experience 5.9 Positive comments 2.7 1.0 0.3 -0.1 -0.2 -1.1 Negative Comments -11.7 Delighted (10) Pleased (7-9) Indifferent (5-6) Dissatisfied (1-4) Base: Total Sample Source: J.D. Power and Associates 2008 Canadian Home and Auto Insurance Satisfaction Study

22. 2014 Strategy

23. Transformation Program: Enabling Strategy 2014

24. Transformation Program: Key Projects

25. Other Projects

26. What’s Next in the Series July 19 • Detailed overview of key Customer Relationship Projects • Includes: Customer Information File, Customer Connection Strategy, Customer Segmentation August 19 • Detailed overview of Customer Relationship projects outside of the Transformation Program: • Customer Experience Learning • Customer Recognition • Stakeholder Engagement Strategy

27. What’s Next in the Series September 28 • Detailed overview of Pricing portfolio projects, including Driving Record Model October 18 • Detailed overview Claims portfolio projects , including Claims Management System Solution November 16 • Detailed overview of Common Enablers portfolio projects, including Employee Portal