October 18, 2010

1. COPE Update The Claims JourneySupporting 2014 StrategyBrian Jarvis, VP, Claims TransformationAlexis Doran, Director, Claims Transformation October 18, 2010

2. Today’s Agenda • Review ground rules for series • Review today’s objectives • Strategy 2014 and the customer experience • Case for change • Claims portfolio – shaping our future vision • Ensuring success • Questions

3. Ground Rules • Forum is not part of the collective bargaining or s. 54 process – it informs context for forthcoming negotiations • We ask that you exercise patience as we share our plans • 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 • We are committed to sharing information with the Union as soon as decisions are made

4. Today’s Meeting Objectives In today’s session we will cover the following: • Share how we’re learning from our customers and employees, including best practices, and how we’ll continue to gather and use these insights on our journey to 2014 • Enhance your understanding of the long term plan for the Claims portfolio within our Transformation Program, and some of the projects currently underway to deliver a better customer and employee experience

5. 2014 Strategy

6. 2014 Goals Current Target Improve Customer Perception 4/10 7/10 Improve Customer Experience 57 75 Customer Targets for 2014

7. How will we get there? Our approach to building the customer experience: • Understanding our customers – which aspects of our service customers like /don’t like, and what needs & wants they have that currently aren’t being met • Enabling our employees and business to deliver – based on customer insights, enabling our employees and business to consistently deliver what customers expect

8. Understanding customers’ attitudes and perceptions of ICBC • Understand “moment of truth” pain points • Continuously measure Customer Experience to track progress • Customer Experience priorities with greatest impact on BBQ score

9. What is stopping us today? • Our processes and policies do not support our employees • Employees don’t have the right tools and information • Current systems are not designed around the customer interaction • Current systems require repetitive entry of data making it difficult for our employees to deliver the ideal customer experience

10. How will we get there? We need to provide our employees with: • Better, single-source information that helps them be more efficient • Streamlined processes that enable them to deliver an excellent customer experience • Systems that allow employees to spend time on what matters to the customer • Better training for employees to help them meet the needs of customers

11. First Steps • Defining Current Claims Processes • Involved 180 Subject Matter Experts (SMEs) from across the Claims division to understand how things really work in different parts of Claims • Validated results with Claims employees • Industry Best Practices • Researched & evaluated industry-leading practices • Extracted lessons learned from other organizations • Customer Focus Groups • Tounderstand our customers’ expectations and what they value in their Claims experience

12. Defining Current Claims Processes • SME team reviewed more than 3,000 issues & opportunities identified • Identified ways to simplify and improve processes, including specific technology needs/capabilities, i.e. business requirements • Validated by external advisor with experience in Claims transformations

13. Industry Best Practices ICBC Industry Leaders Multi-Channel Reporting Options Call Centre Reporting Self Serve Claim Status Adjuster Assistance Required For Claim Status Paper Cheques Direct Deposit of Funds In Person Claim Centre Appointments End-to-End Self Serve Money-back Service Satisfaction Guarantee No Published Service Commitments 75% In House Estimating Direct Repair Expense Reimbursement Pre-paid Debit Cards Microfiche Electronic Document Management

14. “They need to treat you with respect. Treat you like a human being.” “I want no assumption of guilt. You always feel like you have to defend yourself.” “You should have all expenses paid. You shouldn't have to pay out-of-pocket” ”For simple claims, why can’t we report online?” “I want a human response. It felt like the person was filling out a questionnaire. There was no emotion, no empathy.” “Why can’t I look up information on your web site that tells me exactly what I can expect from you when I have an accident.” Customer Focus Groups Respect Me Trust Me Meet my Needs Provide me “Hassle Free” Service Transparency Empathize with Me

15. Our Case for Change • Customer • Customers expect more • Not seen as delivering “hassle-free” service • Current processes are not customer-oriented • Competitors challenging us on price & service • We need to increase BBQ Score – 5/10 unacceptable! • Need to focus on the overall Customer Experience

16. Our Case for Change • Employee • Low employee engagement • Poor work tools – e.g. outdated & inefficient technology & processes • Improve change management practices • Limited career path & prof. development opportunities • Projected retirements expected to create skills shortages • Customer • Customers expect more • Not seen as delivering “hassle-free” service • Current processes are not customer-oriented • Competitors challenging us on price & service • We need to increase BBQ Score – 5/10 unacceptable! • Need to focus on the overall Customer Experience

17. Our Case for Change

18. Our Vision for the Future Customer Experience Deliver our claims services in a way that’s easy, flexible and transparent for customers and partners: Enhance customer choice in service delivery options Enable self-serve capabilities for customers and preferred partners Commit to a Claims service promise Improve existing partner relationships & expand to new relationships to provide seamless service delivery

19. Our Vision for the Future Employee Experience Improve our employees’ experience, while enhancing their ability to serve customers: Modern, efficient work tools, including an integrated, paperless Claims Management System Streamlined and simplified business processes Remove repetitive work to give employees more time to provide quality service to the customer Skill-based assignment of work A single source of information Development and training programs, enhanced career opportunities

20. Our Vision for the Future Financial Stability Control loss/expense costs and maintain financial strength: Electronic files and streamlined business processes will reduce inefficiencies and costs Modern systems with predictive analytics and access to “good” data enable more effective decision making Improved ability to meet customer needs reduces potential litigation costs Partnership agreements to help realize efficiencies and cost-saving opportunities

21. What This Means … Today In the Future Customers have greater opportunity to report online Employees & customers save time! They use self-service & check status of their claim online Customer options: commercial vs. personal; faster process for “low-risk” claims Files assigned by matching risk/complexity of file to skills of employees Expand Express Repair & increase estimator reviews/audits Electronic Paperless file means anyone, at any location can help customer or assist employee with file resolution Employee can stay as single point of contact for customer even if they change locations Flexible training and development opportunities and options • 98% of customers come in one way to report claims – via phone • 90% of customer calls today are for routine inquiries - deductible waived? Claim status? Car towed? • Same claims-handling process for all customers • Files primarily assigned by geography • 75% in-house estimating • Paper-based file means we have to work file in location of customer • Files regularly transferred for different reasons • Inflexible training opportunities

22. Claims Portfolio • What is it? • A set of Claims projects and initiatives under the Transformation Program umbrella to: • Help our employees consistently deliver an exceptional claims experience to our customers (People) • Improve ICBC’s claims handling (Process) • Replace our aging business systems (Technology) • Key Elements: • Creating a more “hassle-free” customer experience • Removing complex & inconsistent policies and processes • Streamlining and simplifying inefficient business processes • Providing a fully integrated Claims Management System • Anticipated Timeline: Now to 2014

23. Realizing Our Vision: Foundational Work in 2010 • SystemSelect & introduce an integrated Claims Management System Solution (CMSS) adopting ICBC’s Technology Alignment Strategy • People & Processes Develop an enhanced claims business which will support achieving ICBC’s 2014 vision • Data ManagementIdentify & recommend processes and systems that allow for the handling, capture and storage of paper and other electronic or digital media

24. Shaping our future: The System • End goal: • Deliver an end-to-end integrated claims management solution and processes to improve the customer and employee experience • Currently: • Selected a lead vendor • Contract negotiations • “Fit Gap” • Q3 2012 implementation begins

25. 2010 2011 2012 Q1 / Q2 Q3/ Q4 Q1 / Q2 Q3 / Q4 Q1 / Q2 Q3/ Q4 Jan Mar Jun July Mar Jun Sept Dec Jan July Sept Dec Jul Aug Sep Oct Mar Jun Sept Dec Jan July Nov Dec System Procurement –Project Deliverables & Expected Timeline EOI Implementation Planning System Transition Strategy Execute Go Live

26. Shaping our future:People & Process • Segmentation of claims based on risk • Skill based claim assignment • Workload balancing • Real time claim handling to maximize once and done • Involved all areas of the company – not just claims - to ensure an holistic approach

27. Shaping our future: Data Management Document Content Management • Inventory of critical claims requirements to enable the electronic file • Corporate interest in our data/information • Conversion strategy

28. Ensuring our Success • Significant change for any company - we want to get it right! • Claims is moving in concert with other areas, so that we are moving together towards strategy 2014 • Established TP Governance • Strong project management to help the business follow sound change management principles • Working with risk advisor that takes a 3rd-party perspective • Hired a business advisor with lots of experience and industry knowledge in transformational change • Hiring a Systems Integrator to help us with implementation of multiple systems

29. What’s Next We’ll provide more information once decisions have been made.

30. Revisit Today’s Meeting Objectives In today’s session we covered the following: • Share how we’re learning from our customers and employees, including best practices, and how we’ll continue to gather and use these insights on our journey to 2014 • Enhance your understanding of the long term plan for the Claims portfolio within our Transformation Program, and some of the projects currently underway to deliver a better customer and employee experience

31. Questions?