ICBC Shake Up After BC Government Releases Report On ICBC

ICBC is in a state of flux after the Government’s recent review of ICBC’s operations.

ICBC CEO Schubert is “stepping down” in November.

This has been quoted as a “mutual decision” between government and Mr. Schubert.

The ICBC review report is available at:

ICBC’s response to the review is available at:

The review makes 24 recommendations, which are summarized at the end of this article.


Minister of Finance Kevin Falcon –
"ICBC has provided good value for its customers over the last 10 years and kept premium increases low, but our government expects ICBC will make every effort to keep costs to a minimum. That is why ICBC has been directed to bring compensation more in line with the public sector and develop clear measures for cost containment."

Paul Taylor, board chair, ICBC –
"While the report concluded that ICBC has worked hard to keep rates as low as possible and managed investments well, there are some important areas for improvement. ICBC employees deliver excellent service to B.C. drivers, and I know they’re committed to ensuring ICBC makes the improvements needed."

Quick Facts:

  • For the past 10 years, ICBC has kept overall rate increases to an annual average of 0.8 per cent, with basic insurance increasing 1.6 per cent and optional insurance decreasing 0.3 per cent.
  • In December 2011, higher claims costs and declining investment income led ICBC to request an 11.2 per cent basic insurance rate increase. ICBC also reduced optional insurance rates by 6 per cent.
  • ICBC is one of Canada’s largest property and casualty insurers, with over 5,000 employees and premiums revenue of $3.7 billion, plus $440 million in investment income.
  • ICBC provides driver licensing, vehicle registration and violation ticket administration on behalf of government.
  • A network of over 900 independent brokers offer basic and optional insurance from ICBC, as well as optional insurance from other companies.

Learn More:

BACKGROUNDER ( from BC Government press release)

Recommendations and implementation status

ICBC has accepted all 24 recommendations made in the review report. Five have been fully implemented, eight are partially implemented, and implementation of the remaining 11 is underway.

  1. ICBC and the Province of British Columbia should develop a closer and more consistent relationship to improve oversight of ICBC and ensure alignment of priorities (started).
  2. ICBC’s Board should develop clear expectations on cost containment (started).
  3. ICBC should develop and implement an overall strategy to more effectively manage bodily injury claims (started).
  4. ICBC should review the utilization of internal and external legal resources to maximize cost effectiveness (started).
  5. ICBC should reduce total management and professional staffing to a level more consistent with 2008 (started).
  6. ICBC should develop action plans, with timelines, for maximizing span of control and reducing management layers across the organization (started).
  7. ICBC should reduce total management and professional compensation to a level more consistent with 2008 (started).
  8. ICBC should bring their compensation framework more in line with the greater public sector and ensure more consistent compliance with policies (started).
  9. ICBC should regularly conduct detailed reviews of the budget to ensure costs are contained and aligned with the Province of British Columbia’s priorities (started).
  10. ICBC should strengthen their oversight of the corporation’s expenses to instil a culture of cost containment and financial discipline (started).
  11. ICBC should more clearly demonstrate value for money in procurement, using competitive processes whenever possible (completed).
  12. ICBC should develop relevant key performance indicators to ensure it can appropriately monitor its procurement process and performance (completed).
  13. ICBC should strengthen the procurement process through the implementation of a vendor complaint and dispute resolution mechanism, and a post-contract evaluation process (completed).
  14. ICBC should amend their records retention policy to prevent the destruction of documentation for ongoing contracts (completed).
  15. ICBC should ensure that IT policy and procedures are appropriately documented (partially completed).
  16. ICBC should ensure that new disaster recovery plans are developed and tested before the new Transformation Program systems are implemented (partially completed).
  17. ICBC should ensure the IT security function has the appropriate reporting relationship and authority in the organization (started).
  18. ICBC should prioritize and implement the remaining security initiatives stated in the Technology Alignment Strategy, given the significant risk and impact to the Transformation Program and the new IT environment (partially completed).
  19. ICBC should provide interim progress reports to the Province of British Columbia on the costs, scope, benefits, and schedule of each Transformation Program phase, along with any variance explanation (partially completed).
  20. ICBC should formally involve the Province of British Columbia with significant IT projects to leverage public sector experience and lessons learned from other large scale initiatives (partially completed).
  21. ICBC should ensure that key areas identified in the Transformation Program risk assessments are promptly addressed (completed).
  22. ICBC should quantify the additional financial benefits to be realized from the Transformation Program (partially completed).
  23. ICBC should ensure that comprehensive audits of the Driver Licensing systems are performed regularly, given the sensitivity of the information within the Driver Licensing systems (partially completed).
  24. ICBC should place a higher priority on replacing the legacy Driver Licensing systems (partially completed).

Paul Mitchell, Q.C. has extensive experience with serious injury and ICBC claims. He acts for the injured all over BC, and will not act for ICBC or any other insurance company.

For more information on ICBC claims and serious injuries, or for a confidential discussion of your claim, contact Paul Mitchell, Q.C. at 250-869-1115 (direct line), or send him a confidential email at [email protected]

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