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Volume II of II - Table of Contents by mmcsx

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									                                             ICBC March 16, 2007 Filing with the BC Utilities Commission

                                     Volume II of II - Table of Contents
                                                                                   ICBC 2007 REVENUE REQUIREMENTS
                                                                                                                                   B-1-2
                                          EXHIBIT
CHAPTER 7.1 OPERATING EXPENSES: INTRODUCTION

 A Introduction .....................................................................................................................7.1-1
   A.1 Strategic and Business Planning ..............................................................................7.1-1
   A.2 Planning Process in Support of This Filing ...............................................................7.1-3

 B Financial Management and Accountability ..................................................................7.1-4
   B.1 Corporate Financial Accountability ...........................................................................7.1-4
   B.2 Management .............................................................................................................7.1-5

 C Summary of Operating Expenses..................................................................................7.1-6
   C.1 Major Forecast Variances in 2006 Operating Expenses...........................................7.1-7
   C.2 Major Changes in 2007 Forecast Operating Expenses ............................................7.1-8

CHAPTER 7.2 OPERATIONS

 A Operations Division ........................................................................................................7.2-1
   A.1 Overview ...................................................................................................................7.2-1
   A.2 Divisional Operating Expenses .................................................................................7.2-2
   A.3 Drivers of Divisional Operating Expense ..................................................................7.2-3

 B Business Categories Within Operations Division........................................................7.2-7
   B.1 Loss Management ....................................................................................................7.2-7
   B.2 Driver Licensing ........................................................................................................7.2-9
   B.3 Call Centres ............................................................................................................7.2-11
   B.4 Regional Claims Operations ...................................................................................7.2-13
   B.5 Specialized Claims .................................................................................................7.2-15
   B.6 Business Support....................................................................................................7.2-19

 C Conclusion.....................................................................................................................7.2-21

 Addendum ...........................................................................................................................7.2-22

CHAPTER 7.3 INSURANCE, MARKETING AND UNDERWRITING

 A Insurance, Marketing and Underwriting Division Overview........................................7.3-1
   A.1 New Divisional Structure...........................................................................................7.3-2
   A.2 Rate Design ..............................................................................................................7.3-3

 B Divisional Operating Expenses .....................................................................................7.3-3

 C Insurance, Marketing and Underwriting Business Areas............................................7.3-5
   C.1 Underwriting..............................................................................................................7.3-5
   C.2 Broker Relations and Sales ......................................................................................7.3-8
   C.3 Regulatory, Insurance Planning and Business Support............................................7.3-9
   C.4 Strategic Marketing .................................................................................................7.3-10

 D Conclusion.....................................................................................................................7.3-12

 Insurance Corporation of British Columbia                                                                                         TOC-i
 March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission

 Appendix 7.3 A – Distribution Costs.................................................................................. 7.3 A

 Appendix 7.3 B – Basic Insurance Information Sharing Exhibits ................................... 7.3 B

CHAPTER 7.4 FINANCE

 A Finance Division Overview.............................................................................................7.4-1

 B Finance Division Operating Expenses..........................................................................7.4-2

 C Divisional Operating Expenses by Business Area ......................................................7.4-4
   C.1 Finance and Accounting Business Area ...................................................................7.4-5
   C.2 Collections Business Area ........................................................................................7.4-9
   C.3 Supply Management and Corporate Services Business Area ................................7.4-10

 D Conclusion.....................................................................................................................7.4-12

 Appendix 7.4 A – Premium Tax Exemption ....................................................................... 7.4 A

 Appendix 7.4 B – Capitalization Accounting Policy ......................................................... 7.4 B

CHAPTER 7.5 HUMAN RESOURCES AND CORPORATE LAW

 A Human Resources and Corporate Law Overview ........................................................7.5-1
   A.1 Human Resources Reorganization ...........................................................................7.5-2

 B Human Resources and Corporate Law Operating Expenses .....................................7.5-3

 C Human Resources and Corporate Law Business Functions......................................7.5-5
   C.1 Human Resources ....................................................................................................7.5-6
   C.2 Corporate Law ..........................................................................................................7.5-9

CHAPTER 7.6 INFORMATION SERVICES DIVISION

 A Information Services Division Overview.......................................................................7.6-1
   A.1 Technology Management at ICBC............................................................................7.6-2

 B Information Services Division Operating Expenses....................................................7.6-6
   B.1 Divisional Financial Summary...................................................................................7.6-6
   B.2 Cost Drivers ..............................................................................................................7.6-7
   B.3 Future Spending Trends .........................................................................................7.6-11

 C Information Services Division Business Areas..........................................................7.6-12
   C.1 IS Planning, Architecture and Administration..........................................................7.6-12
   C.2 IS Solutions.............................................................................................................7.6-13
   C.3 IT Infrastructure ......................................................................................................7.6-15

 D Conclusion.....................................................................................................................7.6-17

 Appendix 7.6 A - IT Strategic Plan..................................................................................... 7.6 A



 Insurance Corporation of British Columbia                                                                                      TOC-ii
 March 16, 2007
                                             ICBC March 16, 2007 Filing with the BC Utilities Commission

 Appendix 7.6 B - IT Capital Plan ........................................................................................ 7.6 B

 Appendix 7.6 C - IT Benchmarking Plan ........................................................................... 7.6 C

CHAPTER 7.7 CORPORATE COSTS

 A Introduction .....................................................................................................................7.7-1

 B Pension Plan and Post-Retirement Benefits Expense ................................................7.7-2

 C General Corporate Costs................................................................................................7.7-8
   C.1 Corporate Regulatory Costs .....................................................................................7.7-9
   C.2 Corporate Obligations .............................................................................................7.7-10
   C.3 Bad Debt Expense and Recoveries ........................................................................7.7-11

 D Compliance Payments..................................................................................................7.7-12

 E Corporate Projects........................................................................................................7.7-13

 F    Service Fees ..................................................................................................................7.7-17

 G Conclusion.....................................................................................................................7.7-18

CHAPTER 7.8 BASIC INSURANCE PORTION OF OPERATING EXPENSES

 A Introduction .....................................................................................................................7.8-1

 B Divisional and Financial Statement Views....................................................................7.8-1

 C Basic Insurance Operating Expenses...........................................................................7.8-4

 D Introduction to Appendices ...........................................................................................7.8-7

 Appendix 1 A - Allocator Description .................................................................................7.8-8

 Appendix 1 B - 2006 Approved Allocators Using 2005 Actual Cost Detail...................7.8-10

CHAPTER 8             PERFORMANCE MEASURES

 A Performance Measures Overview.....................................................................................8-1
   A.1 ICBC’S Performance Measures...................................................................................8-2

 B Performance Statistics ......................................................................................................8-3
   B.1 Service Measures ........................................................................................................8-3
   B.2 Insurance Services Satisfaction...................................................................................8-3
   B.3 Driver Services Satisfaction .........................................................................................8-4
   B.4 Claims Services Satisfaction (BCUC) ..........................................................................8-5
   B.5 New Claims Initiation ...................................................................................................8-7
   B.6 Customer Contact Service Level .................................................................................8-9
   B.7 Customer Approval Index ............................................................................................8-9
   B.8 Legal Representation Rate ........................................................................................8-10


 Insurance Corporation of British Columbia                                                                                        TOC-iii
 March 16, 2007
                                             ICBC March 16, 2007 Filing with the BC Utilities Commission

      B.9 Complaints Heard by the Fairness Commissioner.....................................................8-10

 C Financial Measures ..........................................................................................................8-11
   C.1 Basic Loss Ratio ........................................................................................................8-11
   C.2 Basic Insurance Expense Ratio .................................................................................8-12
   C.3 Basic Non-insurance Expense Ratio .........................................................................8-13
   C.4 Investment Return .....................................................................................................8-14
   C.5 Injury Paid Severity ....................................................................................................8-15

 D Efficiency Measures.........................................................................................................8-18
   D.1 Cost Per Policy in Force ............................................................................................8-18
   D.2 Claims Efficiency Ratio ..............................................................................................8-19

 E Directional Indicators ......................................................................................................8-20

 Appendix 8 A – Performance Statistics ................................................................................ 8 A

 Appendix 8 B – Legal Representation Action Plan.............................................................. 8 B

CHAPTER 9             FINANCIAL ALLOCATION

 A Introduction ........................................................................................................................9-1

 B Allocation Items - Summary..............................................................................................9-1

 C Allocation Items - Details ..................................................................................................9-1
   C.1 Premiums Written Allocator .........................................................................................9-1
   C.2 Salvage Allocator .........................................................................................................9-3
   C.3 Marketing and Broker Services....................................................................................9-5
   C.4 Customer Accounting ..................................................................................................9-6
   C.5 Reinsurance.................................................................................................................9-7
   C.6 Reorganizations ...........................................................................................................9-8

CHAPTER 10            ROAD SAFETY

 A Introduction ......................................................................................................................10-1

 B Enforcement .....................................................................................................................10-1

 C Engineering ......................................................................................................................10-2

 D Education and awareness ...............................................................................................10-3

 E Additional Road Safety Program Information ............................................................... 10 4

 Appendix 10 A – Traffic and Road Safety Law Enforcement Funding Memorandum of
 Understanding 2005 Annual Report.................................................................................... 10 A

 Appendix 10 B – Road Improvement Program 2006 Evaluation....................................... 10 B

 Appendix 10 C - Road Safety Education and Awareness Program Review .................... 10 C


 Insurance Corporation of British Columbia                                                                                        TOC-iv
 March 16, 2007
                                        ICBC March 16, 2007 Filing with the BC Utilities Commission

 Appendix 10 D - Evaluation of the Effectiveness of Education and Awareness Programs10 D

 Appendix 10 E – Evaluation of the Effectiveness of Road Safety Programs ...................10 E

CHAPTER 11 – General Appendices

 Appendix 11 A – 2005 Annual Report ................................................................................. 11 A

 Appendix 11 B – Service Plan 2007 - 2009 ......................................................................... 11 B

 Appendix 11 C – Service Agreement .................................................................................. 11 C




 Insurance Corporation of British Columbia                                                                        TOC-v
 March 16, 2007
                                              ICBC March 16, 2007 Filing with the BC Utilities Commission

                                       Volume II of II - Table of Figures


CHAPTER 7.1 OPERATING EXPENSES: INTRODUCTION

 Figure 7.1.1 - Organizational Chart.........................................................................................7.1-6
 Figure 7.1.2 - ICBC’s Operating Expenses.............................................................................7.1-7

CHAPTER 7.2 OPERATIONS

 Figure 7.2.1 – Operations Division Diagram ....................................................................... 7.2-1
 Figure 7.2.2 – Divisional Operating Expenses and FTEs ................................................... 7.2-2
 Figure 7.2.3 – Loss Management Operating Expenses and FTEs ..................................... 7.2-8
 Figure 7.2.4 – Driver Licensing Operating Expenses and FTEs ......................................... 7.2-10
 Figure 7.2.5 – Call Centres Operating Expenses and FTEs ............................................... 7.2-12
 Figure 7.2.6 – Regional Claims Operations Operating Expenses and FTEs ...................... 7.2-14
 Figure 7.2.7 – Specialized Claims Operating Expenses and FTEs .................................... 7.2-18
 Figure 7.2.8 – Business Support Operating Expenses and FTEs ...................................... 7.2-20

CHAPTER 7.3 INSURANCE, MARKETING AND UNDERWRITING

 Figure 7.3.1 - Insurance, Marketing and Underwriting Operating Expenses and FTEs..........7.3-4
 Figure 7.3.2 - Underwriting Operating Expenses and FTEs ...................................................7.3-7
 Figure 7.3.3 - Broker Relations and Sales Operating Expenses and FTEs ............................7.3-8
 Figure 7.3.4 - Regulatory, Insurance Planning and Business Support Services Operating
     Expenses and FTEs .......................................................................................................7.3-10
 Figure 7.3.5 - Strategic Marketing Operating Expenses and FTEs.......................................7.3-11

CHAPTER 7.4 FINANCE

 Figure 7.4.1 - Finance Division Operating Expenses and FTEs .............................................7.4-2
 Figure 7.4.2 - Departments Mapped to Business Areas .........................................................7.4-4
 Figure 7.4.3 - Finance and Accounting Business Area Operating Expenses and FTEs.........7.4-8
 Figure 7.4.4 - Collections Business Area Operating Expenses and FTEs..............................7.4-9
 Figure 7.4.5 - Supply Management and Corporate Services Business Area Operating Expenses
     and FTEs ........................................................................................................................7.4-11

CHAPTER 7.5 HUMAN RESOURCES AND CORPORATE LAW

 Figure 7.5.1 – Human Resources and Corporate Law Operating Expense and FTEs ...........7.5-4
 Figure 7.5.2 – Human Resources Operating Expenses and FTEs .........................................7.5-8
 Figure 7.5.3 - Corporate Law Operating Expenses and FTEs ..............................................7.5-10

CHAPTER 7.6 INFORMATION SERVICES DIVISION

 Figure 7.6.1 IT Governance Model ........................................................................................7.6-4
 Figure 7.6.2 ISD Operating Expenses and FTEs...................................................................7.6-8
 Figure 7.6.3 IS Planning, Architecture and Administration Operating Expenses and FTEs 7.6-13
 Figure 7.6.4 IS Solutions Operating Expenses and FTEs ...................................................7.6-14
 Figure 7.6.5 IT Infrastructure Operating Expenses and FTEs ..............................................7.6-16

 Insurance Corporation of British Columbia                                                                                          TOF-i
 March 16, 2007
                                           ICBC March 16, 2007 Filing with the BC Utilities Commission

CHAPTER 7.7 CORPORATE COSTS

 Figure 7.7.1 – Corporate Costs ..............................................................................................7.7-1
 Figure 7.7.2 – Pension Plan and Post-Retirement Benefits Expense.....................................7.7-5
 Figure 7.7.3 – Effect on Pension Plan Expense .....................................................................7.7-5
 Figure 7.7.4 – Effect on Post-Retirement Benefits Expense...................................................7.7-7
 Figure 7.7.5 – Pension and Post-Retirement Benefits Allocation ...........................................7.7-8
 Figure 7.7.6 – General Corporate Costs.................................................................................7.7-9
 Figure 7.7.7 – Corporate Projects.........................................................................................7.7-13
 Figure 7.7.8 – 2007 Proposed Projects ................................................................................7.7-16

CHAPTER 7.8 BASIC INSURANCE PORTION OF OPERATING EXPENSES

 Figure 7.8.1 - Corporate Total - 2007 Forecast Operating Expense Summary by Division and
     Financial Statement View .................................................................................................7.8-3
 Figure 7.8.2 - Basic Insurance Portion of 2007 Forecast Operating Expense .......................7.8-4
 Figure 7.8.3 - 2007 Forecast Basic Insurance Percentage....................................................7.8-5
 Figure 7.8.4 - 2004 Actual, 2005 Actual, 2006 Actual and 2007 Forecast Basic Insurance
     Allocation Percentages.....................................................................................................7.8-6

CHAPTER 8            PERFORMANCE MEASURES

 Figure 8.1 - Performance Statistics – Insurance Services Satisfaction......................................8-3
 Figure 8.2 - Performance Statistics – Driver Services Satisfaction............................................8-5
 Figure 8.3 - Performance Statistics – Claims Services Satisfaction (BCUC).............................8-6
 Figure 8.4 - Survey Results – Claims Services Satisfaction (BCUC) ........................................8-6
 Figure 8.5 - Survey Results – Accident Benefit Only (BCUC) Satisfaction ................................8-7
 Figure 8.6 - Performance Statistics – New Claims Initiation ......................................................8-8
 Figure 8.7 - Performance Statistics – Customer Contact Service Level Satisfaction.................8-9
 Figure 8.8 - Performance Statistics – Customer Approval Index .............................................8-10
 Figure 8.9 - Performance Statistics – Legal Representation Rate ...........................................8-10
 Figure 8.10 - Performance Statistics – Complaints Heard by the Fairness Commissioner .....8-11
 Figure 8.11 - Performance Statistics – Basic Loss Ratio.........................................................8-11
 Figure 8.12 - Performance Statistics – Basic Insurance Expense Ratios ................................8-13
 Figure 8.13 - Performance Statistics – Basic Non-Insurance Expense Ratio ..........................8-14
 Figure 8.14 - Performance Statistics – Investment Return ......................................................8-15
 Figure 8.15 - Performance Statistics – Bodily Injury Paid Severity ..........................................8-16
 Figure 8.16 - Performance Statistics – Accident Benefit Paid Severity ...................................8-17
 Figure 8.17 - Performance Statistics – Cost Per Policy in Force .............................................8-18
 Figure 8.18 - Performance Statistics – Claims Efficiency Ratio ...............................................8-20
 Figure 8.19 - Performance Statistics – Directional Indicators ..................................................8-21

CHAPTER 9            FINANCIAL ALLOCATION

 Figure 9.1 - Summary of Premiums Written Allocator................................................................9-3




 Insurance Corporation of British Columbia                                                                                   TOF-ii
 March 16, 2007
                                    CHAPTER 7.1

                   OPERATING EXPENSES:
                      INTRODUCTION




Insurance Corporation of British Columbia
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission




                                            Table of Contents
A Introduction .....................................................................................................................7.1-1
     A.1 Strategic and Business Planning ..............................................................................7.1-1
     A.2 Planning Process in Support of This Filing ...............................................................7.1-3

B Financial Management and Accountability ..................................................................7.1-4
     B.1 Corporate Financial Accountability ...........................................................................7.1-4
     B.2 Management .............................................................................................................7.1-5

C Summary of Operating Expenses..................................................................................7.1-6
     C.1 Major Forecast Variances in 2006 Operating Expenses...........................................7.1-7
     C.2 Major Changes in 2007 Forecast Operating Expenses ............................................7.1-8




Insurance Corporation of British Columbia                                                                                          7.1-i
March 16, 2007
                                         ICBC March 16, 2007 Filing with the BC Utilities Commission



                                           Table of Figures
Figure 7.1.1 - Organizational Chart.........................................................................................7.1-6
Figure 7.1.2 - ICBC’s Operating Expenses.............................................................................7.1-7




Insurance Corporation of British Columbia                                                                                   7.1-ii
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A       INTRODUCTION
1.      ICBC’s governance and accountability framework is well defined. ICBC, as a Crown
corporation, operates within a legislative framework that requires planning and accountability to
government and the general public. ICBC’s Board of Directors provides strategic direction and
sets goals for corporate performance.           Through formalized processes of monitoring and
reporting, progress against these goals are reviewed throughout the year.

2.      As a Crown corporation, ICBC is subject to the Budget Transparency and Accountability
Act, which requires ICBC to prepare annually a three-year Service Plan setting out ICBC’s
corporate goals, objectives, measures of performance, and performance targets.           ICBC’s
Annual Report measures progress against each goal, and provides a discussion of results. The
2005 Annual Report and the Service Plan 2007-2009 are provided in Appendix 11A and
Appendix 11B.        The Shareholder’s Letter of Expectation between ICBC and the Minister
Responsible for ICBC sets out the respective roles and responsibilities of government and
ICBC, and establishes high-level performance expectations of ICBC over a three-year period.
In addition, ICBC operates under a Service Agreement with government for the provision of
Non-insurance services (attached as Appendix 11C).

A.1     STRATEGIC AND BUSINESS PLANNING
3.      On an annual basis, ICBC’s Board of Directors reviews and endorses the strategic
direction for ICBC following joint discussions held between the Board and Executive
management. The corporate strategic direction, once confirmed, provides the framework for
ICBC’s business planning and the budgeting process. ICBC’s three-year Service Plan, which
includes business strategies, the budget, performance measures, and targets, is then updated
and formally approved by the Board of Directors in January and released publicly in February.
An annual corporate business plan is also developed and approved by the Board in the fall of
each year for the upcoming year.

4.      In 2006 the Board and Executive management reviewed the achievements since 2002
when the vision of “being the leading insurance company in all aspects of its business,




Insurance Corporation of British Columbia                                                    7.1-1
March 16, 2007
                                       ICBC March 16, 2007 Filing with the BC Utilities Commission

operating competitively and valued by its customers”1 was adopted. The achievements to date
and the changes in the environment set the stage for a review and update of ICBC’s corporate
strategy. It was determined that no major shifts in direction were required, but a number of
elements of the strategy needed to be revised.

5.         ICBC’s vision is now to be BC’s “preferred auto insurer, providing protection and peace
of mind.”2 The four corporate goals have been modified to: Customer Focus, Financial
Responsibility, High Performing, Engaged and Capable People, and Operational Excellence.
Details of the revised corporate strategy are provided in ICBC’s Service Plan 2007-2009,
(Appendix 11B).

6.         The commitment to operate efficiently remains a priority and continues to be a focus for
ICBC as demonstrated by the inclusion of the goal for Financial Responsibility and the addition
of the Operational Excellence goal. The expense ratio continues to be a corporate performance
measure, and under the Operational Excellence goal two additional performance measures
have been added to monitor operating efficiency on a policy and driver services transaction
basis. ICBC’s solid financial foundation is attributed, in large part, to its disciplined and fiscally
prudent management environment. The revisions to the corporate strategy continue to reinforce
this commitment.

7.         A key measurement of operational efficiency within the property and casualty insurance
business is the expense ratio. This measure is calculated as the ratio of non-claims costs
(including commissions and premium taxes, but excluding claims services costs) to insurance
premium dollars earned. Corporately, ICBC’s expense ratio for 2005 of 19.5% (insurance and
Non-insurance services) compares favourably against the property and casualty insurance
industry benchmark of 28.1% for the same period.

8.         ICBC’s operating expenses are managed in a fiscally prudent manner. In 2005, the
expense ratio (excluding Non-insurance costs) for Basic insurance was 10.4%.              The Basic
insurance expense ratio for 2006 was 10.0%. The forecast for 2007 of 10.2% shows a slight
increase primarily due to the increase in compensation and project expenditures. In general,




1
    Service Plan 2007-2009, page 19.
2
    Service Plan 2007-2009, page 21.

Insurance Corporation of British Columbia                                                        7.1-2
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

ICBC continues to experience upward pressures on costs arising from business changes,
additional staffing primarily to support driver services and call centre operations, pricing
increases on goods and services, and expectations from suppliers for increased rates on
renewal or negotiation of contracts. Further discussion is provided in the following chapters for
each division.

A.2     PLANNING PROCESS IN SUPPORT OF THIS FILING
9.      In 2006 ICBC’s Executive reviewed and approved key planning assumptions to guide
the development of financial forecasts and the 2007 required rate level change for Basic
insurance.     These include assumptions around vehicle growth, inflation, and the impact of
ICBC’s existing road safety and claims programs on claims trends. The assumptions required
to support the actuarial determination of the 2007 rate level for Basic insurance are discussed in
Chapter 4. Wherever possible, the approved assumptions were based on independent external
sources. Selected trends for frequency and severity of claims were subsequently discussed
with the Executive as part of the review process for the determination of the required rate level
change.

10.     The determination of the required rate level change includes a forecast of operating
expenses for 2007.         In developing the forecast, ICBC continued to reinforce the need to
maintain fiscal prudence and to ensure that increases in operating expenses are aligned with
changes in the business. Only by monitoring both elements will ICBC be able to maintain the
efficiency of its operations.

11.     ICBC has adapted its planning process to meet the requirements of the regulatory
process. ICBC took the following steps at the corporate level in developing the 2007 operating
expense forecast:

        •    Reviewed the impact of potential cost increases on the corporate expense ratio in
             order to determine an appropriate 2007 target for this corporate performance
             measure.

        •    Determined corporate priorities on business change initiatives and the level of
             operating expenses anticipated for 2007.      Priority business changes were either
             necessary to support corporate strategy or were required to manage significant risks.


Insurance Corporation of British Columbia                                                     7.1-3
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

        •    Reviewed changes in the business environment, which have an impact on operating
             expenses.

        •    Examined prior year trends and 2006 year-to-date spending patterns.

        •    Divisional operating budgets include an allowance for attrition and other vacancies
             that arise during the year as part of the normal course of business. This allowance is
             based on historical experience.

        •    Executive management discussed major changes in operating expenses for each
             business area prior to the finalization of the 2007 operating expense forecast.

        •    The modified zero based budgeting analysis undertaken in 2005 provided a
             foundation for ICBC to better understand the cost drivers within its business, and
             was relied upon in developing the forecast of operating expenses for 2007. During
             2007 ICBC will begin an initiative to undertake a functional review of the Corporation
             to assess whether resources are being appropriately allocated to enable the
             Corporation to achieve its performance targets and to implement required business
             changes. This review will aid in the development of the 2008 forecast of operating
             expenses.


B       FINANCIAL MANAGEMENT AND ACCOUNTABILITY
B.1     CORPORATE FINANCIAL ACCOUNTABILITY
12.     At a corporate level, ICBC is subject to financial examination through processes
established by the Ministry of Finance.         These include the requirement for monthly and/or
quarterly reporting of financial results, capital expenditures, and updates to financial forecasts.
As part of the government budget review process, ICBC’s financial results and plans are
reviewed by the Treasury Board.             Government’s Select Standing Committee on Crown
Corporations, whose mandate is to improve performance reporting, also reviews ICBC’s Annual
Report and Service Plan.           Throughout the year ICBC maintains open communication with
representatives of the Ministry of Finance, Crown Agencies Secretariat, and the Minister’s Office
on financial matters because ICBC’s financial results are consolidated with government’s
financial information. For public reporting purposes, ICBC’s financial statements are audited
annually by an independent audit firm and reviewed by the Office of the Auditor General. Due

Insurance Corporation of British Columbia                                                      7.1-4
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

to the nature of ICBC’s core business of insurance, an independent actuary is also retained to
attest to the valuation of ICBC’s claims and premium liabilities.

B.2     MANAGEMENT
13.     Upon approval of the corporate business plan by the Board of Directors, ICBC’s
President and CEO empowers management to incur expenditures necessary for the
implementation of the approved corporate business plan, and subject to established corporate
policies for approval of expenditures. Divisional plans are aligned with the corporate business
plan and serve as the basis for management performance planning within each division.

14.     Throughout the year, ICBC’s financial performance is scrutinized at a number of levels,
with particular reference to the four main variables that affect ICBC’s finances: premiums,
claims costs, investment income, and operating expenses. ICBC’s actual financial results are
reviewed to identify variances from plan and prior experience, to identify deterioration in trends,
and to determine whether further analysis and/or corrective actions need to be taken.

15.     A number of the key monitoring and reporting activities undertaken within ICBC are:

        •    On a monthly basis, financial results and performance against corporate measures
             are reviewed by the Executive. Operating expenses are also reported by division,
             including staffing levels. Variances are investigated and action plans are developed.

        •    On a quarterly basis, a detailed analysis of future claims costs are undertaken and
             the results are reviewed with Executive. In addition, corporate performance and
             financial results are reviewed by the Board of Directors.

        •    Throughout the year, an outlook of current year’s financial results and multi-year
             forecast is prepared periodically in support of corporate and government forecasting
             requirements. Outlooks are used to reflect the changes that have occurred in the
             operational environment since the budget was established and are approved by the
             Board of Directors.




Insurance Corporation of British Columbia                                                      7.1-5
March 16, 2007
A                                      ICBC March 16,2007 Filing with the BC Utilities Commission

C       SUMMARY OF OPERATING EXPENSES
16.     Operating expenses are defined as all costs (compensation and other operating costs)
to run ICBC's insurance and Non-insurance business with the exception of claims payments,
broker commissions, and premium taxes. Operating expenses represent approximately 14% of
the total costs of ICBC. ICBC operates as an integrated organization enabling ICBC to achieve
economies of scale, which benefits policyholders. Operating expenses are managed within the
divisional structure. For this reason, a discussion of each division and the drivers for changes in
divisional costs are discussed in the following chapters.           Depending on the nature of the
expense, changes from year-to-year may differ from the overall trend for corporate operating
expenses.

17.     The organizational chart below provides the current divisional structure. Corporate costs
are costs managed corporately by the Finance Division and do not relate to a specific division,
and are also discussed as a separate chapter.

               -
Figure 7.1.1 Organizational Chart




                         Insurance. Marketing    Finance Division   Human Resources     Information Services
                            & Underwriting                          and Corporate Law



18.     The following is a summary of ICBC's operating expenses from 2005 to 2007.




Insurance Corporation of British Columbia                                                                 7.1-6
March 16,2007
                                               ICBC March 16, 2007 Filing with the BC Utilities Commission

Figure 7.1.2 - ICBC’s Operating Expenses
                                                                              ($ millions)
 Line                                                     2005          2006             2006           2007
 No.                  Description                        Actual       Forecast          Actual        Forecast                 Reference

   1    Operations (1)                                    $286.0           $295.1        $298.6            $301.8     Chapter 7.2, Fig. 7.2.2; Line 6
   2    Insurance                                           30.0             31.6          33.1              35.0     Chapter 7.3, Fig. 7.3.1; Line 3
   3    Finance                                             70.2             74.5          73.0              76.1     Chapter 7.4, Fig. 7.4.1, Line 6
   4    Human Resources & Corp. Law                         14.0             15.0          14.0              15.2     Chapter 7.5, Fig. 7.5.1; Line 5
   5    Information Services (ISD)                          70.5             80.9          74.1              74.9     Chapter 7.6, Fig. 7.6.2; Line 4
   6    Corporate Costs                                     43.3             40.4          19.2              25.0     Chapter 7.7, Fig. 7.7.1, Line 5

   7    Total Operating Expenses                          $514.0           $537.5        $512.0            $528.0

        Note 1: On March 8, 2007 ICBC initiated a reorganization of the reporting structure of the Operations Division. There is no increase to the
        2007 forecast for operating expenses associated with this reorganization.



   8    Service Fees                                      ($36.4)         ($46.3)        ($47.2)           ($57.4)    Chapter 7.7, Fig. 7.7.1, Line 6




19.      As noted in Figure 7.1.2, Line 8, Service Fees are no longer considered as an offset to
operating expenses. Service fees consist of revenue earned primarily from ICBC’s Payment
Plan as well as cancellation fees from customers who cancel their insurance policies. Prior to
2005, service fees were recorded as a recovery of expenses and were included in general
corporate costs. In 2005 ICBC retroactively changed its financial statement presentation for
reporting these fees. The service fees have increased significantly over the years and are now
presented separately as a component of earned revenues. As a result the service fees have
been removed from the determination of total corporate costs and are described in more detail
under Chapter 7.7 Corporate Costs Operating Expenses. This change does not affect the
discussion of operating expenses in other divisional chapters.

C.1      MAJOR FORECAST VARIANCES IN 2006 OPERATING EXPENSES
20.      The most significant variance in 2006 actual expenditures from the 2006 forecast
(presented to the Commission in the 2006 oral hearing) relates to corporate costs, specifically
corporate project expenditures and general corporate costs. These are discussed in more detail
in Chapter 7.7 Corporate Costs Operating Expenses. Other variances are due to lower than
expected expenditures in divisions related to compensation as a result of hiring delays and
changes in staff mix, lower computer mainframe and telecom costs, and lower facilities and
other costs. The most significant divisional variance occurred within the Information Services




Insurance Corporation of British Columbia                                                                                                       7.1-7
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

Division and a discussion can be found in Chapter 7.6. Other divisional variances, to the extent
they are material, are discussed in their respective chapters.

21.     For 2007 the level of variance between forecast and actual expenditures is not expected
to reoccur due to a corporate focus on implementing business changes in support of ICBC’s
revised corporate strategy, further deferral of required investments in technology and facilities is
no longer prudent, and increases in compensation have alleviated some of the challenges
associated with recruitment of qualified employees.

C.2     MAJOR CHANGES IN 2007 FORECAST OPERATING EXPENSES
22.     The compensation component of the 2007 operating expenses forecast takes into
account the increases to compensation for bargaining unit employees as negotiated in 2006
with the Canadian Office and Professional Employees Union (“COPE”) and increases
implemented for non-bargaining unit employees in 2006. The agreement with COPE is for four
years and is in effect from July 1, 2006 to June 30, 2010.               Compensation increases for
bargaining unit employees were 1.6% for 2006 and are forecast at 3.1% for 2007. These
increases represent the negotiated change in rates under the contract. In the case of non-
bargaining unit employees, compensation increased by 3.9% in 2006 and further changes,
consistent with the Public Sector Employees’ Council Compensation Guidelines (“PSEC”), are
anticipated for 2007. Compensation increases for bargaining unit employees and management
group employees represent approximately $10.2 million of additional costs in 2007 forecast over
2006 actual. A further increase of $3.6 million in compensation is attributable to an increase in
staffing levels corporately. Further details on these increases are provided in the following
chapters for each division.

23.     In 2007 ICBC will be focused on changes necessary to achieve the objectives set out in
its revised corporate strategy.             In order to accomplish this, a corporate project fund of
$25 million is required (an increase of $7.5 million over 2006 actual) to undertake the business
initiatives and projects for these business changes.

24.     Additional net increases of $4.5 million in other components of corporate costs are offset
by the reduction of $6.2 million in compliance payments. These changes are discussed in more
detail in Chapter 7.7 Corporate Costs.



Insurance Corporation of British Columbia                                                       7.1-8
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

25.     Net changes in other types of operating expenses, including overtime, contractor costs,
and performance pay, result in a decrease of $3.6 million between 2006 actual and 2007
forecast.




Insurance Corporation of British Columbia                                                   7.1-9
March 16, 2007
                                    CHAPTER 7.2

                                    OPERATIONS




Insurance Corporation of British Columbia
March 16, 2007
                                                   ICBC March 16th Filing with the BC Utilities Commission



                                            Table of Contents
A Operations Division ........................................................................................................7.2-1
     A.1 Overview ...................................................................................................................7.2-1
     A.2 Divisional Operating Expenses .................................................................................7.2-2
     A.3 Drivers of Divisional Operating Expense ..................................................................7.2-3

B Business Categories Within Operations Division........................................................7.2-7
     B.1 Loss Management ....................................................................................................7.2-7
         B.1.1 Loss Management Operating Expenses .......................................................7.2-8
     B.2 Driver Licensing ........................................................................................................7.2-9
         B.2.1 Driver Licensing Operating Expenses.........................................................7.2-10
     B.3 Call Centres ............................................................................................................7.2-11
         B.3.1 Call Centres Operating Expenses...............................................................7.2-12
     B.4 Regional Claims Operations ...................................................................................7.2-13
         B.4.1 Regional Claims operations Operating Expenses.......................................7.2-14
     B.5 Specialized Claims .................................................................................................7.2-15
         B.5.1 Specialized Claims Operating Expenses ....................................................7.2-17
     B.6 Business Support....................................................................................................7.2-19
         B.6.1 Business Support Operating Expenses ......................................................7.2-20

C Conclusion.....................................................................................................................7.2-21

Addendum ...........................................................................................................................7.2-22




Insurance Corporation of British Columbia                                                                                            7.2-i
March 16, 2007
                                             ICBC March 16th Filing with the BC Utilities Commission



                                        Table of Figures
Figure 7.2.1 – Operations Division Diagram ....................................................................... 7.2-1
Figure 7.2.2 – Divisional Operating Expenses and FTEs ................................................... 7.2-2
Figure 7.2.3 – Loss Management Operating Expenses and FTEs ..................................... 7.2-8
Figure 7.2.4 – Driver Licensing Operating Expenses and FTEs ......................................... 7.2-10
Figure 7.2.5 – Call Centres Operating Expenses and FTEs ............................................... 7.2-12
Figure 7.2.6 – Regional Claims Operations Operating Expenses and FTEs ...................... 7.2-14
Figure 7.2.7 – Specialized Claims Operating Expenses and FTEs .................................... 7.2-18
Figure 7.2.8 – Business Support Operating Expenses and FTEs ...................................... 7.2-20




Insurance Corporation of British Columbia                                                                            7.2-ii
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission


A         OPERATIONS DIVISION
A.1       OVERVIEW
1.        The Operations Division’s two primary functions are claims processing and driver
services. Operations Division is currently the largest of ICBC’s five Divisions, accounting for
approximately 57% of the total expenses and 72% of the workforce (2007 forecast). Divisional
responsibilities can be classified into three general areas:

          •   Prevention - preventing claims through loss management and driver services

          •   Processing - processing claims that are reported

          •   Support - providing business support services to the Operations Division and ICBC
              as a whole.

2.        For the purpose of this Chapter, and in an effort to provide a comprehensive overview,
the Operations Division has been grouped into six distinct business categories that are further
grouped under Prevention, Processing or Support.                      The six business categories will be
discussed in more detail later in this Chapter. These business categories remain unchanged
from those used in ICBC’s 2006 Revenue Requirements Application. A schematic diagram of
the Operations Division reflecting the three general areas of Prevention, Processing and
Support and the six business categories is set out in Figure 7.2.1 below.

Figure 7.2.1 – Operations Division Diagram

                                             Operations Division



                 Prevention                                     Processing                            Support


                                                 Call Centres
          Loss
       Management                                                                          Business
                                               Regional Claims                             Support
                                                 Operations
     Driver Licensing

                                                 Specialized
                                                   Claims


Insurance Corporation of British Columbia                                                               7.2-1
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

3.       The Operations Division focuses on serving ICBC’s customers and on managing
operating and claims costs. Over the past year, the Operations Division has increased its focus
on managing bodily injury claims costs as described in Section A.3 below. A full discussion of
ICBC’s progress with the bodily injury claims cost issue and its approach to the management of
those costs appears in Chapter 5.

A.2      DIVISIONAL OPERATING EXPENSES
4.       Total operating expenses and full time equivalents (FTEs) from 2005 to 2007 for the
Operations Division are shown in the figure following.

Figure 7.2.2 – Divisional Operating Expenses and FTEs

                                                                   ($ millions)
 Line                                        2005           2006         2006         2007
 No.            Description                 Actual      Forecast       Actual     Forecast             Reference


     1   Compensation                       $239.9        $250.6      $255.4        $257.6
     2   General Expenses                     24.9          24.9         23.3          23.0
     3   Program Expenses                     29.8          30.1         29.3          30.6
     4   Expense Recoveries                   (8.6)       (10.5)         (9.4)        (9.4)
     5   Total General Expenses               46.1          44.5         43.2          44.2
         Total Operating
     6   Expenses                           $286.0        $295.1      $298.6        $301.8 Chapter 7.1, figure 7.1.2;line 1

         Full Time Equivalent
     7   Averages (FTEs)                     3,561         3,523        3,623        3,620




5.       High level descriptions of the changes from 2005 actual to the 2007 forecast are set out
below. Further details of these changes are found in the business category discussions later in
this Chapter.

6.       The most significant cost component for the Operations Division is compensation,
representing 85% of the Division’s total operating expenses for 2007.             The compensation
amounts set out in Figure 7.2.2 include the general increases as discussed in Chapter 7.1 and
other increases as discussed in the individual business category discussions set out below in
this Chapter. At the individual business category level, compensation amounts can also be
impacted by a change in the mix of salary levels and the business category discussions indicate
where this has occurred.

Insurance Corporation of British Columbia                                                                7.2-2
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

7.      General expenses mainly contain items such as computer/telecommunications, external
information processing, depreciation, office expenses, vehicle expenses, training, travel and
accommodation and professional services.             General expenses have decreased since 2005
despite the increase in FTEs, primarily as a result of the expenses related to automated
estimating being moved from operating expenses and being paid as claims costs.

8.      Program expenses consist of Loss Management enforcement, education and
awareness, road improvement and auto crime program expenses. The increase in program
expenses in 2007 is primarily as a result of an increase in the payment under the Traffic and
Road Safety Law Enforcement Funding Memorandum of Understanding signed by ICBC and
the Minister of Public Safety and Solicitor General as described in paragraph 31.

9.      Expense recoveries within the Operations Division relate to payments made to ICBC, but
do not include any amounts related to premiums.               Expense recoveries primarily relate to
Graduated Licensing Program test fees and Vehicle Claims History Report enquiries and are
used to offset costs related to those programs. The change in expense recovery from 2006
forecast is explained in Section B.2 Driver Licensing.

A.3     DRIVERS OF DIVISIONAL OPERATING EXPENSE
10.     The primary operating expense drivers for the Operations Division are claims volume
and the complexity or risk associated with a claim. The volume of claims is influenced by
factors such as driving behaviour, driver experience, weather, the number of policies sold and
the effectiveness of loss management programs.

11.     Within the Operations Division, claims handling is segmented into handling by three
different areas. Segmentation is a strategy for providing the most cost-effective and efficient
claims handling by classifying claims by their risk and then matching claims handling models
and claims handling skill sets to the risk. The three claims handling business categories are:
Call Centres, Regional Claims Operations and Specialized Claims.

12.     The Call Centres business category primarily handles low-risk/low-complexity claims
under both the Basic and Optional insurance coverages through two main areas: Telephone
Claims Department and Customer Service Centre. The majority of claims handled by Call
Centres are material damage claims handled through the Telephone Claims Department.


Insurance Corporation of British Columbia                                                      7.2-3
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

However, there is a small but growing percentage of low-risk/low-complexity bodily injury claims
handled through the Customer Service Centre, which like the Telephone Claims Department, is
a call centre environment. Rather than restricting bodily injury claims within the Basic insurance
coverage to handling through Regional Claims Operations and the face-to-face adjusting model,
ICBC directed low-risk/low-complexity bodily injury claims handling to the Customer Service
Centre call centre environment. In addition, a third area within Call Centres, the On-Going
Claims Department, handles out of province material damage claims and commercial vehicle
and fleet claims.

13.     Regional Claims Operations handles more varied and complex claims, including
contentious material damage claims and bodily injury claims ranging from low-risk/low-
complexity claims to higher-risk/higher-complexity claims through its network of regional claims
centres and its face-to-face service delivery model.           Regional Claims Operations handles
material damage claims within both the Basic insurance and Optional coverages, but bodily
injury claims handling is limited to claims within the Basic insurance coverage (although a small
number of claims do resolve above the Basic insurance coverage). Regional Claims Operations
recently introduced further segmentation of higher-risk represented and litigated claims through
the Litigation Centres discussed below.

14.     Specialized Claims handles the unique, high-risk or high-complexity claims through
departments such as Head Office Claims, Head Injury Department and Rehabilitation
Operations.

15.     In 2006 ICBC implemented changes in both the Call Centres and Regional Claims
Operations that are expected to help manage the recent rise in bodily injury claims costs.     This
Chapter addresses those changes as they relate to the Operations Division expenses. For a full
discussion of the most recent analysis of the causes of the rise in bodily injury claims costs and
ICBC’s overall response in managing these costs, see Chapter 5.

16.     The Call Centres business category implemented an expansion of the Customer Service
Centre in June 2006 to provide province-wide service as a result of demonstrated reductions in
claims and administrative costs through streamlined handling, improved customer convenience
and quick resolution through a call centre based process. As a result of the expansion of the
Customer Service Centre to province-wide claims handling, the volume of bodily injury claims


Insurance Corporation of British Columbia                                                     7.2-4
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

initially handled by the Customer Service Centre rather than through regional claim centres has
increased to over 7%. ICBC will be continuing to focus on increasing the volume of bodily injury
claims handled through the Customer Service Centre in 2007 and in future years.

17.     In Regional Claims Operations, ICBC has developed short-term and mid-term strategies
for implementation in the regional claim centres in direct response to the rising bodily injury
claims costs.      Short-term strategies are strategies capable of more immediate, near-term
implementation and that are expected to have more immediate impacts on bodily injury claims
costs. Mid-term strategies are those with a longer implementation time and that are expected to
have impacts on bodily injury claims costs within a longer time frame than the short-term
strategies.

18.     Short-term strategies were implemented in all regional claim centres in 2006 and will
continue to be employed in 2007. These strategies bring greater focus to increasing service
levels in regional claim centres by:

        •     Increasing the quality and frequency of contact with claimants, with particular
              emphasis on earlier contact with claimants and more frequent contact during the
              early stages of the claim.

        •     Promoting earlier settlement offers in order to reduce the time a claim remains open,
              which in turn reduces handling costs and the need to seek representation.

19. In addition, strategies were implemented and will continue to be employed in 2007 that
focus on higher risk claims:

        •     A risk assessment committee approval process was established. Risk assessment
              committees are comprised of managers who review and grant settlement authority to
              adjusters on all settlement proposals over $40,000 and all claims involving future
              wage loss or future care payments, regardless of value.

        •     There is increased management involvement in providing technical direction to
              adjusters and in reviewing higher-risk claims to identify whether a specialized high-
              risk claims handling process is required (through Head Office Claims or the Litigation




Insurance Corporation of British Columbia                                                      7.2-5
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

             Centre, for example) and increased senior management focus on reviewing bodily
             injury claims.

20.     Another initiative within Regional Claim Operations is the establishment of a Litigation
Centre in 2006. The purpose of the Litigation Centre is to further segment the claims handled
within Regional Claims Operations by providing specialized claims handling for represented and
litigated claims that involve complex medical and/or legal issues and consequently have higher
risk.   Expenses related to the establishment of the Litigation Centre are included in the
discussion of the Regional Claim Operations in Section B.4 below.               The full operational
expenses of the Litigation Centre on an annual basis will be realized in 2007. The Litigation
Centre is considered to be a mid-term strategy due to the longer cycle time for the settlement of
represented and litigated claims. As a result, ICBC expects to start seeing the impact of the
Litigation Centre reflected in the management of claims costs in 2007.

21.      The Litigation Centre bodily injury adjusters are being provided with additional training
with respect to medical issues, legal issues and legal process and more access to specialized
claims administrative support to allow bodily injury adjusters to spend more time on the actual
claim and less time on the administrative aspects. The bodily injury adjusters will also have
smaller caseloads to ensure that time is available for the proactive management required for
higher-risk claims. Bodily injury adjusters for the Litigation Centre are being transferred from
regional claim centres in order to match highly skilled and experienced employees with the
higher-risk claims that are being handled in the Litigation Centre.

22.      In addition to the specific strategies adopted by ICBC as described above, ICBC
continues to refine its existing programs. In 2006 the Rehabilitation Operations area, which
works with catastrophically injured claimants to maximize their rehabilitation fund under the
Basic insurance coverage, expanded the Hospital Discharge Program to the provincial level.
The Hospital Discharge Program was established in 2004 in the Lower Mainland in order to
increase customer service through the facilitation of early discharge of ICBC claimants from
acute care hospitals and the provision of services and equipment that allow the safe return
home. The Hospital Discharge Program creates cost efficiencies through saved hospital costs
and injured parties and their families appreciate getting home sooner with the injured party’s
care needs in place.




Insurance Corporation of British Columbia                                                      7.2-6
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

B        BUSINESS CATEGORIES WITHIN OPERATIONS DIVISION
23.      The six business categories in the Operations Division are:

         •   Loss Management

         •   Driver Licensing

         •   Call Centres

         •   Regional Claims Operations

         •   Specialized Claims

         •   Business Support.

24.      These categories, along with their total operating expenses and FTEs, are described
below.

B.1      LOSS MANAGEMENT
25.      Loss Management encompasses the Road Safety, Auto Crime Prevention and Fraud
Prevention and Investigations business areas that provide a direct benefit to all British
Columbians through reduced claims costs.              The Road Safety business area develops and
manages programs designed to promote and improve road safety by preventing traffic crashes
and preventing or reducing the severity of injuries resulting from crashes.

26.      Auto crime prevention programs are intended to prevent vehicle thefts, vehicle break-ins
and vehicle vandalism. Auto crime prevention programs also improve road safety by preventing
collisions involving stolen vehicles. These objectives are achieved by providing support for
enhanced police enforcement and by partnering with stakeholders such as local governments
and community crime prevention groups. All British Columbian vehicle owners, regardless of
whether they obtain insurance coverage for vehicle theft from ICBC, benefit from ICBC’s auto
crime prevention initiatives.

27.      The Fraud Prevention and Investigations Department develops and manages programs
designed to prevent, detect and deter fraudulent claims and business practices.              Fraud



Insurance Corporation of British Columbia                                                     7.2-7
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

Prevention and Investigations’ key objectives are to minimize the costs of fraudulent claims and
to continually assess all types of fraud perpetrated against ICBC, which is estimated to cost
approximately $100 per policy.          In 2003 ICBC initiated a corporate “zero tolerance for fraud”
strategy for identification of all fraud perpetrated against ICBC and for implementing policies and
procedures that deal with fraud in a fair and consistent manner.

B.1.1 LOSS MANAGEMENT OPERATING EXPENSES

28.       Total operating expenses and FTEs from 2005 to 2007 for the Loss Management
Category are shown in the figure following.

Figure 7.2.3 – Loss Management Operating Expenses and FTEs

                                                                     ($ millions)
 Line                                               2005         2006                2006         2007
 No.                Description                   Actual     Forecast               Actual    Forecast


      1      Compensation                          $12.9        $13.3                $13.9       $14.3

      2      General Expenses                        3.6           3.9                 3.5          3.8
      3      Program Expenses                       29.8          30.1                29.3         30.6
      4      Total General Expenses                 33.4          34.0                32.8         34.4
      5      Total Operating
             Expenses                              $46.3        $47.3                $46.7       $48.7


      6      Full Time Equivalent
             Averages (FTEs)                         156          157                 161           163

29.       In addition to the general compensation increases discussed in Chapter 7.1,
compensation is increasing in the Loss Management area to increase capacity to conduct crash
data analysis and road evaluations and to increase the ability to deliver targeted local road
safety programs, such as impaired and aggressive driving programs, by working in conjunction
with municipal councils, police, community groups and local businesses. Fraud Prevention
FTEs were increased to conduct vehicle identification number investigations and to provide
legal support for fraud investigations.

30.       General expenses are for items such as computer/telecommunications, travel and
accommodation, vehicle expenses, office expenses and professional services.                  General



Insurance Corporation of British Columbia                                                       7.2-8
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

expenses were lower in 2006 due to lower volumes of intersection safety camera violation
tickets which reduced expenses related to the issue of violation tickets.

31.     Over 85% of the program expenses in the 2007 forecast relate to enforcement programs
under the Traffic and Road Safety Law Enforcement Funding Memorandum of Understanding
and to the road improvement program. The program expenses have risen from 2005 to the
2007 forecast primarily as a result of contractual increases in payments under the Traffic and
Road Safety Law Enforcement Funding Memorandum of Understanding. Under the terms of
the Memorandum of Understanding, ICBC pays an amount equal to 1% of Basic insurance
premiums earned in the calendar year two years prior. For 2007 the payment has increased to
approximately $17.4 million from $17.0 million in 2006 as a result of an increase in Basic
insurance premiums earned in 2005 over 2004.

32.     Program expenses in 2006 were below the 2006 forecast as a result of road
improvement program projects being cancelled or not completed due to weather conditions.
ICBC makes payments for the road improvement projects on completion, rather than by
providing funding in advance.

B.2     DRIVER LICENSING
33.     ICBC has been delegated the responsibility for service delivery and administrative
responsibilities associated with driver licensing in BC as prescribed by the government in
legislation and regulations. Services provided within the Driver Licensing business category
are:

        •    The day-to-day delivery of driver licensing services to British Columbians.

        •    Regulation of driver training schools.

        •    The issuance of BC ID cards.

        •    In conjunction with the Ministry of Public Safety and Solicitor General, the
             development and implementation of programs directed at drivers.

        •    Administration of programs developed and overseen by the Ministry of Public Safety
             and Solicitor General through the Office of the Superintendent of Motor Vehicles


Insurance Corporation of British Columbia                                                     7.2-9
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

             related to the removal of driver’s licences for reasons such as driving prohibitions
             and medical issues.

34.       Licensing services, with service standards set in co-operation with the Ministry of Public
Safety and Solicitor General, are delivered by 120 offices throughout BC, including 22 Driver
Service Centres offering the full range of licensing services, 29 Government Agent offices and
69 Appointed Agent offices.

B.2.1 DRIVER LICENSING OPERATING EXPENSES

35.       Total operating expenses and FTEs from 2005 to 2007 for the Driver Licensing category
are shown in the figure following.

Figure 7.2.4 – Driver Licensing Operating Expenses and FTEs

                                                                     ($ millions)
 Line                                               2005         2006                2006        2007
 No.                Description                   Actual     Forecast               Actual   Forecast


      1      Compensation                          $29.5        $31.0                $32.6      $31.8

      2      General Expenses                         5.7          6.1                 6.4          6.2
      3      Expense Recoveries                     (3.4)        (5.3)               (3.9)        (4.1)
      4      Total General Expenses                   2.3          0.8                 2.5          2.1
      5      Total Operating
             Expenses                              $31.8        $31.8                $35.1      $33.9


      6      Full Time Equivalent
             Averages (FTEs)                         507          522                 538          538

36.       Compensation cost increases from 2005 to the 2007 forecast are primarily related to
increases in Driver Services Centre employees. These FTEs were added due to increased road
test volumes in Driver Services Centres, which were up approximately 14% in 2006. The 2006
and 2007 compensation costs also include the compensation increases discussed in Chapter
7.1.

37.       General expenses are comprised of such items as driver licence production costs,
external information processing, office expenses, computer/telecommunications, travel and
accommodation and vehicle expenses. General expenses have increased primarily due to an

Insurance Corporation of British Columbia                                                      7.2-10
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

increase in driver licence production and an increase in postage and printing costs as a result of
a higher demand for road test packages and guides and mailings related to the Drinking and
Driving Rehabilitation Program, the Drinking and Driving Interlock Program and violation ticket
booklets for police detachments.

38.     Expense recoveries relate to the retention of road test fees. Expense recoveries are at
higher levels in 2006 and 2007 than in 2005 due to a higher number of road tests and the
impacts of the 2003 Graduated Licensing Program enhancements in 2003. As part of those
enhancements, the novice stage was increased from 18 months to 24 months for both drivers
newly entering the novice stage and those already in the novice stage, pushing out the date
when those drivers could take their Class 5 road test. In addition, there is a higher number of
novice class licences beginning to expire (they are issued for a five-year term), resulting in
those drivers taking road tests. The recoveries in 2006 have not matched the 2006 forecast as
a result of an error in the recovery forecasting for 2006 that was not discovered until after the
forecasting was completed, but has been corrected.

B.3     CALL CENTRES
39.     The Call Centres are responsible for:

        •    Claims initiation and handling through the Telephone Claims Department and the
             Customer Service Centre, as well as providing claims information and responding to
             general claims enquiries.

        •    Insurance and licensing information and services for the general public.

        •    Product and processing support for brokers.

40.     Three departments within the Call Centres category initiate and handle claims:
Telephone Claims Department (TCD), the Customer Service Centre and On-Going Claims.
Almost all new claims are initiated through TCD which operates 24 hours per day 365 days a
year. In addition to taking claim reports and initiating claims, TCD also retains and adjusts
material damage claims through to conclusion and the Customer Service Centre handles low-
risk/low-complexity bodily injury claims. A third group, On-Going Claims, handles all out of
province material damage claims and commercial vehicle and fleet claims for customers such



Insurance Corporation of British Columbia                                                     7.2-11
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

as municipalities, Translink and the Ministry of Transportation, and has a specialized group to
handle claims retained by TCD for adjusting that become contentious.

41.       In 2006, the Operations Division commenced a quality call monitoring initiative in order
to increase Call Centres performance and to understand the drivers of high customer
satisfaction. The purpose of this initiative is to acquire a call monitoring system that will include
the ability for Call Centre employees, supervisors and managers to access desktop screens and
to electronically record calls. The access to desktop screens and the electronically recorded
calls can be used for coaching, training and assessment purposes.             Purchase of the new
technology was completed in 2006 and will be operational in 2007. This new technology will be
available for use in all of the Operations Division Call Centres.

B.3.1 CALL CENTRES OPERATING EXPENSES

42.       Total operating expenses and FTEs from 2005 to 2007 for the Call Centres category are
shown in the figure following.

Figure 7.2.5 – Call Centres Operating Expenses and FTEs

                                                                     ($ millions)
 Line                                               2005         2006                2006         2007
 No.                Description                   Actual     Forecast               Actual   Forecast


      1      Compensation                          $34.7        $34.2                $37.2       $36.9

      2      General Expenses                         1.5          1.4                 1.5           1.5
      3      Expense Recoveries                     (4.0)        (4.0)               (4.1)         (4.0)
      4      Total General Expenses                 (2.5)        (2.6)               (2.6)         (2.5)
      5      Total Operating
             Expenses                              $32.2        $31.6                $34.6       $34.4


      6      Full Time Equivalent
             Averages (FTEs)                         531          498                 553           544

43.       Compensation levels were forecast to decline in 2006 in anticipation of efficiencies as a
result of the Customer Service Transition Project. However, those efficiencies were offset by
other increases as a result of the provincial implementation of the Customer Service Centre and
increased FTEs in TCD with the establishment of the increased corporate service level target for
new claims initiation of 80% of the calls answered in 100 seconds. A re-alignment of budget

Insurance Corporation of British Columbia                                                       7.2-12
March 16, 2007
                                               ICBC March 16th Filing with the BC Utilities Commission

from Information Services Division to Operations Division occurred in early 2006 to support the
FTE increase in TCD. FTEs are forecast to decrease in 2007 as a result of efficiencies gained
from the Customer Service Transition Project. The compensation costs for 2006 and 2007
include the increases referred to in Chapter 7.1.

44.        General expenses are comprised of such items as computer/telecommunications, office
expenses, employee training, travel and accommodation and professional services. General
expenses have remained relatively constant.

45.        Expense recoveries are related to the fees collected by ICBC for Vehicle Claims History
Reports.        Total general expenses are negative as these recoveries exceed the general
expenses. The level of expense recoveries is expected to remain relatively constant in 2007.

B.4        REGIONAL CLAIMS OPERATIONS
46.        Regional Claims Operations is comprised of the claims related activities conducted at
ICBC’s regional claim centres, regional claims specialty units and regional claims administration
offices. Regional Claims Operations handles the majority of claims that are reported to ICBC.
The Regional Claims Operations category handles:

           •    Bodily injury claims (within the Basic insurance limit) and accident benefit claims.1

           •    Property damage claims under the Basic insurance coverage.

           •    Collision and comprehensive claims under Optional insurance coverage.

47.        Claims serviced within Regional Claims Operations pose more complex issues than
those that can be managed from the Call Centres and, generally speaking, are of greater
financial significance. As more complex claims require a greater level of investigation and
expertise, employees must possess more technical skills and claims are handled through a
“face-to-face” model.           The work handled within Regional Claims Operations includes the
investigation of coverage issues, investigation of liability, investigation of potentially fraudulent




1
    A small number of bodily injury claims handled in a regional claim centre settle in excess of the $200,000 limit.

Insurance Corporation of British Columbia                                                                           7.2-13
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission


claims and the identification of opportunities for recovery and subrogation.             Employees in
regional claim centres are also involved in the planning and implementation of customer service
initiatives.

48.       As discussed above in Section A.3, employees in Regional Claims Operations are
responsible for implementing and carrying out a number of key strategies aimed at reducing
bodily injury claims costs.

49.       In response to customer feedback, ICBC increased the hours of operation at selected
regional claims centres in February 2007 to provide both early morning and later appointments.
The purpose of extended hours is to increase customer convenience and accessibility to claims
handling services.       Regional Claims Operations has been able to offer extended hours of
service using existing FTE levels.

B.4.1 REGIONAL CLAIMS OPERATIONS OPERATING EXPENSES

50.       Total operating expenses and FTEs from 2005 to 2007 for the Regional Claims
Operations category are shown in the figure following:

Figure 7.2.6 – Regional Claims Operations Operating Expenses and FTEs

                                                                     ($ millions)
 Line                                               2005         2006                2006         2007
 No.                Description                   Actual     Forecast               Actual     Forecast


      1        Compensation                       $118.4       $124.7               $123.2       $124.8
      4        General Expenses                      6.8          6.3                  6.5          6.2
      5        Total Operating
               Expenses                           $125.2       $131.0               $129.7       $131.0


      6        Full Time Equivalent
               Averages (FTEs)                     1,771        1,743                1,755        1,742

51.       Compensation costs were below forecast in 2006, despite the increase in FTEs and the
compensation increases described in Chapter 7.1 due to a change in mix in position levels in
Regional Claims Operations. There was an increase in lower paid administrative FTEs and a
decrease in the number of higher paid estimator and material damage adjusting FTEs. The


Insurance Corporation of British Columbia                                                       7.2-14
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

compensation cost forecast for 2007 takes into account the compensation increases described
in Chapter 7.1. FTEs are forecast to be below 2006 levels primarily as a result of efficiencies
gained from Enhanced Express Repair (a program authorizing qualified repair shops to initiate
and estimate material damage claims, thereby reducing the level of estimating provided by
Regional Claims Operations).

52.     General expenses are comprised of such items as vehicle expenses, depreciation,
employment        expenses,       office    expenses,   computer/telecommunications,   travel    and
accommodation and employee training. The general expense decrease between 2005 and the
2007 forecast is primarily due to the movement of insurance costs to the Finance Division and
the reduction in FTEs.

B.5     SPECIALIZED CLAIMS
53.     Specialized Claims deals with the handling of unique, high-risk or high-complexity claims
through the Specialized Injury, Rehabilitation Operations and Specialized Material Damage
business areas. Specialized Claims also includes the Salvage and Litigation business areas.

54.     Specialized Injury is responsible for managing complex and high-risk claims that have
significant financial implications and therefore the need for specialized employees with the
appropriate skills and knowledge to manage these claims in an effective manner. Specialized
injury includes Head Office Claims (claims involving significant injury and/or complex legal
issues), Head Injury Department and Out of Province Claims (for bodily injury) which handles
bodily injury claims for BC motorists involved in motor vehicle accidents that occur outside of BC
and/or involve parties residing outside of BC.

55.     Rehabilitation Operations develops services and support for catastrophically injured
claimants and serves a caseload of approximately 2,500 claimants. Rehabilitation Operations
assists injured claimants in reaching their highest level of functioning through working with their
rehabilitation team to develop a realistic rehabilitation plan and by maximizing the value that can
be obtained from the available rehabilitation fund under the Basic insurance coverage. In order
to improve efficiency, Rehabilitation Operations completed an update of the Bodily Injury
Rehabilitation Database application in 2006. The Bodily Injury Rehabilitation Database is a
case management and claim file handling system that captures and organizes over 200 areas of
claim handling information, enabling standardized claim handling procedures and the reduction


Insurance Corporation of British Columbia                                                       7.2-15
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

in duplication of effort. The Bodily Injury Rehabilitation Database application also assists in
automatically generating progress reports to claim files.

56.     Specialized Material Damage provides the following specialized material damage
services:

        •    Processing and estimating vehicles rendered non-drivable as a result of a motor
             vehicle crash through the Centralized Estimating Facility.

        •    Management of the collision and glass repair industry relationships, program
             development and administration for the collision and glass repair programs and
             monitoring of collision and glass repair shops program compliance, including those
             participating in the Express Repair Program and Express Glass Program (the
             Express Programs allow claimants whose claims meet pre-determined criteria to
             proceed directly to a qualified external supplier to complete the estimate and vehicle
             repairs). This area also administers the Collision Repair Industry Agreement. The
             Collision Repair Industry Agreement was entered into in 2005 between ICBC and the
             Collision Repair Industry in order to improve repair shop performance and provide
             stability in repair costs for the benefit of customers.

        •    Processing and estimating large loss material damage claims resulting from
             commercial trucking crashes and environmental contamination.            Estimates are
             carried out at regional claim centres throughout BC or at heavy equipment repair
             facilities as required.

57.     Salvage coordinates the storage, marketing and sale of salvage vehicles at six salvage
storage locations throughout the province. When ICBC acquires salvage, it is inventoried then
offered for sale either using a web-based closed bid auction process or by tender contract.
Recoveries from the sale of salvage reduce claims costs.

58.     Litigation is comprised of two departments:

        •    Special Counsel oversees the acceptance of approximately 16,000 writs of summons
             served on ICBC annually, the assignment of in-house and external defence counsel




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March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

             to litigated claims and the management of external defence counsel currently under
             contract to ICBC.

        •    Provincial Litigation Services is comprised of the in-house defence counsel who work
             closely with Regional Claims Operations. Nearly all of the litigation files handled by
             Provincial Litigation Services are bodily injury files that settle below the compulsory
             third party insurance limit and accident benefit files related to those bodily injury files.
             Provincial Litigation Services handles approximately 18-20% of the number of
             assignments made each year by Special Counsel, with the remainder going to
             external counsel.

59.     In 2007 Special Counsel anticipates implementation of the Integrated Counsel
Evaluation and Management Information system, an enhanced counsel performance
management application that will integrate with other ICBC information systems to collect key
information about litigated claims. After the system has been fully implemented and data sets
have been collected, ICBC will be able to measure the value and cost-effectiveness of, and
enhance its relationship with, its external counsel and will be able to develop consistent,
corporate-wide best practices in litigated file handling.

B.5.1 SPECIALIZED CLAIMS OPERATING EXPENSES

60.     Total operating expenses and FTEs from 2005 to 2007 for the Specialized Claims
category are shown in the figure following.




Insurance Corporation of British Columbia                                                          7.2-17
March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

Figure 7.2.7 – Specialized Claims Operating Expenses and FTEs

                                                                            ($ millions)
    Line                                              2005            2006                  2006              2007
    No.               Description                  Actual        Forecast                  Actual        Forecast


      1        Compensation                          $30.4            $32.4                 $32.7            $34.0

      2        General Expenses                         2.1              2.2                  2.4               2.6
      3        Expense Recoveries                     (0.2)            (0.3)                (0.2)             (0.4)
      4        Total General Expenses                   1.9              1.9                  2.2               2.2
      5        Total Operating
               Expenses                              $32.3            $34.3                 $34.9            $36.2


      6        Full Time Equivalent
               Averages (FTEs)                         426              426                  434               448

61.        Compensation has increased from the 2005 level primarily as a result of increased
paralegal support to Provincial Litigation Services in order to increase file handling capacity and
efficiency, the governance required to support the Collision Repair Industry Agreement2 and the
movement of additional estimating of non-drivable vehicles to Specialized Claims Handling from
Regional Claims Operations. Compensation costs in 2006 and in the 2007 forecast also take
into account the general increases as discussed in Chapter 7.1.

62.        General expenses are comprised of such items as office expenses, vehicle expenses,
depreciation,         travel     and        accommodation,         dues        and     memberships          and
computer/telecommunications. General expenses have increased since 2005 as a result of an
increase in vehicle travel and accommodation expenses for repair shop drop-in visits,
compliance reviews and audits; professional services and postage costs associated with the
glass programs.         These increases are being offset in the 2007 forecast by an increase in
recoveries. Expense recoveries in this category are primarily from salvage buyer fees and sales
of Head Restraint Measuring Devices.




2
    However, as a result of the enhancement to Express Repair under the Collision Repair Industry Agreement, ICBC
    has been able to reduce estimator positions in Regional Claims Operations.

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March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

B.6     BUSINESS SUPPORT
63.     Employees in the Business Support area do not handle claim files. Business Support
works to put in place the technologies, training and programs that support front-line employees
as well as providing a wide range of business support services for the Operations Division and
other Divisions, particularly in the area of customer service support. Business Support services
include business analysis; coordination and development of strategic plans, operating plans,
performance plans and change readiness plans; and development of and support to initiatives
and projects through claims business services, change management and planning functions.

64.     The Business Support area includes Material Damage Services and Bodily Injury
Services. Material Damage Services and Bodily Injury Services act as centralized strategic,
tactical and operational support areas and focal points for issues related to material damage
and bodily injury claims handling.

65.     Bodily Injury Services manages ICBC’s relationship with external organizations such as
the Office of the Public Guardian and Trustee, the BC Medical Association and relevant
professional organizations. In addition, Bodily Injury Services provides web-based and other
knowledge management to bodily injury adjusters including, for example, the Official Disability
Guidelines, a third party web enabled evidence-based disability management tool. The Official
Disability Guidelines provide treatment options and expected outcomes for all types of injuries
and assist adjusters in communicating with medical professionals. In 2006, with the recent
appointment of a new director position for Bodily Injury Services, Bodily Injury Services has
played an integral role with respect to the development of strategies to manage bodily injury
claims costs as described in Chapter 5 of this Application and will continue that role in 2007.

66.     Material Damage Services provides leadership and direction for material damage
strategies throughout the province, including material damage claims handling strategies to
optimize customer service, improve productivity, manage claims costs and reduce the frequency
and severity of crashes. Material Damage Services also is responsible for developing and
maintaining business relationships with external partners and stakeholders in the material
damage area and represents ICBC at industry meetings. Material Damage Services includes
Material Damage Research & Training, which oversees research into vehicle safety and
repairability issues, investigates vehicle defects and recalls and provides training and
development programs for ICBC and the automotive industry.

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March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

67.       Customer service support is provided by the Corporate Customer Satisfaction and
Privacy and Fair Practices business areas.              Corporate Customer Satisfaction establishes
customer initiatives that assist ICBC in becoming more customer focused and facilitate the
customer service measurement and target setting.              Customer feedback and surveys are
analyzed to identify opportunities to improve customer service in Call Centres, Regional Claims
Operations and Driver Licensing.            Corporate Customer Satisfaction also includes Alternate
Dispute Resolution and Claims Assessment Review. Alternate Dispute Resolution provides
claims mediation coordination services for litigated claims and Claims Assessment Review
provides customers with an alternative to litigation in liability disputes.

68.       Privacy and Fair Practice handles complaints and concerns from the public, including
issues referred by the Minister of Public Safety and Solicitor General, the BC Ombudsman or
individual MLAs. It also handles recommendations by ICBC’s Fairness Commissioner, requests
under the Freedom of Information and Protection of Privacy Act and complaints referred to
ICBC by the Commission.

B.6.1 BUSINESS SUPPORT OPERATING EXPENSES

69.       Total operating expenses and FTEs from 2005 to 2007 for the Business Support
category are shown in the figure following.

Figure 7.2.8 – Business Support Operating Expenses and FTEs

                                                                     ($ millions)
 Line                                               2005         2006                2006       2007
 No.                Description                   Actual     Forecast               Actual   Forecast


      1      Compensation                          $14.0        $15.0                $15.8      $15.8

      2      General Expenses                         5.2          5.0                 3.0         2.7
      3      Expense Recoveries                     (1.0)        (0.9)               (1.2)       (0.9)
      4      Total General Expenses                   4.2          4.1                 1.8         1.8
      5      Total Operating
             Expenses                              $18.2        $19.1                $17.6      $17.6


      6      Full Time Equivalent
             Averages (FTEs)                         170          177                 182         185



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March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission

70.     In addition to the compensation increases referred to in Chapter 7.1, compensation has
increased since 2005 primarily as a result of the demand for business support services on
initiatives such as the Customer Service Centre expansion, Collision Repair Industry
Agreement, Express Repair, Integrated Counsel Evaluation and Management Information and
the implementation of the Litigation Centre; and as a result of the addition of the directors
responsible for the Material Damage Services and Bodily Injury Services areas.

71.     General expenses are comprised of such items as external information processing,
computer/telecommunications,           office   expenses,   professional   services   and   travel    and
accommodation.        General expenses have decreased since 2005 primarily as a result of a
review of operating expenses which determined that expenses related to the automated
estimating on claims files that had been included in operating expenses should be paid as
claims costs.

72.     Expense recoveries mainly include such items as sale of repaired vehicles, fees for
material damage industry training courses and accreditation fees for body shops.


C       CONCLUSION
73.       Operations Division has taken a disciplined approach to the management of operating
expenses, with operating expenses forecast in 2007 to increase approximately 1% over 2006
actual operating costs, but at the same time is committed to delivering quality services to
customers. This includes a commitment to a strong community presence through the province-
wide network of claim and driver services offices and alternative contact systems such as TCD
which offers claim reporting access 24 hours per day 365 days a year and the Customer
Service Centre.      Operations Division continues to look for the most cost-effective and efficient
means of delivering services to its customers.




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March 16, 2007
                                            ICBC March 16th Filing with the BC Utilities Commission



Addendum
74.     On March 8, 2007 ICBC initiated a reorganization of the reporting structure of the
Operations Division.        There is no increase to the 2007 forecast for operating expenses
associated with this reorganization.




Insurance Corporation of British Columbia                                                     7.2-22
March 16, 2007
                                    CHAPTER 7.3

         INSURANCE, MARKETING AND
               UNDERWRITING




Insurance Corporation of British Columbia
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission



                                            Table of Contents
A Insurance, Marketing and Underwriting Division Overview........................................7.3-1
     A.1 New Divisional Structure...........................................................................................7.3-2
     A.2 Rate Design ..............................................................................................................7.3-3

B Divisional Operating Expenses .....................................................................................7.3-3

C Insurance, Marketing and Underwriting Business Areas............................................7.3-5
     C.1    Underwriting..............................................................................................................7.3-5
     C.2    Broker Relations and Sales ......................................................................................7.3-8
     C.3    Regulatory, Insurance Planning and Business Support............................................7.3-9
     C.4    Strategic Marketing .................................................................................................7.3-10

D Conclusion.....................................................................................................................7.3-12

Appendix 7.3 A – Distribution Costs.................................................................................. 7.3-A

Appendix 7.3 B – Basic Insurance Information Sharing Exhibits ................................... 7.3-B




Insurance Corporation of British Columbia                                                                                                     7.3-i
March 16, 2007
                                          ICBC March 16, 2007 Filing with the BC Utilities Commission


                                            Table of Figures
Figure 7.3.1 - Insurance, Marketing and Underwriting Operating Expenses and FTEs..........7.3-4
Figure 7.3.2 - Underwriting Operating Expenses and FTEs ...................................................7.3-7
Figure 7.3.3 - Broker Relations and Sales Operating Expenses and FTEs ............................7.3-8
Figure 7.3.4 - Regulatory, Insurance Planning and Business Support Services Operating
    Expenses and FTEs .......................................................................................................7.3-10
Figure 7.3.5 - Strategic Marketing Operating Expenses and FTEs.......................................7.3-11




Insurance Corporation of British Columbia                                                                                             7.3-ii
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A       INSURANCE, MARKETING AND UNDERWRITING DIVISION
        OVERVIEW
1.      The Insurance, Marketing and Underwriting Division is responsible for underwriting,
pricing, product development, liaison with brokers, and product distribution through brokers for
both Basic and Optional insurance. In addition, since coming under the jurisdiction of the British
Columbia Utilities Commission in 2003, an increasing amount of regulatory work is performed
by the division which has overall corporate responsibility for the filings submitted to the
Commission. The division is also responsible for the Non-insurance functions of vehicle
licensing and registration.

2.      The division supports all aspects of the sale and distribution of Basic and Optional
insurance and the vehicle registration and licensing functions. ICBC’s broker distribution
network, with approximately 900 locations throughout BC, provides both vehicle licensing and
insurance distribution functions.           The vehicle licensing, registration, and insurance transaction
is undertaken in a one-stop process in order to meet provincial vehicle registration, licensing
and Basic insurance requirements. Brokers also sell ICBC’s Optional insurance. In some areas
of the province the vehicle licensing, registration, and insurance functions are also performed by
appointed agents or government agents. By structuring its business in an integrated manner,
ICBC’s customers benefit by having the vehicle licensing, registration, and insurance
transaction conducted in a streamlined process.

3.      In 2006, the Insurance, Marketing and Underwriting Division underwent a reorganization
that saw a number of its cost-centres realigned into four business areas; Underwriting; Broker
Relations and Sales; Regulatory, Insurance Planning and Business Support; and Strategic
Marketing. The role and function of each business area is described in more detail later in this
Chapter. The purpose and goals of the divisional reorganization is discussed further below.

4.      The forecast of operating expenses for 2007 includes increases in both compensation
and general expenses. Compensation increases between the 2005 actual results and 2007
forecast amount to $2.6 million and are primarily due to the general compensation increases
referred to in Chapter 7.1. Additional compensation increases are due to incremental staffing
requirements arising from the divisional reorganization and growth of the business. In addition,
increases also arise from the increasing complexity surrounding the new regulatory framework,


Insurance Corporation of British Columbia                                                             7.3-1
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

including the additional work with the rate design process, which involves allocation of
resources to an extent that had not previously been required.

5.      General expenses will increase by $2.4 million between the 2005 actual results and the
2007 forecast. Approximately $2 million of this amount is attributable to increased marketing
expenses which are discussed further in Section C.4.

6.      Despite these increases, ICBC believes that the division’s operating expenses have
been well managed with increases to FTEs and compensation reflecting the increased amount
of work that has occurred within the division in 2006 and that will continue in 2007.

7.      In the July 2006 Decision, the Commission requested that ICBC review and evaluate
methods to reduce or contain distribution costs for Basic coverage policy renewals. ICBC’s
review appears in Appendix 7.3 A to this Chapter.

8.      Appendix 7.3 B contains the Basic insurance information exhibits filed in accordance
with the May 2004 Negotiated Settlement Agreement.

A.1     NEW DIVISIONAL STRUCTURE
9.      In 2006, the Insurance, Marketing and Underwriting Division underwent a reorganization.
As set out in ICBC’s August 2005 Application to the Commission, the division was organized
into five business areas: Product Support, Broker Support Services, Non-insurance Services,
Governance and Planning, and Insurance Support. After the divisional reorganization in 2006,
these business areas were recast into four business areas: Underwriting; Broker Relations and
Sales; Regulatory, Insurance Planning and Business Support; and Strategic Marketing. For the
purposes of this 2007 Revenue Requirement Application, all operating expenses and FTE
numbers at the business area level for 2005, 2006, and 2007 have been adjusted to align with
the business area reorganization.

10.     The goals of the reorganization are to allow the division to:

        •    Clarify departmental accountabilities.

        •    Integrate similar functions that work closely together to allow for cohesiveness and
             ease of workflow.


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March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

        •    Develop a pricing model that better reflects customers’ actual risk.

        •    Focus resources on marketing and differentiating ICBC’s products and formulating
             an integrated marketing approach that ensures ICBC’s messaging at customer
             touchpoints is consistent, in order to achieve the division’s business vision and
             objectives.

        •    Ensure an efficient and effective regulatory process.

11.     The divisional reorganization has had a negligible effect on the cost allocation between
the Basic and Optional lines of business. During the reorganization a number of cost centres
were realigned into different business areas within the division and the allocation functions of
these cost centres remains the same since their functions remained unchanged. As a result of
the divisional reorganization, several new cost centres were created and these have been
assigned existing allocation functions with consideration to the principles of cost causality.

A.2     RATE DESIGN
12.     As part of the regulatory agenda for 2007, ICBC is preparing a comprehensive overview
of its Basic insurance rate design and is planning for future changes. The overall goal of ICBC’s
Basic insurance rate design is to have Basic insurance premiums reflect the risk of causing
crashes and the associated financial implications.

13.     Several public workshops with stakeholders were held in 2006 to address the topic of
rate design and its implications to the upcoming regulatory agenda. The Insurance, Marketing
and Underwriting Division has been heavily involved in the preparation of the 2007 Rate Design
Application. This Rate Design Application coupled with work arising from the Insurance (Motor
Vehicle) Amendment Act, 2003 (Bill 93) has resulted in additional work, particularly for the
Underwriting business area in 2006, and is expected to have a continued impact in 2007 and
beyond.


B       DIVISIONAL OPERATING EXPENSES
14.     The compensation, general expenses, and full time equivalents for 2005 to 2007 for the
Insurance, Marketing and Underwriting Division are shown in Figure 7.3.1 below.




Insurance Corporation of British Columbia                                                        7.3-3
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

Figure 7.3.1 Insurance, Marketing and Underwriting Operating Expenses and FTEs
                                                            ($ millions)
 Line                                        2005        2006          2006        2007
 No.             Description                Actual     Forecast       Actual     Forecast       Reference


   1      Compensation                         $21.3        $22.5       $23.3        $23.9
   2      General Expenses                       8.7          9.1          9.8         11.1
          Total Operating                                                                  Chapter 7.1, Fig.
   3      Expenses                             $30.0        $31.6       $33.1        $35.0 7.1.2;line 2

          Full Time Equivalent
   4      Averages (FTEs)                       312          314          313          324


15.     Compensation represents almost 70% of the division’s operating expenses for 2007.
Compensation for 2007 is forecast to be $600,000 higher than the 2006 actual results and $2.6
million more than 2005 actual results. These increases are due in part to the general
compensation increases that are discussed in Chapter 7.1.

16.      In addition to the general compensation increases, higher compensation expenditures
are also due to staffing changes arising from the divisional reorganization, which were
necessary in order to perform the additional work undertaken by the division including: rate
design initiatives, insurance business changes arising from Bill 93, developing a strategic
marketing plan and direction, and increased sales support. These activities are described in
more detail in the sections that follow.

17.     A number of the new positions created during the divisional reorganization in 2006 are
not apparent in the 2006 actual FTE count and this is mainly due to staffing transitions. During
the course of the year, employees left the division for a variety of reasons and the timing of
finding replacements impacted the overall FTE count for the year. The additional FTEs noted in
the 2007 forecast are primarily required to fill these vacancies.

18.     The 2007 general expense forecast is projected to be $1.3 million higher than the 2006
actual results. Approximately $1 million of this amount is for increases in marketing
expenditures.     Additional increases noted in 2007 are primarily a result of higher costs for
underwriting forms, insurance bureau fees, and professional services.



Insurance Corporation of British Columbia                                                     7.3-4
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C       INSURANCE, MARKETING AND UNDERWRITING BUSINESS
        AREAS
19.     The Insurance, Marketing and Underwriting Division is grouped into four business areas:

        •    Underwriting is involved with making pricing and underwriting recommendations, rate
             design, and is also responsible for Non-insurance services, which delivers vehicle
             licensing and registration services.

        •    Broker Relations and Sales manages the relationship with the independent
             insurance broker network.

        •    Regulatory, Insurance Planning and Business Support performs planning and
             budgeting for the Insurance, Marketing and Underwriting Division, is responsible for
             corporate regulatory services, including coordination all of the processes surrounding
             the BCUC filings, and provides business analysis for systems changes and business
             changes related to insurance, registration, and licensing.

        •    Strategic marketing is responsible for marketing ICBC’s insurance products, and
             setting ICBC’s strategic marketing direction. This area also provides marketing
             expertise for provincial road safety campaigns, and also undertakes customer
             research.

20.     Information for each of the four business areas is presented below.

C.1     UNDERWRITING
21.     The Underwriting business area, working together with ICBC’s actuarial business area,
is responsible for making pricing and underwriting recommendations for Basic and Optional
insurance. The business area is also responsible government mandated programs related to
vehicle licensing and registration including licensing and registration of private passenger
vehicles, commercial fleet licensing, interjurisdictional commercial vehicle licensing, and
speciality licensing (demonstration, transporters, repairer, collector and antique vehicles). The
area also develops policies and processes that ensure out-of-province vehicles operated in BC
meet the same provincial minimum insurance coverage requirements.




Insurance Corporation of British Columbia                                                      7.3-5
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

22.     In 2007, ICBC will be going before the Commission with its first rate design application.
The underwriting business area, along with ICBC’s actuarial business area, is heavily involved
in the development of initiatives that will be advanced in the 2007 Rate Design Application. This
has resulted in a considerable amount increased work effort including:

        •    Review and analysis of ICBC’s current rate structure.

        •    Development of rate design initiatives and supporting business rules.

        •    Engaging in public workshops on the rate design application.

        •    Analysis of the cost and impacts of the initiatives.

        •    Establishing a long-term plan for the timing and implementation of initiatives.

23.     In addition to the services provided by the Underwriting business area for the 2007 Rate
Design Application, the area is also involved with work arising from Bill 93.

24.     In April 2006 the provincial government amended Bill 93 through the Public Safety and
Solicitor General Statutes Amendment Act, 2006.           In June 2006 an Order in Council was
passed bringing Bill 93 (as amended) into force effective June 1, 2007. The Bill 93 amendments
to the Insurance (Motor Vehicle) Act place all insurers who write Optional vehicle insurance in
the province under the same legal framework. Previously insurers other than ICBC wishing to
write Optional insurance in BC were governed under the Insurance Act, while ICBC sold its
Optional insurance under the Insurance (Motor Vehicle) Act. Now a single piece of legislation,
the Insurance (Vehicle) Act, governs all Optional insurance providers. The Insurance (Vehicle)
Act also defines the terms of the Basic insurance coverage and provides that the terms of
Optional coverage should be defined in a policy document issued to the insured by an insurer.

25.     As a result of the new legislation, members of ICBC’s Underwriting business area are
part of the project team examining the implications of Bill 93 to ICBC, ICBC’s customers,
brokers and other stakeholders. The team is also responsible for identifying and implementing
the changes ICBC will have to introduce in order to comply with the legislation. The following
describe a few of the essential changes underway:




Insurance Corporation of British Columbia                                                      7.3-6
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

          •   Development of a new Optional Policy booklet that will be issued by brokers to all
              customers who select Optional coverages.

          •   The Owner’s certificate and more than 400 forms and brochures, and 250 web pages
              will be revised to comply with the legislation.

          •   Development of communication and training materials for brokers and ICBC staff and
              updating of procedure manuals. The broker training will consist of more than 80
              seminars conducted throughout the province.

26.       The compensation, general expenses, and FTEs for 2005 to 2007 for the Underwriting
business area are shown in Figure 7.3.2 below.

Figure 7.3.2 Underwriting Operating Expenses and FTEs
                                                              ($ millions)
 Line                                        2005          2006          2006        2007
 No.               Description              Actual       Forecast       Actual     Forecast

      1       Compensation                      $9.0             $9.6       $9.6        $9.8
      2       General Expenses                   2.6              2.7        2.7         2.8
              Total Operating
      3       Expenses                         $11.6            $12.3     $12.3        $12.6

              Full Time Equivalent
      4       Averages (FTEs)                    152             155        151         155

27.       Compensation costs in the Underwriting business area have trended upwards between
2005 and 2007.        The increases relate to the general increases that have been previously
described and minor staffing increases arising from the divisional reorganization.

28.       The general expenses for the business area have also been increasing between 2005
through 2007, which is primarily due to rising postage expenses.

29.       The workload impacts arising from Bill 93 and preparation of the 2007 Rate Design
Application have been significant in the Underwriting business area. Despite this, the business
area has been able to manage its costs and balance this increased workload along with its core
functions.


Insurance Corporation of British Columbia                                                      7.3-7
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C.2       BROKER RELATIONS AND SALES
30.       Broker Relations and Sales encompasses the areas within the Insurance, Marketing and
Underwriting Division responsible for managing the relationship with the ICBC Autoplan
insurance brokers who distribute Basic and Optional insurance to ICBC’s customers. The
volume of sales transactions for Plate Owner Policies processed by brokers in 2005 was 3.08
million, increasing to 3.17 million in 2006 and forecasted to be 3.25 million in 2007. As the
distributors of ICBC’s Basic and Optional insurance products, brokers are the key point of
contact with ICBC’s customers. Brokers provide customers with explanations of ICBC products
and services to ensure the customer has adequate insurance for their individual circumstances.
Brokers are also a point of service for customers wishing to pay government and ICBC debts,
such as motor vehicle related fines, premium debt, claim recoveries, and subrogation. The
ability to pay government, premium, or insurance debt at any of the 900 broker offices
throughout the province is an added convenience for ICBC’s customers.

31.       The compensation, general expenses, and FTEs for 2005 to 2007 for the Broker
Relations and Sales business area are shown in Figure 7.3.3 below.

Figure 7.3.3 Broker Relations and Sales Operating Expenses and FTEs

                                                            ($ millions)
 Line                                        2005        2006          2006        2007
 No.              Description               Actual     Forecast       Actual     Forecast

      1     Compensation                        $5.5         $6.0         $6.3        $6.3
      2     General Expenses                     4.1          4.5          4.2          4.4
            Total Operating
      3     Expenses                            $9.6        $10.5        $10.5       $10.7

            Full Time Equivalent
      4     Averages(FTEs)                        70          73           73           77



32.       Compensation costs increased in the business area from 2005 to the 2007 forecast
primarily due to the general increases that have been previously described and staffing level
increases. In 2006 additional costs were incurred for contractor services for broker related



Insurance Corporation of British Columbia                                                     7.3-8
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

projects. Staffing increases are also planned in the 2007 forecast in order to provide better
service to brokers so that they can better serve ICBC’s customers.

33.     General expenses for the business area have increased between the 2005 actual results
to the 2007 forecast primarily due to increased cost of advertising and corporate promotions,
broker forms, and publications.

C.3     REGULATORY, INSURANCE PLANNING AND BUSINESS SUPPORT
34.     Within the Regulatory, Insurance Planning and Business Support business area, the
Insurance Planning and Business Support Department works to control costs through annual
planning, monthly budgeting, prioritization of activities and resources, and through regular
variance analysis. It also provides strategic and operational support services for the Insurance,
Marketing and Underwriting Division. Business Support is involved in the definition and analysis
of business requirements including acceptance testing and implementation of business changes
related to insurance, vehicle registration, and licensing.

35.     Within this business area, the Regulatory Affairs Department is responsible for providing
corporate strategic advice and services on regulatory processes related to the Commission.
The Regulatory Affairs Department provides the liaison function between ICBC, the
Commission, and intervenors in regulatory proceedings and manages all regulatory
applications, responses, and formal communications between ICBC and the Commission.

36.     Compensation and general expenses for Regulatory, Insurance Planning and Business
Support are shown in Figure 7.3.4 below.




Insurance Corporation of British Columbia                                                    7.3-9
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

Figure 7.3.4 Regulatory, Insurance Planning and Business Support Operating Expenses
and FTEs

                                                             ($ millions)
  Line                                         2005         2006             2006        2007
  No.             Description                 Actual    Forecast            Actual   Forecast


      1     Compensation                        $4.9         $4.9             $5.1        $5.3
      2     General Expenses                     0.2          0.3              0.2         0.2
                  Total Operating
      3                 Expenses                $5.1         $5.2             $5.3        $5.5

            Full Time Equivalent
      4     Averages (FTEs)                       64           61              62          63


37.       Compensation for the business area has been trending upwards between the 2005
actual results to the 2007 forecast. The increase is primarily due to general compensation
increases noted previously.

38.       General expenses between 2005 actual results and 2007 forecast have remained stable.

C.4       STRATEGIC MARKETING
39.       The Strategic Marketing business area evolved from the realignment of several cost
centres that were primarily contained in the 2005 business areas designated as Insurance
Support and Broker Support Services.

40.       The focus of the Strategic Marketing area is to develop and implement customer-
focused marketing plans in support of ICBC’s business strategies.               This includes using
customer research to assist in developing products and services that acknowledge the diverse
needs of ICBC’s customers. The department’s key functions include setting an overall marketing
direction that supports ICBC’s strategies to increase customer product satisfaction and retain its
Optional market share.

41.       Strategic marketing delivers an integrated marketing focus by reviewing and ensuring
the consistency of the customer experience provided at all ICBC facilities and other key



Insurance Corporation of British Columbia                                                        7.3-10
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

customer touchpoints. This ensures the communications to customers are in alignment with
ICBC’s vision, mission, goals and objectives.

42.       Strategic Marketing contains the following areas: Marketing and Broker Services,
Business Intelligence and Customer Research, Marketing Strategy, Marketing Planning, and
Competitive Products. Services provided by the Strategic Marketing business area that support
the Basic insurance line of business include providing marketing expertise for road safety
programs; conducting customer research relating to key business areas such as brokers and
body shops; and providing marketing expertise for developing ICBC forms and brochures that
describe ICBC’s products and services.

43.       Compensation, general expenses, and FTEs for Strategic Marketing are shown in Figure
7.3.5 below.

Figure 7.3.5 – Strategic Marketing Operating Expenses and FTEs
                                                                ($ millions)
 Line                                        2005           2006          2006          2007
 No.              Description               Actual        Forecast       Actual       Forecast


      1     Compensation                        $1.9            $2.0           $2.3        $2.5
      2     General Expenses                     1.8             1.6            2.7         3.7
            Total Operating
      3     Expenses                            $3.7            $3.6           $5.0        $6.2
            Full Time Equivalent
      4     Averages (FTEs)                       26             25             27           29

Compensation from 2005 to 2007 forecast has seen an increase due to general compensation
increases and increased staffing to support the division’s strategic marketing goals.

44.       General expenses for the Strategic Marketing business area increased $1.9 million
between the 2005 and the 2007 forecast.              These increases are primarily attributed to two
marketing campaigns, one of which is related to promoting ICBC’s Optional products and is
allocated 100% to Optional insurance line of business. The other campaign is designed to draw
attention to the relationship between poor driving and insurance rates with the overall message
to convey that improving one’s driving behaviour will reduce claims costs.




Insurance Corporation of British Columbia                                                        7.3-11
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

D       CONCLUSION
45.     Since 2005 the division has experienced both additional cost and work pressures arising
from rate design initiatives, compliance with Bill 93 and growth of the business. Despite the
additional work, the division has maintained control over its general operating expenses with the
most significant increases arising from new marketing campaigns.

46.     The divisional reorganization that occurred in 2006 was designed to help the division
focus and align its efforts on its key goals and objectives including: developing a pricing strategy
that better reflects a customer’s actual risk, differentiating ICBC’s products and services,
developing an integrated marketing approach, effective management of ICBC’s relationship with
brokers, and effective management of the regulatory process.




Insurance Corporation of British Columbia                                                      7.3-12
March 16, 2007
                                APPENDIX 7.3 A

                      DISTRIBUTION COSTS




Insurance Corporation of British Columbia
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission



                                           Table of Contents
A Introduction ................................................................................................................. 7.3 A-1

B Background ................................................................................................................. 7.3 A-1

C Immediate Term: Continuous Improvement to the Current Distribution System . 7.3 A-3
     C.1 Technological Improvements ................................................................................ 7.3 A-4
     C.2 The Next Strategic Accord .................................................................................... 7.3 A-5

D Longer Term: Insurance System and Decal ............................................................. 7.3 A-6
     D.1 Insurance System ................................................................................................. 7.3 A-6
     D.2 Distribution of The Decal ...................................................................................... 7.3 A-7

E Conclusion................................................................................................................... 7.3 A-7




Insurance Corporation of British Columbia                                                                                       7.3 A-i
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A         INTRODUCTION
1.         In the July 2006 Decision, the Commission requested ICBC to
                   explore and evaluate business methods, with or without the
                   involvement of brokers, that have the potential to reduce or at
                   least contain, on a go forward basis, the cost of renewing a Basic
                   Insurance policy.1

2.         ICBC has initiated a review of business methods and is undertaking an evolutionary
strategy of continuous improvement to develop efficiencies and leverage advances in
technology that have the potential to reduce, or at least contain, the cost of renewing a Basic
insurance policy.

3.         Section B provides background to the issue of distribution costs, Section C examines
what ICBC is doing today to contain costs and finally Section D reviews initiatives in progress
with the potential to reduce or at least contain costs.


B          BACKGROUND
4.         In the January 2005 Decision, the Commission requested ICBC: “to provide enough
information for the Commission to determine whether there are acceptable, cost effective
alternatives to renewal through brokers.”2

5.         ICBC evaluated alternative methods for distribution (e.g. direct internet and telephone
sales) and concluded that selling Basic insurance via these channels would result in increased
costs at this time for numerous reasons. The costs to deliver the decal securely, start-up
infrastructure costs, and the assumption of responsibility for errors and omissions all represent
additional costs for ICBC that would exceed what the brokers currently receive in fees.
Evidence of uptake rates in other jurisdictions indicates that economies of scale would not be
achieved in the foreseeable future to make the investment in these costs worthwhile.            In
addition, ICBC would likely have to re-examine the fee schedule for brokers if the mix of
business that they are left with are for more labour intensive vehicle licensing, registration and
insurance transactions. ICBC has concluded at this time that establishing parallel methods of

1
    July 2006 Decision, page 66
2
    January 2005 Decision, page 91

Insurance Corporation of British Columbia                                                   7.3 A-1
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

distribution, which would represent transformational change to the way Basic insurance is
delivered, would result in higher costs and redundancies in the system for minimal benefit for
consumers.

6.      ICBC has also outlined the costs and benefits of the current distribution system through
brokers. ICBC’s broker distribution network, with 900 easily accessible locations throughout
BC, performs the dual function of vehicle licensing agents and auto insurance brokers - one
stop to meet provincial vehicle registration, licensing and Basic insurance requirements.
Brokers provide secure vehicle registration and licensing functions and deliver the decal over
the counter directly to the customer (the decal represents proof of insurance to law enforcement
that the vehicle has been licensed and insured, and helps contribute to BC’s low uninsured
motorist rate). Insurance is a highly complex product for customers to understand and brokers
are able to provide in-person advice on coverage and rating issues to ensure customers do not
place themselves in the position of breaching their insurance. Brokers are available to provide
pre and post sales service to the customer if they have questions about their insurance
purchase, and achieve customer satisfaction scores in the mid 90’s. In addition they act as a
safeguard against fraud through identity verification and also assume the errors and omissions
risk in case there is a dispute with a customer around the extent or type of coverage purchased.

7.      Brokers perform these services for $10.10 per renewal transaction which represents
excellent value to the Basic insurance customer, as outlined previously.            This renewal
transaction fee has recently been increased from $8.60.

8.      Based on ICBC’s evaluation of the broker distribution channel, ICBC concluded that
broker-distributed Basic insurance renewals provide maximum benefit to the vast majority of
ICBC customers with convenient and accessible locations, lower cost of service, professional
advice on proper rating and insurance coverage and an efficient distribution model which
ensures that a valid contract of insurance is created and the customer has immediate delivery of
the documentation required.

9.      In the July 2006 Decision, the Commission Panel acknowledged ICBC’s assertion that
the distribution of Basic insurance through brokers is very cost effective and represents very
good value to consumers. In addition, the Commission Panel stated that it “has no intention at
this point to ‘tell ICBC how to run its business’.” The Commission Panel went on further to state:


Insurance Corporation of British Columbia                                                   7.3 A-2
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

                   The Commission Panel is concerned that the manner in which
                   Basic Insurance is made available to the public, including related
                   costs, is adequate, efficient, just and reasonable and broker
                   payments for renewals of Basic Insurance represent a significant
                   cost to policy holders. In examining this matter the Commission
                   Panel’s key concern is what best serves the public interest.3

10.        The Commission has requested further information from ICBC with respect to controlling
these costs effectively.           ICBC believes that incremental improvements, rather than
transformational change, provide the best opportunity to control costs.                  Incremental or
continuous improvement is a lower risk and lower cost approach to containing costs, whereas
transformational change or making significant investments in technology represent a higher risk
approach that consumers may not embrace and the anticipated benefits will likely take much
longer to achieve.

11.        ICBC proposes a multi-faceted approach to address the Commission Panel’s key
concern:

           •   Continued improvements to the current point of sale system, coupled with leveraging
               technological advancements that have the potential to develop further efficiencies in
               the distribution of Basic insurance without incurring significant costs in infrastructure.

           •   ICBC has initiated a review of its insurance systems to best serve customers in the
               future and will be reviewing the possibility of making further systemic improvements
               to meet customer needs.

           •   ICBC has also initiated a review of how the decal is distributed to brokers and
               whether improvements and potential efficiencies can be attained.


C          IMMEDIATE TERM: CONTINUOUS IMPROVEMENT TO THE
           CURRENT DISTRIBUTION SYSTEM
12.        Devoting resources to improving the current point of sale system and making
technological improvements to the Extranet portal (broker's internet based link with ICBC’s
systems) enables ICBC to more efficiently distribute Basic insurance while reducing broker

3
    July 2006 Decision, page 66

Insurance Corporation of British Columbia                                                          7.3 A-3
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

workload at the back-end of the sales process.            This approach, made primarily through
advances in technology, helps to mitigate upward pressure on broker costs, and has historically
worked to reduce pressure on the level of fees required to compensate brokers. This is the
approach ICBC has taken to ensure customer needs are met and costs continue to be
contained as much as possible. Specifics with respect to this approach are outlined below.

C.1     TECHNOLOGICAL IMPROVEMENTS
13.     In the August 2005 Application, ICBC outlined the development of continuous
efficiencies through the Extranet, such as the on-line posting of insurance manuals and
additional tools to help brokers find information faster and therefore serve customers better.
Since that time, ICBC has implemented further initiatives driven by broker feedback, including:

        •    Improving navigation commands on the point of sale system. ICBC added a tool bar
             to allow brokers faster access to frequently used Extranet tools and manuals. This
             has resulted in faster and more efficient processing of transactions.

        •    Removal of unnecessary steps by reducing signature requirements. The number of
             signatures required from customers has been reduced, resulting in the faster
             processing of transactions.

        •    Enhanced data download capabilities. Brokers may access information about their
             Autoplan business through data download on the Extranet. Several improvements
             have been made to this system to improve productivity for brokers in managing back-
             office functions.

        •    Claim-Rated Scale inquiry. A new system was added to provide brokers with a
             visual tool to explain and demonstrate to a customer why their claims history has
             resulted in their current discount level. This has resulted in better explanations for
             customers and reduced phone calls to ICBC for support.

        •    Kelley Blue Books online. This provides brokers with an on-line pricing guide for
             motorcycles, snowmobiles, and other multi-purpose vehicles. This provides brokers
             with real time information to process a transaction without having to purchase or
             access paper manuals.



Insurance Corporation of British Columbia                                                    7.3 A-4
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

        •    New APV 2500 printing paper. A change in the paper used by brokers to print
             policies has resulted in toner cost savings for brokers.

        •    Multiple territory tool for commercial vehicles. Brokers must charge a premium for
             commercial vehicles equal to the highest premium territory the vehicle operates in.
             Previously, the broker would have to access multiple screens to determine the
             highest premium territory. With this improvement this is done automatically, saving
             time for brokers and customers.

        •    Rate class finder. Brokers can now access the correct rate class for the customer
             without having to scroll through the manual.

14.      While it is difficult to quantify the exact benefits, these initiatives help save customers
and brokers time, make the distribution of Basic insurance more efficient, and helps reduce
workload pressures on broker offices.

15.     ICBC will also be undertaking the automation of special coverage forms as part of the
implementation of the Insurance (Motor Vehicle) Amendment Act, 2003 (Bill 93). In 2007, 20
forms will be converted from handwritten forms to documents that can be completed on-line.
This will be easier for brokers to use at the point of sale, resulting in a more efficient process
that saves time for customers, improves accuracy and speed of processing, and removes the
need for brokers to maintain space to store stock.

16.     ICBC is currently evaluating further improvements to contain costs and improve service
to customers through the point of sale system and the Extranet, and while efficiencies and
meaningful cost reductions are becoming more challenging to find, ICBC will continue to strive
to make the system as cost effective as possible to contain anticipated fee increases to brokers.
Initiatives that are being considered include the further automation of additional forms,
enhancements to make point of sale computer screens more efficient and intuitive, and more
on-line training courses for brokers. It is anticipated that improvements will be made throughout
the 2007 year.

C.2     THE NEXT STRATEGIC ACCORD
17.     ICBC is currently engaged in discussions with the broker associations with respect to
renewing the Strategic Accord. The purpose of the Strategic Accord is to define a strategic

Insurance Corporation of British Columbia                                                     7.3 A-5
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

partnership to effectively position the insurance product delivery system to meet the challenges
of the emerging environment while providing superior cost effective service to the motoring
public of British Columbia. The current Accord expires at the end of 2007. ICBC intends to
discuss efficiencies and service improvements in consultation with brokers during these
discussions, and also intends to discuss how brokers can contribute to the effective
communication and implementation of changes to the Basic insurance rate design. Leveraging
the value the brokers bring to the distribution system will help ensure these changes are
understood by the public and are successfully implemented.

18.     ICBC will be exploring opportunities in technology, rate design changes, and service
improvements in partnership with brokers as part of those negotiations.


D       LONGER TERM: INSURANCE SYSTEM AND DECAL
19.     ICBC has initiated a review for improvements to the insurance system, taking into
account evolving customer needs, rate design, and exploring further efficiencies in the
distribution process. In addition, ICBC has initiated a review of the decal distribution process to
determine if there are more effective and efficient ways to distribute the decal.

D.1     INSURANCE SYSTEM
20.     ICBC intends to examine the way it interacts with its customers and brokers and the
system and document management processes that are undertaken in the distribution of Basic
insurance. The purpose of this work is to ensure ICBC is equipped to meet the needs of
customers in the future in the most cost effective, flexible, and efficient means possible while
utilizing advancements in technology. In 2007 ICBC intends to develop the full extent and
scope of this longer-term initiative.

21.     It is important to note that in the short-term, there continues to be many unknowns about
both on-line customer insurance purchasing behaviours and the development of the Canadian
on-line insurance market. In ICBC’s August 2005 Application, ICBC estimated that uptake for
insurance transactions on-line today would be about 2%, and little additional evidence has been
found since then that would change that estimate.

22.     ICBC has also outlined the risks involved in the development of on-line insurance. The
customer’s risk of inadequate insurance coverage due to misrepresentation, signature

Insurance Corporation of British Columbia                                                    7.3 A-6
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

requirements, and the potential for fraud are challenges that may put the public at risk if not
managed correctly. In addition, customer misunderstandings about the purchase process may
lead to a higher uninsured rate in BC. Another consideration is in regard to rate design change,
which must be carefully managed and communicated to ensure successful implementation.
Rate design changes will add a further element of complexity to the Basic insurance sales
process that would challenge the practicality of on-line distribution. ICBC will continue to monitor
consumer insurance purchasing behaviours and will consider the role of technology as part of
its insurance system initiative and in the context of technological investments in other areas of
the company.

D.2     DISTRIBUTION OF THE DECAL
23.     ICBC is exploring changes to the decal in the process of issuing Basic insurance and
vehicle licensing. The decal and its link to valid insurance has previously been identified as a
primary reason for BC’s low incidence of uninsured motorists, and the role of the broker has
been instrumental in maintaining a cost effective method of distributing the decal.

24.     ICBC is currently undertaking a process review with respect to the distribution of the
decal. The objective of this review is to examine options to make the decal system even more
efficient to distribute.


E       CONCLUSION
25.     ICBC has explored and will continue to evaluate business methods with the potential to
reduce, or at least contain, the cost of renewing a Basic insurance policy. ICBC feels that a
strategy of continuous improvement will best serve the Basic insurance customer and preserve
the current low cost and efficient distribution system. An incremental approach will allow ICBC
to continue to keep costs low, leverage the value of the broker distribution system, and meet
customer needs without the necessity of significant infrastructure investment or compromising
the low uninsured rate that all citizens in BC benefit from. ICBC will also continue to monitor
customer needs and technological improvements and is conducting an examination of future
system requirements to best meet those needs and improve overall efficiency.




Insurance Corporation of British Columbia                                                     7.3 A-7
March 16, 2007
                                APPENDIX 7.3 B

    BASIC INSURANCE INFORMATION
           SHARING EXHIBITS




Insurance Corporation of British Columbia
March 16, 2007
                      ICBC Basic Insurance Information Sharing


The following exhibits provide aggregated Basic insurance data for premiums, sales
volume and loss experience. The data is aggregated by the major lines of business of
third party basic, no-fault accident benefits and underinsured motorist protection
coverages. The exhibits provide the data in various views as noted below:


       Exhibit I, Major Lines of Business Experience - In this exhibit the data is
       presented in the form of major use categories: private passenger, commercial, all-
       terrain vehicles and private passenger motorcycles.

       Exhibit II, Classification – The data is sorted into a more detailed perspective of
       type of use rather than the major groupings above.

       Exhibit III, Territorial – This exhibit provides data based on a territorial view.

       Exhibit IV, Distribution of Accident Year Paid by Policy Year Paid – This is
       provided for both Bodily Injury claims and Property Damage claims.

       Exhibit V, Major Lines of Business by Territory – This exhibit splits the
       territorial exhibits into the major lines of business and meets the requirements
       outlined in paragraph 3.4 of the Negotiated Settlement Agreement.


Appendix A, attached, provides a glossary of terms used in these exhibits.

These exhibits are subject to the limitations inherent in ICBC’s data. For example, this
level of detail is not available for all Basic insurance premiums and claims costs,
therefore the revenues and costs outlined in these exhibits do not correlate precisely to the
figures published in ICBC’s annual report. Appendix B provides a reconciliation of the
aggregated data included in the exhibits to premiums and claims data published in annual
Basic Insurance financial statements.

These exhibits exclude premiums for fleet, garage, driver penalty points and premiums
for certain territories and rate classes as this data is not available on a basis consistent
with the form outlined in these exhibits. Claims and Adjustment Expenses Incurred
included in these exhibits are based on claim file estimates of the likely cost of any
claims that have been reported as at December 31, 2006. These exhibits exclude fleet
related claims, out of province policies, garage policies and temporary operating permits
as data at the level of detail outlined in these exhibits is not available for these claims.

The actuarial exhibits that meet the requirements outlined in paragraph 3.3 of the
Negotiated Settlement Agreement are located within exhibit set C of Chapter 4.
Appendix A

                                       Glossary

The order of the defined terms is as they appear in most exhibits.


Number of Written Vehicles: These are annualized measures of business sales
volumes. The number of written vehicles is annualized by determining the net policy
terms portion of a 12 month period, e.g. a 6 month policy is 0.5 written vehicles.

Number of Earned Vehicles: These are annualized measures of risk exposure. Policies
are annualized by determining which portions of the policy occur in a given year. For a
12 month policy written July 1, 0.5 vehicles are earned in the first year and 0.5 are earned
after January 1 of the next year.

The difference between written and earned is the difference between sales activity and
performance of the contract (which could include no activity if there are no claims).
When written is greater than earned, the company is growing.

Written Premiums: This is the same concept as Number of Written Vehicles, but counts
net dollars of premiums written.

Earned Premiums: This is the same concept as Number of Earned Vehicles, but counts
net dollars of premiums earned.

Number of Claims: The number of claims reported by coverage.

Claims and Adjustment Expenses Incurred: This is the claims file estimate of the
likely costs of any claims that have been recorded.

Claims Frequency per 100 Earned Vehicles: This represents the rate of claims. It is
the ratio of Number of Claims to Number of Earned Vehicles.

Average Cost Per Claim: This measures the severity of claims being made. It is the
ratio of Claims and Adjustment Expenses Incurred to Number of Claims.

Average Earned Premium: This is the average amount available to pay claims in this
year and for this coverage. It is the ratio of earned premiums to earned vehicles.

Claim Cost per Earned Vehicle: This is the amount of money required for each
earned vehicle, just to pay for claims. It is the ratio of Claims and Adjustment Expenses
Incurred to Number of Earned Vehicles.

Recorded Loss Ratio: This is the portion of every premium dollar that has been used to
pay for claims. It is calculated as the ratio of Claims and Adjustment Expenses Incurred
to Earned Premiums.
APPENDIX B

                                                                     BASIC INSURANCE TOTAL


PREMIUMS WRITTEN
                                                                                               2002             2003             2004              2005             2006
EXHIBITS TOTAL                                                                        1,501,144,696    1,560,633,692    1,606,594,578     1,646,890,033    1,775,003,218

OTHER BASIC INSURANCE
  TEMPORARY OPERATING PERMITS AND OUT OF PROVINCE POLICIES                               44,130,780       49,673,306       50,404,859        51,363,629       56,954,836
  GARAGE AND FLEET POLICIES                                                              33,947,000       37,251,000       40,724,975        48,341,002       43,898,512
  SHORT TERM SURCHARGES & CANCELLATION FEES                                              10,882,000       11,372,000        8,981,360        11,600,877       12,438,841
  DRIVER'S PENALTY POINTS                                                                21,456,000       15,560,000       12,291,692        15,156,176       17,465,610
  CREDIT CARD FEES                                                                       (3,900,000)      (6,471,000)      (7,866,232)       (9,162,350)     (10,610,824)
  UNPROCESSED TRANSACTIONS AND TIMING DIFFERENCES                                        (3,135,476)      (2,682,998)         571,768        (2,529,668)       1,534,549
  OTHER BASIC INSURANCE                                                                 103,380,304      104,702,308      105,108,422       114,769,666      121,681,524
                                                                                        103,380,304      104,702,308      105,108,422       114,769,666      121,681,524
BASIC INSURANCE - YEAR END FINANCIAL STATEMENTS                                       1,604,525,000    1,665,336,000    1,711,703,000     1,761,659,699    1,896,684,742
                                                                                                -                -                -                 -                -

PREMIUMS EARNED
                                                                                               2002             2003             2004              2005             2006
EXHIBITS TOTAL                                                                        1,443,768,244    1,529,637,626    1,587,257,907     1,630,118,217    1,702,906,825

OTHER BASIC INSURANCE
  TEMPORARY OPERATING PERMITS AND OUT OF PROVINCE POLICIES                               42,951,927       45,457,642       49,081,909        49,475,010       52,832,781
  GARAGE AND FLEET POLICIES                                                              26,832,000       31,731,000       39,765,917        48,166,321       42,809,644
  SHORT TERM SURCHARGES & CANCELLATION FEES                                              10,974,000       11,564,000       11,662,338        11,545,271       12,393,838
  DRIVER'S PENALTY POINTS                                                                21,876,000       18,228,000       13,432,112        13,753,669       16,546,412
  CREDIT CARD FEES                                                                       (3,938,000)      (6,579,000)      (7,935,108)       (9,118,760)     (10,572,434)
  UNPROCESSED TRANSACTIONS AND TIMING DIFFERENCES                                           153,829         (151,268)        (951,075)       (7,179,500)       7,560,122
  OTHER BASIC INSURANCE                                                                  98,849,756      100,250,374      105,056,093       106,642,011      121,570,363

BASIC INSURANCE - YEAR END FINANCIAL STATEMENTS                                       1,542,618,000    1,629,888,000    1,692,314,000     1,736,760,228    1,824,477,188
                                                                                                -                -                -                 -                -

CLAIMS AND ADJUSTMENT EXPENSES INCURRED
                                                                                               2002             2003             2004              2005             2006
EXHIBITS TOTAL                                                                        1,233,791,332    1,260,403,918    1,239,160,215     1,147,899,139      832,292,358

OTHER BASIC INSURANCE
  GARAGE AND FLEET POLICIES                                                              34,950,999       33,396,932       36,404,496        32,290,810       21,965,846
  TEMPORARY OPERATING PERMITS AND OUT OF PROVINCE POLICIES                               64,112,990       60,546,786       64,559,313        53,201,310       34,792,253
  INCURRED BUT NOT REPORTED CLAIM AND CLAIMS DEVELOPMENT                                584,803,815      595,016,680      652,749,421       771,499,579      812,103,350
  INCREASE IN RECORDED TO DECEMBER 2006                                                (559,681,136)    (564,426,317)    (508,758,445)     (353,449,838)      (6,818,806)
  OTHER BASIC INSURANCE                                                                 124,186,668      124,534,082      244,954,785       503,541,861      862,042,642
                                                                                        124,186,668      124,534,082      244,954,785       503,541,861      862,042,642
BASIC INSURANCE - YEAR END FINANCIAL STATEMENTS                                       1,357,978,000    1,384,938,000    1,484,115,000     1,651,441,000    1,694,335,000




These exhibits are produced from a management information system in ICBC’s data warehouse created to provide drilldowns not readily available in our accounting
and actuarial systems of record. This system is sourced from the same operational data as the systems of record. However minor discrepancies exist primarily due to
timing differences and methods of consolidation. Historically this discrepancy has in total been under one percent. The management information system has been
selected as the source since the systems of record do not contain the classifications of vehicle use required for these exhibits.




Appendix B
                                                                                                        EXHIBIT I - MAJOR LINES OF BUSINESS EXPERIENCE

                                                               PRIVATE PASSENGER AUTOMOBILE

                                                                  PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                             CLAIM                       CLAIM
                                                                                         CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                       ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED              WRITTEN          EARNED   NUMBER           EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES             PREMIUMS        PREMIUMS OF CLAIMS          INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002            2,180,223       2,159,559   1,152,234,192   1,120,094,737     207,535     970,407,161         9.61     4,676       519     449      87%
2003            2,220,977       2,197,349   1,196,607,750   1,173,373,516     202,359     993,821,792         9.21     4,911       534     452      85%
2004            2,276,654       2,251,534   1,229,091,374   1,214,287,552     203,667     966,318,050         9.05     4,745       539     429      80%
2005            2,332,607       2,305,250   1,256,624,696   1,245,473,448     205,110     872,837,582         8.90     4,255       540     379      70%
2006            2,385,202       2,364,357   1,351,221,768   1,295,008,552     199,863     646,881,604         8.45     3,237       548     274      50%
TOTAL          11,395,663      11,278,050   6,185,779,780   6,048,237,805   1,018,534   4,450,266,189         9.03     4,369       536     395      74%

THIRD PARTY TOTAL

2002            2,180,223       2,159,559   1,386,068,716   1,353,941,102     207,535   1,175,592,032         9.61     5,665       627     544      87%
2003            2,220,977       2,197,349   1,431,418,978   1,407,271,477     202,359   1,168,007,684         9.21     5,772       640     532      83%
2004            2,276,654       2,251,534   1,469,524,153   1,452,434,811     203,667   1,153,076,860         9.05     5,662       645     512      79%
2005            2,332,607       2,305,250   1,504,373,776   1,489,156,534     205,110   1,038,770,701         8.90     5,064       646     451      70%
2006            2,385,202       2,364,357   1,606,689,690   1,547,839,873     199,863     747,752,538         8.45     3,741       655     316      48%
TOTAL          11,395,663      11,278,050   7,398,075,313   7,250,643,798   1,018,534   5,283,199,816         9.03     5,187       643     468      73%

ACCIDENT BENEFITS

2002            2,180,223       2,159,559    140,121,473     122,249,085      53,393     101,562,628          2.47     1,902        57      47      83%
2003            2,220,977       2,197,349    146,402,198     142,903,177      53,903     105,590,320          2.45     1,959        65      48      74%
2004            2,276,654       2,251,534    150,627,196     148,697,012      52,931     110,840,605          2.35     2,094        66      49      75%
2005            2,332,607       2,305,250    154,053,080     152,392,102      52,833     105,599,024          2.29     1,999        66      46      69%
2006            2,385,202       2,364,357    165,842,074     159,974,963      50,257      76,546,256          2.13     1,523        68      32      48%
TOTAL          11,395,663      11,278,050    757,046,021     726,216,340     263,317     500,138,833          2.33     1,899        64      44      69%

UNDERINSURED MOTORIST

2002            2,180,223       2,159,543     42,966,941      41,540,793         120      15,083,151          0.01   125,693        19       7      36%
2003            2,220,977       2,197,346     44,347,241      43,620,494         122      20,863,815          0.01   171,015        20       9      48%
2004            2,276,654       2,251,533     45,457,357      44,964,253         108      25,355,100          0.00   234,769        20      11      56%
2005            2,332,607       2,305,250     46,497,640      45,985,785          85      25,902,229          0.00   304,732        20      11      56%
2006            2,385,202       2,364,357     50,668,210      48,513,086          50      13,357,460          0.00   267,149        21       6      28%
TOTAL          11,395,663      11,278,029    229,937,389     224,624,410         485     100,561,754          0.00   207,344        20       9      45%



                                                                                                                                                           2BI - 1
                                                                                                  EXHIBIT I - MAJOR LINES OF BUSINESS EXPERIENCE

                                                                       COMMERCIAL

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                       CLAIM
                                                                                   CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                 ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED            WRITTEN        EARNED   NUMBER         EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES           PREMIUMS      PREMIUMS OF CLAIMS        INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              439,742        438,887   135,081,849   130,503,098     22,640     125,781,234         5.16     5,556       297     287      96%
2003              444,123        441,337   140,692,001   137,604,985     21,868     118,199,241         4.95     5,405       312     268      86%
2004              461,515        454,654   145,606,727   144,019,004     22,337     110,879,135         4.91     4,964       317     244      77%
2005              484,274        473,422   151,252,963   148,461,394     23,221     115,169,897         4.90     4,960       314     243      78%
2006              508,690        497,738   163,893,575   157,194,209     22,277      81,119,732         4.48     3,641       316     163      52%
TOTAL           2,338,345      2,306,039   736,527,115   717,782,690    112,343     551,149,238         4.87     4,906       311     239      77%

THIRD PARTY TOTAL

2002              439,742        438,887   156,076,926   150,946,364     22,640     143,819,242         5.16     6,352       344     328      95%
2003              444,123        441,337   165,519,554   160,622,097     21,868     129,808,150         4.95     5,936       364     294      81%
2004              461,515        454,654   171,567,910   169,474,697     22,337     125,734,118         4.91     5,629       373     277      74%
2005              484,274        473,422   179,024,792   175,425,787     23,221     125,409,823         4.90     5,401       371     265      71%
2006              508,690        497,738   193,672,773   186,263,704     22,277      84,960,189         4.48     3,814       374     171      46%
TOTAL           2,338,345      2,306,039   865,861,955   842,732,649    112,343     609,731,521         4.87     5,427       365     264      72%

ACCIDENT BENEFITS

2002              439,742        438,887    10,239,081     9,227,841      2,907       5,486,655         0.66     1,887        21      13      59%
2003              444,123        441,337    10,692,881    10,439,036      2,871       5,347,420         0.65     1,863        24      12      51%
2004              461,515        454,654    11,021,352    10,921,918      2,689       4,574,460         0.59     1,701        24      10      42%
2005              484,274        473,422    11,381,166    11,211,879      2,783       5,219,659         0.59     1,876        24      11      47%
2006              508,690        497,738    12,320,665    11,846,711      2,499       2,861,005         0.50     1,145        24       6      24%
TOTAL           2,338,345      2,306,039    55,655,145    53,647,385     13,749      23,489,198         0.60     1,708        23      10      44%

UNDERINSURED MOTORIST

2002              430,246        429,367     3,674,703     3,604,337         7          622,935         0.00    88,991         8         1    17%
2003              434,726        431,900     3,910,246     3,790,495         2          425,000         0.00   212,500         9         1    11%
2004              451,863        445,054     4,020,881     3,977,434         5          400,000         0.00    80,000         9         1    10%
2005              474,233        463,480     4,157,447     4,091,799         4          640,000         0.00   160,000         9         1    16%
2006              498,392        487,470     4,439,423     4,306,756        -               -            -         N/A         9     -         0%
TOTAL           2,289,461      2,257,271    20,202,700    19,770,821         18       2,087,935         0.00   115,996         9         1    11%



                                                                                                                                                     2BI - 2
                                                                                          EXHIBIT I - MAJOR LINES OF BUSINESS EXPERIENCE

                                                               ALL TERRAIN

                                                     PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                             CLAIMS AND   FREQUENCY                         COST
              NUMBER OF NUMBER OF                                           ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED       WRITTEN      EARNED   NUMBER          EXPENSES       EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES      PREMIUMS    PREMIUMS OF CLAIMS         INCURRED      VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                1,389      1,351      85,771      84,100           1          1,873         0.07     1,873        62         1     2%
2003                1,585      1,534      84,323      85,284       -                -            -         N/A        56     -         0%
2004                2,020      1,857      85,174      85,876         3              437         0.16       146        46         0     1%
2005                2,715      2,361      99,234      92,471        12            8,717         0.51       726        39         4     9%
2006                2,742      2,682     102,678      98,627         8           11,635         0.30     1,454        37         4    12%
TOTAL              10,451      9,785     457,180     446,358        24           22,662         0.25       944        46         2     5%

THIRD PARTY TOTAL

2002                1,389      1,351     128,045     125,461           1          1,873         0.07     1,873        93         1     1%
2003                1,585      1,534     131,703     131,379       -                -            -         N/A        86     -         0%
2004                2,020      1,857     137,174     135,418            3           437         0.16       146        73         0     0%
2005                2,715      2,361     165,546     151,554           12         8,717         0.51       726        64         4     6%
2006                2,742      2,682     166,545     161,475            8        11,635         0.30     1,454        60         4     7%
TOTAL              10,451      9,785     729,013     705,286           24        22,662         0.25       944        72         2     3%

ACCIDENT BENEFITS

2002                1,389      1,351      63,270      58,091       -                -            -        N/A         43     -         0%
2003                1,585      1,534      69,306      67,539       -                -            -        N/A         44     -         0%
2004                2,020      1,857      69,009      69,908       -                -            -        N/A         38     -         0%
2005                2,715      2,361      80,314      74,991       -                -            -        N/A         32     -         0%
2006                2,742      2,682      83,086      79,861       -                -            -        N/A         30     -         0%
TOTAL              10,451      9,785     364,985     350,390       -                -            -        N/A         36     -         0%

UNDERINSURED MOTORIST

2002                1,389      1,351      19,752      19,192       -                -            -        N/A         14     -         0%
2003                1,585      1,534      19,969      19,805       -                -            -        N/A         13     -         0%
2004                2,020      1,857      19,845      20,290       -                -            -        N/A         11     -         0%
2005                2,715      2,361      23,086      21,347       -                -            -        N/A          9     -         0%
2006                2,742      2,682      24,162      23,036       -                -            -        N/A          9     -         0%
TOTAL              10,451      9,785     106,814     103,670       -                -            -        N/A         11     -         0%



                                                                                                                                             2BI - 3
                                                                                              EXHIBIT I - MAJOR LINES OF BUSINESS EXPERIENCE

                                                                   MOTORCYCLES

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                   CLAIM                       CLAIM
                                                                               CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                             ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN       EARNED   NUMBER         EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS     PREMIUMS OF CLAIMS        INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               28,851       28,750   10,920,904   10,868,117      1,024       6,130,879         3.56     5,987       378     213      56%
2003               31,003       30,751   11,520,508   11,491,944      1,099       6,655,125         3.57     6,056       374     216      58%
2004               35,720       34,985   13,345,461   13,097,286      1,153       6,957,111         3.30     6,034       374     199      53%
2005               39,760       38,731   14,743,472   14,473,217      1,200       7,078,837         3.10     5,899       374     183      49%
2006               43,880       43,294   17,132,538   16,773,966      1,307       4,715,651         3.02     3,608       387     109      28%
TOTAL             179,214      176,512   67,662,883   66,704,531      5,783      31,537,602         3.28     5,454       378     179      47%

THIRD PARTY TOTAL

2002               28,851       28,750   12,650,373   12,590,958      1,024       8,425,850         3.56     8,228       438     293      67%
2003               31,003       30,751   13,324,584   13,291,789      1,099       8,556,450         3.57     7,786       432     278      64%
2004               35,720       34,985   15,439,391   15,149,355      1,153       8,809,134         3.30     7,640       433     252      58%
2005               39,760       38,731   17,090,548   16,775,928      1,200       9,663,906         3.10     8,053       433     250      58%
2006               43,880       43,294   19,771,374   19,371,794      1,307       5,461,209         3.02     4,178       447     126      28%
TOTAL             179,214      176,512   78,276,270   77,179,825      5,783      40,916,550         3.28     7,075       437     232      53%

ACCIDENT BENEFITS

2002               28,851       28,750    5,134,850    4,925,669        917       7,792,540         3.19     8,498       171     271     158%
2003               31,003       30,751    5,655,426    5,608,314      1,033       6,806,739         3.36     6,589       182     221     121%
2004               35,720       34,985    6,524,034    6,405,853      1,029       9,814,857         2.94     9,538       183     281     153%
2005               39,760       38,731    7,171,303    7,056,437      1,098      10,273,699         2.83     9,357       182     265     146%
2006               43,880       43,294    8,329,804    8,164,620      1,151       6,766,016         2.66     5,878       189     156      83%
TOTAL             179,214      176,512   32,815,417   32,160,893      5,228      41,453,851         2.96     7,929       182     235     129%

UNDERINSURED MOTORIST

2002               28,851       28,750      601,910      593,184        12          922,275         0.04    76,856        21      32     155%
2003               31,003       30,751      631,843      633,036        16        2,694,466         0.05   168,404        21      88     426%
2004               35,720       34,985      726,168      711,523        13        4,020,461         0.04   309,266        20     115     565%
2005               39,760       38,731      805,632      783,346        13        5,169,496         0.03   397,654        20     133     660%
2006               43,880       43,294      945,235      922,438         1           33,000         0.00    33,000        21       1       4%
TOTAL             179,214      176,511    3,710,788    3,643,527        55       12,839,697         0.03   233,449        21      73     352%



                                                                                                                                                 2BI - 4
                                                                                                                            EXHIBIT II - CLASSIFICATION

                                                                   CLASS 01 - PLEASURE USE

                                                                 PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                          CLAIM                       CLAIM
                                                                                      CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                    ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED             WRITTEN          EARNED   NUMBER         EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES            PREMIUMS        PREMIUMS OF CLAIMS        INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              881,654        865,672     415,251,328     401,229,415    73,694     345,938,272         8.51     4,694       463     400        86%
2003              908,100        893,307     428,123,683     421,030,541    73,608     367,125,431         8.24     4,988       471     411        87%
2004              933,568        921,537     442,516,006     435,794,783    74,965     358,485,650         8.13     4,782       473     389        82%
2005              957,382        945,598     453,795,349     448,986,252    75,808     320,920,897         8.02     4,233       475     339        71%
2006              977,647        969,160     488,580,179     468,046,938    73,192     234,061,537         7.55     3,198       483     242        50%
TOTAL           4,658,351      4,595,274   2,228,266,545   2,175,087,929   371,267   1,626,531,787         8.08     4,381       473     354        75%

THIRD PARTY TOTAL

2002              881,654        865,672     497,585,067     482,863,918    73,694     405,411,749         8.51     5,501       558     468        84%
2003              908,100        893,307     510,761,913     503,245,930    73,608     430,984,548         8.24     5,855       563     482        86%
2004              933,568        921,537     527,940,654     520,005,180    74,965     415,664,746         8.13     5,545       564     451        80%
2005              957,382        945,598     542,195,328     535,732,992    75,808     380,009,303         8.02     5,013       567     402        71%
2006              977,647        969,160     579,682,533     558,182,222    73,192     271,881,666         7.55     3,715       576     281        49%
TOTAL           4,658,351      4,595,274   2,658,165,495   2,600,030,243   371,267   1,903,952,012         8.08     5,128       566     414        73%

ACCIDENT BENEFITS

2002              881,654        865,672     50,548,170      44,570,738     16,836     33,548,602          1.94     1,993        51      39        75%
2003              908,100        893,307     53,474,155      51,914,944     17,291     35,513,684          1.94     2,054        58      40        68%
2004              933,568        921,537     55,244,404      54,410,559     17,289     40,558,192          1.88     2,346        59      44        75%
2005              957,382        945,598     56,619,430      55,942,477     17,416     34,800,118          1.84     1,998        59      37        62%
2006              977,647        969,160     60,787,518      58,730,259     16,205     28,762,937          1.67     1,775        61      30        49%
TOTAL           4,658,351      4,595,274    276,673,677     265,568,978     85,037    173,183,532          1.85     2,037        58      38        65%

UNDERINSURED MOTORIST

2002              881,654        865,665     16,268,578      15,644,579        54       5,324,508          0.01    98,602        18       6        34%
2003              908,100        893,305     17,121,902      16,689,656        42       5,381,235          0.00   128,125        19       6        32%
2004              933,568        921,537     17,604,844      17,378,506        42       8,677,941          0.00   206,618        19       9        50%
2005              957,382        945,598     18,031,444      17,816,810        24       4,205,082          0.00   175,212        19       4        24%
2006              977,647        969,160     19,446,759      18,725,892        20       4,665,467          0.00   233,273        19       5        25%
TOTAL           4,658,351      4,595,265     88,473,527      86,255,443       182      28,254,234          0.00   155,243        19       6        33%



                                                                                                                                                          2BII - 1
                                                                                                                            EXHIBIT II - CLASSIFICATION

                                                                 CLASS 02 - COMMUTE < 15 KM

                                                                 PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                          CLAIM                       CLAIM
                                                                                      CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                    ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED             WRITTEN          EARNED   NUMBER         EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES            PREMIUMS        PREMIUMS OF CLAIMS        INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              705,112        710,340     402,028,159     391,402,995    75,560     350,426,703        10.64     4,638       551     493        90%
2003              680,131        692,810     396,755,982     400,042,435    68,799     326,898,210         9.93     4,751       577     472        82%
2004              656,935        669,484     377,991,236     387,713,137    62,790     293,578,479         9.38     4,676       579     439        76%
2005              639,669        648,354     362,298,453     370,707,216    57,747     241,362,047         8.91     4,180       572     372        65%
2006              631,095        636,188     372,367,285     364,246,194    53,617     173,910,951         8.43     3,244       573     273        48%
TOTAL           3,312,943      3,357,177   1,911,441,115   1,914,111,978   318,513   1,386,176,390         9.49     4,352       570     413        72%

THIRD PARTY TOTAL

2002              705,112        710,340     483,413,719     472,958,122    75,560     429,385,874        10.64     5,683       666     604        91%
2003              680,131        692,810     473,234,229     479,104,375    68,799     382,003,975         9.93     5,552       692     551        80%
2004              656,935        669,484     450,197,192     462,194,023    62,790     362,394,502         9.38     5,772       690     541        78%
2005              639,669        648,354     431,588,161     441,303,748    57,747     295,529,866         8.91     5,118       681     456        67%
2006              631,095        636,188     440,546,607     433,217,493    53,617     198,399,521         8.43     3,700       681     312        46%
TOTAL           3,312,943      3,357,177   2,278,979,908   2,288,777,762   318,513   1,667,713,738         9.49     5,236       682     497        73%

ACCIDENT BENEFITS

2002              705,112        710,340     49,486,313      43,234,560     21,073     41,930,545          2.97     1,990        61      59        97%
2003              680,131        692,810     48,273,573      48,815,517     19,645     38,752,616          2.84     1,973        70      56        79%
2004              656,935        669,484     46,523,210      47,459,716     17,402     36,418,729          2.60     2,093        71      54        77%
2005              639,669        648,354     44,824,262      45,661,877     15,792     31,689,736          2.44     2,007        70      49        69%
2006              631,095        636,188     46,368,698      45,541,060     14,342     21,632,198          2.25     1,508        72      34        48%
TOTAL           3,312,943      3,357,177    235,476,056     230,712,729     88,254    170,423,823          2.63     1,931        69      51        74%

UNDERINSURED MOTORIST

2002              705,112        710,336     14,864,724      14,562,282        39       5,530,857          0.01   141,817        21       8        38%
2003              680,131        692,809     14,441,124      14,661,304        44      11,107,627          0.01   252,446        21      16        76%
2004              656,935        669,484     13,932,300      14,209,229        40      10,921,666          0.01   273,042        21      16        77%
2005              639,669        648,354     13,527,337      13,728,412        21       7,151,917          0.00   340,567        21      11        52%
2006              631,095        636,188     14,296,472      13,869,175        13       4,486,633          0.00   345,126        22       7        32%
TOTAL           3,312,943      3,357,171     71,061,957      71,030,401       157      39,198,700          0.00   249,673        21      12        55%



                                                                                                                                                          2BII - 2
                                                                                                                            EXHIBIT II - CLASSIFICATION

                                                                 CLASS 03 - COMMUTE >= 15 KM

                                                                 PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                          CLAIM                       CLAIM
                                                                                      CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                    ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED             WRITTEN          EARNED   NUMBER         EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES            PREMIUMS        PREMIUMS OF CLAIMS        INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              285,598        279,166     174,202,724     168,941,647    29,539    148,286,434         10.58     5,020       605     531        88%
2003              319,581        301,089     204,737,819     188,526,760    31,933    166,496,520         10.61     5,214       626     553        88%
2004              363,276        342,171     236,309,957     221,001,335    37,264    187,306,500         10.89     5,026       646     547        85%
2005              401,071        383,171     262,259,694     250,453,220    42,082    193,115,799         10.98     4,589       654     504        77%
2006              429,008        417,002     296,064,351     277,795,621    44,114    148,954,800         10.58     3,377       666     357        54%
TOTAL           1,798,533      1,722,599   1,173,574,545   1,106,718,582   184,932    844,160,053         10.74     4,565       642     490        76%

THIRD PARTY TOTAL

2002              285,598        279,166     209,628,674     204,344,141    29,539     186,702,485        10.58     6,321       732     669        91%
2003              319,581        301,089     245,171,722     226,178,598    31,933     196,800,214        10.61     6,163       751     654        87%
2004              363,276        342,171     283,320,656     264,857,899    37,264     228,161,343        10.89     6,123       774     667        86%
2005              401,071        383,171     314,925,454     300,370,709    42,082     230,436,654        10.98     5,476       784     601        77%
2006              429,008        417,002     352,924,377     332,920,152    44,114     168,409,299        10.58     3,818       798     404        51%
TOTAL           1,798,533      1,722,599   1,405,970,883   1,328,671,500   184,932   1,010,509,995        10.74     5,464       771     587        76%

ACCIDENT BENEFITS

2002              285,598        279,166     20,692,196      17,580,633      9,048     17,082,319          3.24     1,888        63      61        97%
2003              319,581        301,089     24,418,414      22,408,144     10,386     20,711,926          3.45     1,994        74      69        92%
2004              363,276        342,171     28,016,213      26,271,559     11,852     23,880,324          3.46     2,015        77      70        91%
2005              401,071        383,171     31,034,805      29,609,798     12,914     27,762,136          3.37     2,150        77      72        94%
2006              429,008        417,002     35,104,318      33,114,374     13,175     18,252,320          3.16     1,385        79      44        55%
TOTAL           1,798,533      1,722,599    139,265,946     128,984,508     57,375    107,689,023          3.33     1,877        75      63        83%

UNDERINSURED MOTORIST

2002              285,598        279,164      5,904,769       5,612,063        16       2,826,425          0.01   176,652        20      10        50%
2003              319,581        301,089      6,725,450       6,281,989        18       2,154,311          0.01   119,684        21       7        34%
2004              363,276        342,171      7,683,014       7,222,665        17       2,279,668          0.00   134,098        21       7        32%
2005              401,071        383,171      8,487,185       8,107,827        25       9,822,229          0.01   392,889        21      26       121%
2006              429,008        417,002      9,735,513       9,104,119        11       2,350,359          0.00   213,669        22       6        26%
TOTAL           1,798,533      1,722,597     38,535,931      36,328,661        87      19,432,993          0.01   223,368        21      11        53%



                                                                                                                                                          2BII - 3
                                                                                                                         EXHIBIT II - CLASSIFICATION

                                                                 CLASS 04 - BUSINESS USE

                                                               PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                       CLAIM
                                                                                    CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                  ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED             WRITTEN         EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES            PREMIUMS       PREMIUMS OF CLAIMS       INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              271,615        268,514    151,793,931    149,533,681    27,569    120,942,716        10.27     4,387       557     450        81%
2003              276,844        273,983    158,343,902    155,047,539    26,967    129,582,382         9.84     4,805       566     473        84%
2004              285,695        281,498    163,589,641    161,091,330    27,598    122,442,869         9.80     4,437       572     435        76%
2005              297,174        290,898    169,701,233    166,706,084    28,446    113,778,652         9.78     4,000       573     391        68%
2006              308,770        304,101    185,095,356    176,056,509    28,087     87,760,702         9.24     3,125       579     289        50%
TOTAL           1,440,099      1,418,993    828,524,063    808,435,144   138,667    574,507,321         9.77     4,143       570     405        71%

THIRD PARTY TOTAL

2002              271,615        268,514     184,374,531   182,650,050    27,569    149,047,121        10.27     5,406       680     555        82%
2003              276,844        273,983     191,547,456   187,953,526    26,967    154,154,811         9.84     5,716       686     563        82%
2004              285,695        281,498     197,310,463   194,616,720    27,598    139,367,354         9.80     5,050       691     495        72%
2005              297,174        290,898     205,017,207   201,059,030    28,446    128,725,441         9.78     4,525       691     443        64%
2006              308,770        304,101     222,260,985   212,531,805    28,087    106,865,898         9.24     3,805       699     351        50%
TOTAL           1,440,099      1,418,993   1,000,510,642   978,811,132   138,667    678,160,624         9.77     4,891       690     478        69%

ACCIDENT BENEFITS

2002              271,615        268,514     18,158,330     15,708,561     6,324      8,764,690         2.36     1,386        59      33        56%
2003              276,844        273,983     19,062,193     18,575,299     6,457     10,339,986         2.36     1,601        68      38        56%
2004              285,695        281,498     19,651,177     19,367,281     6,279      9,464,764         2.23     1,507        69      34        49%
2005              297,174        290,898     20,393,224     19,991,292     6,631     10,995,150         2.28     1,658        69      38        55%
2006              308,770        304,101     22,314,061     21,357,625     6,448      7,528,022         2.12     1,167        70      25        35%
TOTAL           1,440,099      1,418,993     99,578,985     95,000,058    32,139     47,092,612         2.26     1,465        67      33        50%

UNDERINSURED MOTORIST

2002              271,615        268,511      5,289,999      5,097,695       11       1,401,360         0.00   127,396        19       5        27%
2003              276,844        273,983      5,405,873      5,341,490       16       1,970,539         0.01   123,159        19       7        37%
2004              285,695        281,497      5,570,703      5,492,829        9       3,475,825         0.00   386,203        20      12        63%
2005              297,174        290,897      5,785,011      5,667,162       14       3,908,000         0.00   279,143        19      13        69%
2006              308,770        304,101      6,453,480      6,109,084        3       1,015,000         0.00   338,333        20       3        17%
TOTAL           1,440,099      1,418,989     28,505,066     27,708,261       53      11,770,724         0.00   222,089        20       8        42%



                                                                                                                                                       2BII - 4
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                                        CLASS 05 - U-DRIVE VEHICLES

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                4,395       4,170    4,836,561    4,484,206    1,236      2,633,906        29.64    2,131       1,075    632        59%
2003                4,433       4,471    4,300,076    4,696,438    1,169      3,434,527        26.15    2,938       1,050    768        73%
2004                4,510       4,622    4,432,924    4,471,402    1,136      2,891,248        24.58    2,545         967    626        65%
2005                4,671       4,773    4,382,106    4,578,731    1,173      2,531,193        24.58    2,158         959    530        55%
2006                4,706       4,854    4,668,704    4,667,335    1,085      3,229,325        22.35    2,976         962    665        69%
TOTAL              22,715      22,889   22,620,371   22,898,111    5,799     14,720,199        25.34    2,538       1,000    643        64%

THIRD PARTY TOTAL

2002                4,395       4,170    5,697,145    5,279,864    1,236      3,293,728        29.64    2,665       1,266    790        62%
2003                4,433       4,471    5,605,008    5,772,449    1,169      4,430,346        26.15    3,790       1,291    991        77%
2004                4,510       4,622    5,702,351    5,768,686    1,136      2,891,248        24.58    2,545       1,248    626        50%
2005                4,671       4,773    5,705,338    5,950,176    1,173      3,796,552        24.58    3,237       1,247    795        64%
2006                4,706       4,854    6,081,163    6,067,936    1,085      4,196,157        22.35    3,867       1,250    865        69%
TOTAL              22,715      22,889   28,791,005   28,839,111    5,799     18,608,031        25.34    3,209       1,260    813        65%

ACCIDENT BENEFITS

2002                4,395       4,170      276,568      230,301       96        117,779         2.30    1,227         55      28        51%
2003                4,433       4,471      284,123      289,482       87        201,696         1.95    2,318         65      45        70%
2004                4,510       4,622      301,868      301,498       83        238,505         1.80    2,874         65      52        79%
2005                4,671       4,773      302,197      316,264       97         92,376         2.03      952         66      19        29%
2006                4,706       4,854      319,243      319,814       87        562,747         1.79    6,468         66     116       176%
TOTAL              22,715      22,889    1,483,999    1,457,359      450      1,213,103         1.97    2,696         64      53        83%

UNDERINSURED MOTORIST

2002                4,395       4,170      75,904       69,482       -              -            -        N/A         17      -          0%
2003                4,433       4,471      78,085       79,163       -              -            -        N/A         18      -          0%
2004                4,510       4,622      80,727       81,012       -              -            -        N/A         18      -          0%
2005                4,671       4,773      80,606       83,676       -              -            -        N/A         18      -          0%
2006                4,706       4,854      83,237       84,046       -              -            -        N/A         17      -          0%
TOTAL              22,715      22,888     398,559      397,378       -              -            -        N/A         17      -          0%



                                                                                                                                               2BII - 5
                                                                                                             EXHIBIT II - CLASSIFICATION

                                                         CLASS 06 - HEARSE

                                                   PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                           CLAIM                       CLAIM
                                                                         CLAIMS AND   FREQUENCY                         COST
              NUMBER OF NUMBER OF                                       ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED     WRITTEN      EARNED   NUMBER        EXPENSES       EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES    PREMIUMS    PREMIUMS OF CLAIMS       INCURRED      VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                  109      110      50,787      49,568        2           5,330         1.82    2,665        450       48       11%
2003                  104      109      50,332      52,363        6          20,111         5.53    3,352        482     185        38%
2004                  113      106      56,439      51,860        1             -           0.94      -          490     -           0%
2005                  113      110      55,896      55,077        4           8,321         3.63    2,080        500       76       15%
2006                  106      106      58,731      53,880        6           9,111         5.63    1,518        506       86       17%
TOTAL                 544      541     272,185     262,748       19          42,873         3.51    2,256        485      79        16%

THIRD PARTY TOTAL

2002                  109      110      62,306      60,887        2           5,330         1.82    2,665        553       48        9%
2003                  104      109      63,687      65,444        6          20,111         5.53    3,352        603     185        31%
2004                  113      106      71,309      65,627        1             -           0.94      -          620     -           0%
2005                  113      110      70,194      69,133        4           8,321         3.63    2,080        627       76       12%
2006                  106      106      73,453      67,558        6           9,111         5.63    1,518        634       86       13%
TOTAL                 544      541     340,949     328,648       19          42,873         3.51    2,256        607      79        13%

ACCIDENT BENEFITS

2002                  109      110       5,464       5,028      -              -             -        N/A         46      -          0%
2003                  104      109       5,397       5,586      -              -             -        N/A         51      -          0%
2004                  113      106       6,039       5,580      -              -             -        N/A         53      -          0%
2005                  113      110       5,952       5,832      -              -             -        N/A         53      -          0%
2006                  106      106       6,054       5,700          1          500          0.94      500         54          5      9%
TOTAL                 544      541      28,906      27,725          1          500          0.18      500         51          1      2%

UNDERINSURED MOTORIST

2002                  109      110       1,874       1,861      -               -            -        N/A         17      -          0%
2003                  104      109       1,889       1,937      -               -            -        N/A         18      -          0%
2004                  113      106       2,061       1,940      -               -            -        N/A         18      -          0%
2005                  113      110       2,048       1,994      -               -            -        N/A         18      -          0%
2006                  106      106       2,042       1,949      -               -            -        N/A         18      -          0%
TOTAL                 544      541       9,914       9,681      -               -            -        N/A         18      -          0%



                                                                                                                                           2BII - 6
                                                                                                                       EXHIBIT II - CLASSIFICATION

                                                      CLASS 07 - FARMS AND FISHERMEN < 5000 KG

                                                            PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                       CLAIM
                                                                                  CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN          EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS        PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               20,926       20,926    6,854,196       6,552,423    1,122        8,264,375         5.36     7,366       313     395       126%
2003               20,619       20,739    7,352,748       7,126,027    1,115        6,978,581         5.38     6,259       344     336        98%
2004               20,261       20,460    7,226,492       7,297,470      995        4,700,248         4.86     4,724       357     230        64%
2005               19,239       19,785    6,817,146       7,045,200      947        4,874,237         4.79     5,147       356     246        69%
2006               17,922       18,439    6,641,219       6,628,724      856        3,382,356         4.64     3,951       359     183        51%
TOTAL              98,967      100,349   34,891,801      34,649,843    5,035       28,199,797         5.02     5,601       345     281        81%

THIRD PARTY TOTAL

2002               20,926       20,926    8,296,757       7,946,731    1,122       13,480,819         5.36    12,015       380     644       170%
2003               20,619       20,739    8,928,689       8,643,233    1,115       10,021,000         5.38     8,987       417     483       116%
2004               20,261       20,460    8,792,177       8,869,717      995        6,294,116         4.86     6,326       434     308        71%
2005               19,239       19,785    8,320,086       8,580,589      947        6,047,561         4.79     6,386       434     306        70%
2006               17,922       18,439    8,066,157       8,087,146      856        4,348,961         4.64     5,081       439     236        54%
TOTAL              98,967      100,349   42,403,866      42,127,416    5,035       40,192,457         5.02     7,983       420     401        95%

ACCIDENT BENEFITS

2002               20,926       20,926      844,448         772,130      162          513,639         0.77     3,171        37      25        67%
2003               20,619       20,739      895,448         872,006      162          283,616         0.78     1,751        42      14        33%
2004               20,261       20,460      882,207         889,630      144          484,585         0.70     3,365        43      24        54%
2005               19,239       19,785      833,880         859,119      120          323,077         0.61     2,692        43      16        38%
2006               17,922       18,439      816,017         818,075       95           79,365         0.52       835        44       4        10%
TOTAL              98,967      100,349    4,272,000       4,210,961      683        1,684,283         0.68     2,466        42      17        40%

UNDERINSURED MOTORIST

2002               20,926       20,926      408,580         398,956          1           -            0.00       -          19      -          0%
2003               20,619       20,739      437,210         423,836          1       175,000          0.00   175,000        20          8     41%
2004               20,261       20,460      429,701         433,723      -               -             -         N/A        21      -          0%
2005               19,239       19,785      406,135         418,394      -               -             -         N/A        21      -          0%
2006               17,922       18,439      393,966         397,749      -               -             -         N/A        22      -          0%
TOTAL              98,967      100,349    2,075,592       2,072,657          2       175,000          0.00    87,500        21          2      8%



                                                                                                                                                     2BII - 7
                                                                                                                  EXHIBIT II - CLASSIFICATION

                                                CLASS 08 - FARMS AND FISHERMEN >= 5000 KG

                                                       PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                CLAIM                       CLAIM
                                                                             CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                           ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN      EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS    PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                4,692       4,656   1,448,953    1,428,337      181        1,237,241         3.89     6,836       307     266        87%
2003                4,620       4,624   1,457,758    1,448,072      180          868,326         3.89     4,824       313     188        60%
2004                4,614       4,614   1,462,241    1,456,336      175        2,059,775         3.79    11,770       316     446       141%
2005                4,512       4,547   1,409,394    1,434,446      172          589,536         3.78     3,428       315     130        41%
2006                4,491       4,494   1,482,549    1,442,345      153          681,559         3.40     4,455       321     152        47%
TOTAL              22,928      22,936   7,260,895    7,209,535      861        5,436,437         3.75     6,314       314     237        75%

THIRD PARTY TOTAL

2002                4,692       4,656   1,534,831    1,512,537      181        1,237,241         3.89     6,836       325     266        82%
2003                4,620       4,624   1,557,508    1,542,299      180          868,326         3.89     4,824       334     188        56%
2004                4,614       4,614   1,569,119    1,559,932      175        3,185,518         3.79    18,203       338     690       204%
2005                4,512       4,547   1,519,531    1,544,022      172          589,536         3.78     3,428       340     130        38%
2006                4,491       4,494   1,598,688    1,556,100      153          681,559         3.40     4,455       346     152        44%
TOTAL              22,928      22,936   7,779,677    7,714,891      861        6,562,180         3.75     7,622       336     286        85%

ACCIDENT BENEFITS

2002                4,692       4,656     109,289      99,856        14          60,990          0.30     4,356        21      13        61%
2003                4,620       4,624     114,049     111,674        14           5,994          0.30       428        24       1         5%
2004                4,614       4,614     113,697     113,589        12         318,916          0.26    26,576        25      69       281%
2005                4,512       4,547     110,143     111,753        12          17,702          0.26     1,475        25       4        16%
2006                4,491       4,494     114,758     112,209         4           1,211          0.09       303        25       0         1%
TOTAL              22,928      22,936     561,936     549,081        56         404,813          0.24     7,229        24      18        74%

UNDERINSURED MOTORIST

2002                4,692       4,656      90,200      87,627       -               -             -         N/A        19      -          0%
2003                4,620       4,624      94,592      92,280           1       250,000          0.02   250,000        20          54   271%
2004                4,614       4,614      94,886      94,684       -               -             -         N/A        21      -          0%
2005                4,512       4,547      91,931      93,123       -               -             -         N/A        20      -          0%
2006                4,491       4,494      95,931      94,132       -               -             -         N/A        21      -          0%
TOTAL              22,928      22,935     467,540     461,847           1       250,000          0.00   250,000        20          11    54%



                                                                                                                                                2BII - 8
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                                            CLASS 09 - MOPED

                                                      PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN      EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS    PREMIUMS OF CLAIMS       INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                3,405       3,297     348,798     329,145       77         104,666          2.34     1,359       100          32    32%
2003                3,635       3,592     299,939     323,983      103         115,605          2.87     1,122        90          32    36%
2004                4,330       4,140     363,154     346,999      111         271,567          2.68     2,447        84          66    78%
2005                5,438       4,931     456,954     414,339      133         107,693          2.70       810        84          22    26%
2006                6,227       6,089     551,976     528,057      181         272,780          2.97     1,507        87          45    52%
TOTAL              23,035      22,049   2,020,821   1,942,523      605         872,311          2.74     1,442        88          40    45%

THIRD PARTY TOTAL

2002                3,405       3,297     394,831     372,954       77         104,666          2.34     1,359       113          32    28%
2003                3,635       3,592     354,940     376,654      103         115,605          2.87     1,122       105          32    31%
2004                4,330       4,140     429,053     409,381      111         271,567          2.68     2,447        99          66    66%
2005                5,438       4,931     541,788     490,726      133         107,693          2.70       810       100          22    22%
2006                6,227       6,089     651,787     624,636      181         272,780          2.97     1,507       103          45    44%
TOTAL              23,035      22,049   2,372,399   2,274,351      605         872,311          2.74     1,442       103          40    38%

ACCIDENT BENEFITS

2002                3,405       3,297     158,471     135,162       70           75,465         2.12     1,078        41          23    56%
2003                3,635       3,592     142,292     151,154       58          237,749         1.61     4,099        42          66   157%
2004                4,330       4,140     171,966     164,333       78          241,146         1.88     3,092        40          58   147%
2005                5,438       4,931     216,062     195,843       89          359,776         1.80     4,042        40          73   184%
2006                6,227       6,089     261,124     250,761      113          207,087         1.86     1,833        41          34    83%
TOTAL              23,035      22,049     949,915     897,252      408        1,121,223         1.85     2,748        41          51   125%

UNDERINSURED MOTORIST

2002                3,405       3,297      91,489      85,343      -               -             -         N/A        26      -          0%
2003                3,635       3,592      82,792      87,694      -               -             -         N/A        24      -          0%
2004                4,330       4,140      99,904      95,486          2       400,000          0.05   200,000        23          97   419%
2005                5,438       4,931     125,834     113,864      -               -             -         N/A        23      -          0%
2006                6,227       6,089     150,368     145,217      -               -             -         N/A        24      -          0%
TOTAL              23,035      22,049     550,387     527,605          2       400,000          0.01   200,000        24          18    76%



                                                                                                                                               2BII - 9
                                                                                                                  EXHIBIT II - CLASSIFICATION

                                                        CLASS 10 - OTHER MOTORCYLE

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                CLAIM                       CLAIM
                                                                             CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                           ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               25,446       25,453   10,572,106   10,538,972      947      6,026,213         3.72     6,363       414     237        57%
2003               27,368       27,159   11,220,569   11,167,961      996      6,539,520         3.67     6,566       411     241        59%
2004               31,390       30,845   12,982,307   12,750,287    1,042      6,685,544         3.38     6,416       413     217        52%
2005               34,322       33,800   14,286,518   14,058,878    1,067      6,971,144         3.16     6,533       416     206        50%
2006               37,652       37,206   16,580,562   16,245,910    1,126      4,442,870         3.03     3,946       437     119        27%
TOTAL             156,178      154,463   65,642,062   64,762,008    5,178     30,665,291         3.35     5,922       419     199        47%

THIRD PARTY TOTAL

2002               25,446       25,453   12,255,542   12,218,004      947      8,321,184         3.72     8,787       480     327        68%
2003               27,368       27,159   12,969,644   12,915,135      996      8,440,846         3.67     8,475       476     311        65%
2004               31,390       30,845   15,010,338   14,739,974    1,042      8,537,567         3.38     8,193       478     277        58%
2005               34,322       33,800   16,548,760   16,285,202    1,067      9,556,213         3.16     8,956       482     283        59%
2006               37,652       37,206   19,119,587   18,747,159    1,126      5,188,429         3.03     4,608       504     139        28%
TOTAL             156,178      154,463   75,903,871   74,905,474    5,178     40,044,238         3.35     7,734       485     259        53%

ACCIDENT BENEFITS

2002               25,446       25,453    4,976,379    4,790,507      847      7,717,075         3.33     9,111       188     303       161%
2003               27,368       27,159    5,513,134    5,457,160      975      6,568,991         3.59     6,737       201     242       120%
2004               31,390       30,845    6,352,068    6,241,520      951      9,573,712         3.08    10,067       202     310       153%
2005               34,322       33,800    6,955,241    6,860,595    1,009      9,913,923         2.99     9,825       203     293       145%
2006               37,652       37,206    8,068,680    7,913,859    1,038      6,558,928         2.79     6,319       213     176        83%
TOTAL             156,178      154,463   31,865,502   31,263,641    4,820     40,332,628         3.12     8,368       202     261       129%

UNDERINSURED MOTORIST

2002               25,446       25,453      510,421      507,841       12        922,275         0.05    76,856        20      36       182%
2003               27,368       27,159      549,051      545,342       16      2,694,466         0.06   168,404        20      99       494%
2004               31,390       30,845      626,264      616,037       11      3,620,461         0.04   329,133        20     117       588%
2005               34,322       33,800      679,798      669,482       13      5,169,496         0.04   397,654        20     153       772%
2006               37,652       37,206      794,867      777,221        1         33,000         0.00    33,000        21       1         4%
TOTAL             156,178      154,462    3,160,401    3,115,923       53     12,439,697         0.03   234,711        20      81       399%



                                                                                                                                                2BII - 10
                                                                                                                      EXHIBIT II - CLASSIFICATION

                                                      CLASS 11 - PLEASURE USE - MOTORHOME

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                               ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN         EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS       PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               25,948       25,943    8,234,029      8,293,845    1,093        4,527,253         4.21     4,142       320     175        55%
2003               25,380       25,506    7,897,870      7,988,628      965        3,345,389         3.78     3,467       313     131        42%
2004               25,322       25,407    7,873,435      7,904,913      967        4,271,494         3.81     4,417       311     168        54%
2005               24,864       25,080    7,721,503      7,790,606      962        3,475,866         3.84     3,613       311     139        45%
2006               24,765       24,679    8,117,604      7,939,845      779        1,832,202         3.16     2,352       322      74        23%
TOTAL             126,279      126,615   39,844,441     39,917,836    4,766       17,452,205         3.76     3,662       315     138        44%

THIRD PARTY TOTAL

2002               25,948       25,943   10,184,638     10,278,619    1,093        4,759,019         4.21     4,354       396     183        46%
2003               25,380       25,506    9,788,755      9,888,811      965        3,690,277         3.78     3,824       388     145        37%
2004               25,322       25,407    9,761,882      9,803,914      967        7,255,857         3.81     7,503       386     286        74%
2005               24,864       25,080    9,606,631      9,672,808      962        3,885,118         3.84     4,039       386     155        40%
2006               24,765       24,679   10,060,824      9,859,380      779        1,832,202         3.16     2,352       400      74        19%
TOTAL             126,279      126,615   49,402,730     49,503,532    4,766       21,422,474         3.76     4,495       391     169        43%

ACCIDENT BENEFITS

2002               25,948       25,943    1,106,487      1,041,000       98          228,194         0.38     2,329        40           9    22%
2003               25,380       25,506    1,039,637      1,056,565       98          247,122         0.38     2,522        41          10    23%
2004               25,322       25,407    1,039,786      1,043,573       88          487,274         0.35     5,537        41          19    47%
2005               24,864       25,080    1,020,052      1,029,145       60          338,354         0.24     5,639        41          13    33%
2006               24,765       24,679    1,077,760      1,053,771       67          302,844         0.27     4,520        43          12    29%
TOTAL             126,279      126,615    5,283,722      5,224,054      411        1,603,788         0.32     3,902        41          13    31%

UNDERINSURED MOTORIST

2002               25,948       25,942      451,841        447,169      -                -            -         N/A        17      -          0%
2003               25,380       25,506      452,654        451,624          2        250,104         0.01   125,052        18          10    55%
2004               25,322       25,407      449,536        451,839      -                -            -         N/A        18      -          0%
2005               24,864       25,080      439,856        443,822          1        815,000         0.00   815,000        18          32   184%
2006               24,765       24,679      463,793        454,384          2        690,000         0.01   345,000        18          28   152%
TOTAL             126,279      126,614    2,257,680      2,248,838          5      1,755,104         0.00   351,021        18          14    78%



                                                                                                                                                    2BII - 11
                                                                                                                  EXHIBIT II - CLASSIFICATION

                                                   CLASS 12 - GOLF CART,SNOWMOBILE,ATV

                                                       PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                CLAIM                       CLAIM
                                                                              CLAIMS AND   FREQUENCY                         COST
              NUMBER OF NUMBER OF                                            ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED       WRITTEN        EARNED   NUMBER         EXPENSES       EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES      PREMIUMS      PREMIUMS OF CLAIMS        INCURRED      VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                1,389      1,351      85,771        84,100          1          1,873         0.07     1,873        62          1      2%
2003                1,585      1,534      84,323        85,284      -                -            -         N/A        56      -          0%
2004                2,020      1,857      85,174        85,876        3              437         0.16       146        46          0      1%
2005                2,715      2,361      99,234        92,471       12            8,717         0.51       726        39          4      9%
2006                2,742      2,682     102,678        98,627        8           11,635         0.30     1,454        37          4     12%
TOTAL              10,451      9,785     457,180       446,358       24           22,662         0.25       944        46          2      5%

THIRD PARTY TOTAL

2002                1,389      1,351     128,045       125,461          1          1,873         0.07     1,873        93          1      1%
2003                1,585      1,534     131,703       131,379      -                -            -         N/A        86      -          0%
2004                2,020      1,857     137,174       135,418           3           437         0.16       146        73          0      0%
2005                2,715      2,361     165,546       151,554          12         8,717         0.51       726        64          4      6%
2006                2,742      2,682     166,545       161,475           8        11,635         0.30     1,454        60          4      7%
TOTAL              10,451      9,785     729,013       705,286          24        22,662         0.25       944        72          2      3%

ACCIDENT BENEFITS

2002                1,389      1,351      63,270        58,091      -                -            -        N/A         43      -          0%
2003                1,585      1,534      69,306        67,539      -                -            -        N/A         44      -          0%
2004                2,020      1,857      69,009        69,908      -                -            -        N/A         38      -          0%
2005                2,715      2,361      80,314        74,991      -                -            -        N/A         32      -          0%
2006                2,742      2,682      83,086        79,861      -                -            -        N/A         30      -          0%
TOTAL              10,451      9,785     364,985       350,390      -                -            -        N/A         36      -          0%

UNDERINSURED MOTORIST

2002                1,389      1,351      19,752        19,192      -                -            -        N/A         14      -          0%
2003                1,585      1,534      19,969        19,805      -                -            -        N/A         13      -          0%
2004                2,020      1,857      19,845        20,290      -                -            -        N/A         11      -          0%
2005                2,715      2,361      23,086        21,347      -                -            -        N/A          9      -          0%
2006                2,742      2,682      24,162        23,036      -                -            -        N/A          9      -          0%
TOTAL              10,451      9,785     106,814       103,670      -                -            -        N/A         11      -          0%



                                                                                                                                                2BII - 12
                                                                                                                        EXHIBIT II - CLASSIFICATION

                                                                CLASS 13 - ARTISANS

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                      CLAIM                       CLAIM
                                                                                   CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                 ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED          WRITTEN        EARNED   NUMBER           EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES         PREMIUMS      PREMIUMS OF CLAIMS          INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               75,964       77,308    40,111,435    39,342,408     7,528        41,352,182         9.74     5,493       509     535       105%
2003               69,401       71,751    38,730,707    39,008,847     6,918        37,062,589         9.64     5,357       544     517        95%
2004               71,670       70,663    40,117,201    39,520,033     6,838        33,959,095         9.68     4,966       559     481        86%
2005               75,677       73,721    42,192,982    41,164,769     7,312        33,184,379         9.92     4,538       558     450        81%
2006               79,750       77,968    46,671,726    44,308,629     7,110        25,037,287         9.12     3,521       568     321        57%
TOTAL             372,461      371,412   207,824,051   203,344,686    35,706       170,595,532         9.61     4,778       547     459        84%

THIRD PARTY TOTAL

2002               75,964       77,308    47,649,668    46,825,235     7,528        45,459,794         9.74     6,039       606     588        97%
2003               69,401       71,751    46,015,213    46,333,843     6,918        40,915,360         9.64     5,914       646     570        88%
2004               71,670       70,663    47,792,329    47,017,260     6,838        35,984,865         9.68     5,262       665     509        77%
2005               75,677       73,721    50,431,164    49,115,193     7,312        35,564,968         9.92     4,864       666     482        72%
2006               79,750       77,968    55,606,466    52,935,628     7,110        25,204,106         9.12     3,545       679     323        48%
TOTAL             372,461      371,412   247,494,840   242,227,158    35,706       183,129,093         9.61     5,129       652     493        76%

ACCIDENT BENEFITS

2002               75,964       77,308     3,529,106     3,261,174     1,104         2,706,204         1.43     2,451        42      35        83%
2003               69,401       71,751     3,418,491     3,435,296       978         1,878,502         1.36     1,921        48      26        55%
2004               71,670       70,663     3,547,658     3,490,923       883         1,452,379         1.25     1,645        49      21        42%
2005               75,677       73,721     3,717,461     3,632,186       933         1,729,350         1.27     1,854        49      23        48%
2006               79,750       77,968     4,092,479     3,906,775       868           822,713         1.11       948        50      11        21%
TOTAL             372,461      371,412    18,305,195    17,726,355     4,766         8,589,149         1.28     1,802        48      23        48%

UNDERINSURED MOTORIST

2002               75,964       77,308     1,441,292     1,430,060           3            -            0.00       -          18      -          0%
2003               69,401       71,751     1,443,909     1,429,877       -                -             -         N/A        20      -          0%
2004               71,670       70,663     1,490,518     1,469,805           3            -            0.00       -          21      -          0%
2005               75,677       73,721     1,562,793     1,526,555           4        640,000          0.01   160,000        21          9     42%
2006               79,750       77,968     1,710,212     1,640,712       -                -             -         N/A        21      -          0%
TOTAL             372,461      371,411     7,648,724     7,497,009           10       640,000          0.00    64,000        20          2      9%



                                                                                                                                                      2BII - 13
                                                                                                                   EXHIBIT II - CLASSIFICATION

                                                       CLASS 14 - DELIVERY < 5000 KG

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                 CLAIM                       CLAIM
                                                                              CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                            ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               15,045      15,304   13,597,800   12,847,898    3,256       14,831,848        21.27     4,555       839     969       115%
2003               14,705      14,818   14,799,701   14,162,069    3,032       13,872,073        20.46     4,575       956     936        98%
2004               14,451      14,536   14,195,896   14,470,762    2,919       12,789,895        20.08     4,382       996     880        88%
2005               14,501      14,523   14,017,497   14,141,474    2,974       11,008,466        20.48     3,702       974     758        78%
2006               14,464      14,527   14,469,270   14,216,752    2,648        6,971,263        18.23     2,633       979     480        49%
TOTAL              73,164      73,709   71,080,164   69,838,956   14,829       59,473,545        20.12     4,011       947     807        85%

THIRD PARTY TOTAL

2002               15,045      15,304   16,800,281   15,904,329    3,256       17,664,057        21.27     5,425      1,039   1,154      111%
2003               14,705      14,818   18,397,214   17,559,514    3,032       15,268,649        20.46     5,036      1,185   1,030       87%
2004               14,451      14,536   17,670,240   17,996,596    2,919       13,633,098        20.08     4,670      1,238     938       76%
2005               14,501      14,523   17,546,121   17,658,111    2,974       12,785,693        20.48     4,299      1,216     880       72%
2006               14,464      14,527   17,956,215   17,740,589    2,648        6,971,263        18.23     2,633      1,221     480       39%
TOTAL              73,164      73,709   88,370,071   86,859,140   14,829       66,322,761        20.12     4,473      1,178     900       76%

ACCIDENT BENEFITS

2002               15,045      15,304    1,034,689      928,849      548          553,815         3.58     1,011        61          36    60%
2003               14,705      14,818    1,082,400    1,053,334      520          685,833         3.51     1,319        71          46    65%
2004               14,451      14,536    1,049,386    1,063,854      462          298,685         3.18       647        73          21    28%
2005               14,501      14,523    1,043,719    1,049,518      485          788,627         3.34     1,626        72          54    75%
2006               14,464      14,527    1,079,790    1,063,839      419          355,294         2.88       848        73          24    33%
TOTAL              73,164      73,709    5,289,984    5,159,393    2,434        2,682,254         3.30     1,102        70          36    52%

UNDERINSURED MOTORIST

2002               15,045      15,304      312,200      305,958      -               -             -         N/A        20      -          0%
2003               14,705      14,818      329,017      319,598      -               -             -         N/A        22      -          0%
2004               14,451      14,536      317,409      322,617          1       400,000          0.01   400,000        22          28   124%
2005               14,501      14,523      315,628      317,176      -               -             -         N/A        22      -          0%
2006               14,464      14,527      324,748      321,426      -               -             -         N/A        22      -          0%
TOTAL              73,164      73,709    1,599,002    1,586,775          1       400,000          0.00   400,000        22          5     25%



                                                                                                                                                 2BII - 14
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                                 CLASS 15 - MUNICIPAL GOVERNMENT VEHICLES

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   17           2        7,998        1,048      -              -            -        N/A        537     -           0%
2003                4,903       3,081    1,929,307    1,230,550      189        405,564         6.13    2,146        399     132        33%
2004                4,809       4,885    1,890,786    1,925,473      286        951,767         5.85    3,328        394     195        49%
2005                4,824       4,829    1,901,683    1,901,042      271        560,207         5.61    2,067        394     116        29%
2006                4,939       4,897    2,002,332    1,948,680      265        773,687         5.41    2,920        398     158        40%
TOTAL              19,492      17,695    7,732,106    7,006,794    1,011      2,691,224         5.71    2,662        396     152        38%

THIRD PARTY TOTAL

2002                   17           2       10,573        1,368      -              -            -        N/A        701     -           0%
2003                4,903       3,081    2,669,983    1,714,453      189        405,564         6.13    2,146        556     132        24%
2004                4,809       4,885    2,688,917    2,697,055      286      1,044,969         5.85    3,654        552     214        39%
2005                4,824       4,829    2,700,755    2,696,089      271        560,207         5.61    2,067        558     116        21%
2006                4,939       4,897    2,819,004    2,761,304      265        773,687         5.41    2,920        564     158        28%
TOTAL              19,492      17,695   10,889,232    9,870,269    1,011      2,784,427         5.71    2,754        558     157        28%

ACCIDENT BENEFITS

2002                   17           2         699           90       -             -             -        N/A         46      -          0%
2003                4,903       3,081     184,320      116,472        17         2,095          0.55      123         38          1      2%
2004                4,809       4,885     180,621      184,451        39         7,054          0.80      181         38          1      4%
2005                4,824       4,829     181,194      181,466        24         4,724          0.50      197         38          1      3%
2006                4,939       4,897     191,754      186,838        24         9,909          0.49      413         38          2      5%
TOTAL              19,492      17,695     738,588      669,316       104        23,781          0.59      229         38          1      4%

UNDERINSURED MOTORIST

2002                   17           2         299           36       -              -            -        N/A         19      -          0%
2003                4,903       3,081      77,837       49,033       -              -            -        N/A         16      -          0%
2004                4,809       4,885      76,006       77,706       -              -            -        N/A         16      -          0%
2005                4,824       4,829      76,113       76,284       -              -            -        N/A         16      -          0%
2006                4,939       4,897      80,400       78,437       -              -            -        N/A         16      -          0%
TOTAL              19,492      17,695     310,655      281,496       -              -            -        N/A         16      -          0%



                                                                                                                                               2BII - 15
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                                    CLASS 16 - LOGGING OR SILVICULTURE

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                3,052       2,843   1,149,343     1,072,269       76        338,869         2.67     4,459       377     119        32%
2003                3,165       3,141   1,151,296     1,162,493       78        368,794         2.48     4,728       370     117        32%
2004                3,399       3,278   1,243,645     1,202,027       90        392,937         2.75     4,366       367     120        33%
2005                3,724       3,556   1,406,266     1,322,910      101        484,136         2.84     4,793       372     136        37%
2006                3,958       3,833   1,567,154     1,480,833      114        236,027         2.97     2,070       386      62        16%
TOTAL              17,299      16,652   6,517,704     6,240,532      459      1,820,764         2.76     3,967       375     109        29%

THIRD PARTY TOTAL

2002                3,052       2,843   1,484,071     1,386,257       76        338,869         2.67     4,459       488     119        24%
2003                3,165       3,141   1,556,513     1,535,507       78        368,794         2.48     4,728       489     117        24%
2004                3,399       3,278   1,658,499     1,610,693       90        392,937         2.75     4,366       491     120        24%
2005                3,724       3,556   1,880,446     1,771,786      101        635,550         2.84     6,293       498     179        36%
2006                3,958       3,833   2,065,325     1,968,337      114        236,027         2.97     2,070       513      62        12%
TOTAL              17,299      16,652   8,644,854     8,272,579      459      1,972,178         2.76     4,297       497     118        24%

ACCIDENT BENEFITS

2002                3,052       2,843     122,005      104,631         6           581          0.21        97        37          0      1%
2003                3,165       3,141     130,039      126,905         7         3,188          0.22       455        40          1      3%
2004                3,399       3,278     141,848      136,164         7         2,229          0.21       318        42          1      2%
2005                3,724       3,556     158,653      150,650        11        14,923          0.31     1,357        42          4     10%
2006                3,958       3,833     173,971      165,893         9         3,734          0.23       415        43          1      2%
TOTAL              17,299      16,652     726,516      684,244        40        24,655          0.24       616        41          1      4%

UNDERINSURED MOTORIST

2002                3,052       2,843      49,561       45,081       -              -            -        N/A         16      -          0%
2003                3,165       3,141      53,452       52,029       -              -            -        N/A         17      -          0%
2004                3,399       3,278      57,676       55,626       -              -            -        N/A         17      -          0%
2005                3,724       3,556      64,842       61,259       -              -            -        N/A         17      -          0%
2006                3,958       3,833      71,685       68,541       -              -            -        N/A         18      -          0%
TOTAL              17,299      16,652     297,216      282,535       -              -            -        N/A         17      -          0%



                                                                                                                                               2BII - 16
                                                                                                                     EXHIBIT II - CLASSIFICATION

                                                    CLASS 17 - EMERGENCY VEHICLES < 5000 KG

                                                          PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                   CLAIM                       CLAIM
                                                                                CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                              ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN         EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS       PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                3,288       3,268   1,471,754       1,461,621      331        1,090,105        10.13     3,293       447     334        75%
2003                3,235       3,239   1,443,658       1,448,398      336        1,949,879        10.37     5,803       447     602       135%
2004                3,272       3,293   1,477,977       1,479,139      391        1,257,730        11.87     3,217       449     382        85%
2005                3,433       3,376   1,560,851       1,534,756      372        1,044,822        11.02     2,809       455     310        68%
2006                3,490       3,472   1,638,676       1,599,325      412          875,570        11.87     2,125       461     252        55%
TOTAL              16,718      16,648   7,592,916       7,523,238    1,842        6,218,105        11.06     3,376       452     373        83%

THIRD PARTY TOTAL

2002                3,288       3,268   1,793,976       1,780,405      331        1,090,105        10.13     3,293       545     334        61%
2003                3,235       3,239   1,876,407       1,845,022      336        2,785,247        10.37     8,289       570     860       151%
2004                3,272       3,293   1,925,564       1,926,771      391        1,257,730        11.87     3,217       585     382        65%
2005                3,433       3,376   2,028,689       1,996,024      372        1,068,407        11.02     2,872       591     316        54%
2006                3,490       3,472   2,115,362       2,074,568      412          875,570        11.87     2,125       597     252        42%
TOTAL              16,718      16,648   9,739,998       9,622,790    1,842        7,077,059        11.06     3,842       578     425        74%

ACCIDENT BENEFITS

2002                3,288       3,268     129,623        120,260        20             888          0.61       44         37       0         1%
2003                3,235       3,239     137,037        133,881        27           8,673          0.83      321         41       3         6%
2004                3,272       3,293     139,754        140,126        24           7,123          0.73      297         43       2         5%
2005                3,433       3,376     148,920        146,336        30          13,813          0.89      460         43       4         9%
2006                3,490       3,472     155,809        152,908        23          10,116          0.66      440         44       3         7%
TOTAL              16,718      16,648     711,143        693,513       124          40,613          0.74      328         42       2         6%

UNDERINSURED MOTORIST

2002                3,288       3,268      51,796         50,439           2       622,935          0.06   311,468        15     191      1235%
2003                3,235       3,239      53,726         52,752       -               -             -         N/A        16     -           0%
2004                3,272       3,293      54,898         55,116       -               -             -         N/A        17     -           0%
2005                3,433       3,376      57,617         56,767       -               -             -         N/A        17     -           0%
2006                3,490       3,472      60,065         59,009       -               -             -         N/A        17     -           0%
TOTAL              16,718      16,648     278,102        274,083           2       622,935          0.01   311,468        16       37      227%



                                                                                                                                                   2BII - 17
                                                                                                                EXHIBIT II - CLASSIFICATION

                                                       CLASS 18 - FARM TRACTOR

                                                     PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                       CLAIM
                                                                            CLAIMS AND   FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED       WRITTEN      EARNED   NUMBER         EXPENSES       EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES      PREMIUMS    PREMIUMS OF CLAIMS        INCURRED      VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                  510        517      37,210      37,557          5          2,570         0.97       514        73           5     7%
2003                  574        548      41,396      39,533          7          3,867         1.28       552        72           7    10%
2004                  361        453      27,855      34,074          5          6,359         1.10     1,272        75          14    19%
2005                  315        316      24,048      24,062      -                -            -         N/A        76      -          0%
2006                  317        319      25,408      25,101        3           10,519         0.94     3,506        79          33    42%
TOTAL               2,077      2,154     155,917     160,326       20           23,315         0.93     1,166        74          11    15%

THIRD PARTY TOTAL

2002                  510        517      54,431      55,359          5          2,570         0.97       514       107           5     5%
2003                  574        548      60,075      57,871          7          3,867         1.28       552       106           7     7%
2004                  361        453      41,749      50,019          5          6,359         1.10     1,272       110          14    13%
2005                  315        316      35,281      35,015      -                -            -         N/A       111      -          0%
2006                  317        319      36,428      36,277           3        10,519         0.94     3,506       114          33    29%
TOTAL               2,077      2,154     227,964     234,542          20        23,315         0.93     1,166       109          11    10%

ACCIDENT BENEFITS

2002                  510        517       4,697       4,467      -                -            -        N/A          9      -          0%
2003                  574        548       5,636       5,224      -                -            -        N/A         10      -          0%
2004                  361        453       3,740       4,615      -                -            -        N/A         10      -          0%
2005                  315        316       3,234       3,232      -                -            -        N/A         10      -          0%
2006                  317        319       3,439       3,378          1            -           0.31      -           11      -          0%
TOTAL               2,077      2,154      20,746      20,916          1            -           0.05      -           10      -          0%

UNDERINSURED MOTORIST

2002                  510        517       8,095       8,004      -                -            -        N/A         15      -          0%
2003                  574        548       9,529       8,887      -                -            -        N/A         16      -          0%
2004                  361        453       6,358       7,821      -                -            -        N/A         17      -          0%
2005                  315        316       5,459       5,462      -                -            -        N/A         17      -          0%
2006                  317        319       5,787       5,712      -                -            -        N/A         18      -          0%
TOTAL               2,077      2,154      35,228      35,886      -                -            -        N/A         17      -          0%



                                                                                                                                              2BII - 18
                                                                                                                EXHIBIT II - CLASSIFICATION

                                                            CLASS 19 - WRECKER

                                                       PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                       CLAIM
                                                                           CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                         ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED       WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES      PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                1,448      1,408    1,797,581    1,707,841      481      2,473,154        34.15    5,142       1,213   1,756      145%
2003                1,438      1,432    2,094,392    1,943,959      447      2,649,926        31.21    5,928       1,357   1,850      136%
2004                1,470      1,471    2,021,399    2,070,038      446      2,423,373        30.33    5,434       1,408   1,648      117%
2005                1,478      1,479    2,013,104    2,040,273      435      2,017,666        29.41    4,638       1,379   1,364       99%
2006                1,484      1,475    2,111,700    2,010,729      421      1,849,819        28.54    4,394       1,363   1,254       92%
TOTAL               7,320      7,265   10,038,176    9,772,839    2,230     11,413,938        30.69    5,118       1,345   1,571      117%

THIRD PARTY TOTAL

2002                1,448      1,408    2,325,780    2,209,610      481      2,832,222        34.15    5,888       1,569   2,011      128%
2003                1,438      1,432    2,825,056    2,574,615      447      2,952,762        31.21    6,606       1,798   2,062      115%
2004                1,470      1,471    2,732,102    2,793,358      446      3,207,119        30.33    7,191       1,899   2,181      115%
2005                1,478      1,479    2,756,159    2,768,781      435      2,017,666        29.41    4,638       1,872   1,364       73%
2006                1,484      1,475    2,846,047    2,753,102      421      1,900,891        28.54    4,515       1,866   1,289       69%
TOTAL               7,320      7,265   13,485,144   13,099,467    2,230     12,910,660        30.69    5,790       1,803   1,777       99%

ACCIDENT BENEFITS

2002                1,448      1,408      84,128       74,202        42        12,340          2.98      294         53       9        17%
2003                1,438      1,432      92,505       88,097        35        94,972          2.44    2,713         62      66       108%
2004                1,470      1,471      90,215       92,013        43       107,605          2.92    2,502         63      73       117%
2005                1,478      1,479      90,501       91,357        36        49,343          2.43    1,371         62      33        54%
2006                1,484      1,475      94,117       90,644        36        39,327          2.44    1,092         61      27        43%
TOTAL               7,320      7,265     451,466      436,314       192       303,587          2.64    1,581         60      42        70%

UNDERINSURED MOTORIST

2002                1,448      1,408      28,985       27,785       -              -            -        N/A         20      -          0%
2003                1,438      1,432      31,428       30,213       -              -            -        N/A         21      -          0%
2004                1,470      1,471      31,242       31,499       -              -            -        N/A         21      -          0%
2005                1,478      1,479      31,360       31,548       -              -            -        N/A         21      -          0%
2006                1,484      1,475      32,702       31,581       -              -            -        N/A         21      -          0%
TOTAL               7,320      7,265     155,717      152,626       -              -            -        N/A         21      -          0%



                                                                                                                                              2BII - 19
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                         CLASS 20 - WOODCHIP,LOGGING AND DUMP TRUCKS > 5000 KG

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               11,262      11,065   12,449,274   12,194,552    1,507     12,628,299        13.62     8,380      1,102   1,141      104%
2003               11,601      11,352   13,018,647   12,588,548    1,619     13,392,332        14.26     8,272      1,109   1,180      106%
2004               12,332      12,045   14,185,570   13,717,717    1,703     14,314,799        14.14     8,406      1,139   1,188      104%
2005               13,300      12,821   15,290,924   14,687,899    1,818     14,736,094        14.18     8,106      1,146   1,149      100%
2006               13,591      13,373   16,289,313   15,742,582    1,868      8,578,882        13.97     4,593      1,177     642       54%
TOTAL              62,085      60,657   71,233,728   68,931,298    8,515     63,650,406        14.04     7,475      1,136   1,049       92%

THIRD PARTY TOTAL

2002               11,262      11,065   13,712,937   13,426,131    1,507     15,867,570        13.62    10,529      1,213   1,434      118%
2003               11,601      11,352   14,744,590   14,098,035    1,619     14,116,608        14.26     8,719      1,242   1,243      100%
2004               12,332      12,045   16,058,571   15,533,787    1,703     21,554,792        14.14    12,657      1,290   1,789      139%
2005               13,300      12,821   17,444,365   16,684,488    1,818     15,670,307        14.18     8,620      1,301   1,222       94%
2006               13,591      13,373   18,662,485   18,046,542    1,868      9,072,071        13.97     4,857      1,349     678       50%
TOTAL              62,085      60,657   80,622,948   77,788,983    8,515     76,281,348        14.04     8,958      1,282   1,258       98%

ACCIDENT BENEFITS

2002               11,262      11,065      801,850      739,126       59       243,374          0.53     4,125        67      22        33%
2003               11,601      11,352      887,137      845,506       81       341,348          0.71     4,214        74      30        40%
2004               12,332      12,045      958,960      930,786       69       140,212          0.57     2,032        77      12        15%
2005               13,300      12,821    1,029,029      990,804       79       173,775          0.62     2,200        77      14        18%
2006               13,591      13,373    1,079,354    1,047,733       67        20,958          0.50       313        78       2         2%
TOTAL              62,085      60,657    4,756,330    4,553,955      355       919,667          0.59     2,591        75      15        20%

UNDERINSURED MOTORIST

2002               11,262      11,065      204,497      196,602      -              -            -        N/A         18      -          0%
2003               11,601      11,352      224,915      214,007      -              -            -        N/A         19      -          0%
2004               12,332      12,045      239,111      233,377      -              -            -        N/A         19      -          0%
2005               13,300      12,821      257,014      248,059      -              -            -        N/A         19      -          0%
2006               13,591      13,373      274,029      265,650      -              -            -        N/A         20      -          0%
TOTAL              62,085      60,657    1,199,566    1,157,695      -              -            -        N/A         19      -          0%



                                                                                                                                               2BII - 20
                                                                                                                 EXHIBIT II - CLASSIFICATION

                       CLASS 21 - CEMENT DELIVERY,GARBAGE TRUCKS,DELIVERY OF SOLID WASTE AND HOUSEHOLD GOODS

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               11,080      11,147    2,847,605    2,819,998      489      1,831,148         4.39     3,745       253     164        65%
2003               11,438      11,180    3,033,463    2,922,198      472      1,307,652         4.22     2,770       261     117        45%
2004               11,866      11,706    3,240,161    3,160,584      522      2,738,215         4.46     5,246       270     234        87%
2005               12,448      12,168    3,482,980    3,348,101      506      4,385,154         4.16     8,666       275     360       131%
2006               13,142      12,800    3,934,903    3,703,478      548      3,033,615         4.28     5,536       289     237        82%
TOTAL              59,973      59,000   16,539,112   15,954,360    2,537     13,295,784         4.30     5,241       270     225        83%

THIRD PARTY TOTAL

2002               11,080      11,147    3,348,775    3,325,889      489      1,831,148         4.39     3,745       298     164        55%
2003               11,438      11,180    3,644,276    3,478,029      472      1,307,652         4.22     2,770       311     117        38%
2004               11,866      11,706    3,875,029    3,795,340      522      3,356,848         4.46     6,431       324     287        88%
2005               12,448      12,168    4,175,786    4,008,952      506      4,385,154         4.16     8,666       329     360       109%
2006               13,142      12,800    4,697,051    4,447,971      548      3,332,962         4.28     6,082       348     260        75%
TOTAL              59,973      59,000   19,740,917   19,056,180    2,537     14,213,764         4.30     5,603       323     241        75%

ACCIDENT BENEFITS

2002               11,080      11,147      231,495      212,045        9         4,575          0.08      508         19       0         2%
2003               11,438      11,180      256,454      242,811       14         3,116          0.13      223         22       0         1%
2004               11,866      11,706      272,893      266,727       12       119,534          0.10    9,961         23      10        45%
2005               12,448      12,168      291,094      281,668       12        24,571          0.10    2,048         23       2         9%
2006               13,142      12,800      324,687      307,522       14        54,056          0.11    3,861         24       4        18%
TOTAL              59,973      59,000    1,376,623    1,310,773       61       205,851          0.10    3,375         22       3        16%

UNDERINSURED MOTORIST

2002               11,080      11,147      189,255      185,201      -              -            -        N/A         17      -          0%
2003               11,438      11,180      209,036      197,982      -              -            -        N/A         18      -          0%
2004               11,866      11,706      218,631      215,379      -              -            -        N/A         18      -          0%
2005               12,448      12,168      230,602      224,584      -              -            -        N/A         18      -          0%
2006               13,142      12,800      254,850      242,665      -              -            -        N/A         19      -          0%
TOTAL              59,973      59,000    1,102,374    1,065,811      -              -            -        N/A         18      -          0%



                                                                                                                                               2BII - 21
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                         CLASS 22 - DELIVERY,CONSTRUCTION MATERIAL > 5000 KG

                                                     PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED       WRITTEN      EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES      PREMIUMS    PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                  602        660     629,611     676,087       73           280,254        11.06    3,839       1,024    424        41%
2003                  660        636     711,393     674,052       61           504,408         9.58    8,269       1,059    793        75%
2004                  712        687     750,468     734,820       90           570,572        13.11    6,340       1,070    831        78%
2005                  781        745     861,591     803,954       79           255,965        10.60    3,240       1,079    343        32%
2006                  864        836   1,044,472     960,653       97           676,076        11.60    6,970       1,149    809        70%
TOTAL               3,620      3,565   3,997,535   3,849,565      400         2,287,275        11.22    5,718       1,080    642        59%

THIRD PARTY TOTAL

2002                  602        660     687,591     728,494       73           280,254        11.06    3,839       1,103    424        38%
2003                  660        636     785,418     739,531       61           504,408         9.58    8,269       1,162    793        68%
2004                  712        687     832,782     813,198       90           570,572        13.11    6,340       1,184    831        70%
2005                  781        745     955,272     892,416       79           255,965        10.60    3,240       1,197    343        29%
2006                  864        836   1,160,863   1,068,213       97           676,076        11.60    6,970       1,278    809        63%
TOTAL               3,620      3,565   4,421,926   4,241,851      400         2,287,275        11.22    5,718       1,190    642        54%

ACCIDENT BENEFITS

2002                  602        660      25,030      24,753           4        29,610          0.61     7,403        37      45       120%
2003                  660        636      27,034      26,047           2           155          0.31        78        41       0         1%
2004                  712        687      28,869      28,116           9        29,545          1.31     3,283        41      43       105%
2005                  781        745      32,672      30,681           5           172          0.67        34        41       0         1%
2006                  864        836      38,710      36,164           5           248          0.60        50        43       0         1%
TOTAL               3,620      3,565     152,315     145,760          25        59,730          0.70     2,389        41      17        41%

UNDERINSURED MOTORIST

2002                  602        660      10,640      11,398      -                 -            -        N/A         17      -          0%
2003                  660        636      12,438      11,698      -                 -            -        N/A         18      -          0%
2004                  712        687      13,373      12,939      -                 -            -        N/A         19      -          0%
2005                  781        745      14,721      14,053      -                 -            -        N/A         19      -          0%
2006                  864        836      17,030      16,180      -                 -            -        N/A         19      -          0%
TOTAL               3,620      3,565      68,202      66,269      -                 -            -        N/A         19      -          0%



                                                                                                                                               2BII - 22
                                                                                                                     EXHIBIT II - CLASSIFICATION

                                                      CLASS 23 - DELIVERY,OTHER > 5000 KG

                                                          PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                   CLAIM                       CLAIM
                                                                                CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                              ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN        EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS      PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               15,099      14,870    22,768,817    21,947,974    3,214       23,102,039        21.61    7,188       1,476   1,554      105%
2003               15,432      15,255    25,080,155    23,900,634    3,178       20,071,464        20.83    6,316       1,567   1,316       84%
2004               16,754      16,117    27,548,138    26,391,052    3,654       19,559,476        22.67    5,353       1,637   1,214       74%
2005               18,006      17,323    29,764,820    28,494,152    3,899       24,036,532        22.51    6,165       1,645   1,388       84%
2006               19,001      18,534    33,482,197    31,617,277    3,672       13,648,759        19.81    3,717       1,706     736       43%
TOTAL              84,292      82,100   138,644,127   132,351,089   17,617      100,418,270        21.46    5,700       1,612   1,223       76%

THIRD PARTY TOTAL

2002               15,099      14,870    24,864,808    23,935,627    3,214       24,725,621        21.61    7,693       1,610   1,663      103%
2003               15,432      15,255    27,995,999    26,409,205    3,178       20,530,308        20.83    6,460       1,731   1,346       78%
2004               16,754      16,117    30,791,943    29,463,334    3,654       20,090,299        22.67    5,498       1,828   1,247       68%
2005               18,006      17,323    33,392,035    31,908,706    3,899       26,570,747        22.51    6,815       1,842   1,534       83%
2006               19,001      18,534    37,542,398    35,514,576    3,672       14,545,352        19.81    3,961       1,916     785       41%
TOTAL              84,292      82,100   154,587,183   147,231,448   17,617      106,462,327        21.46    6,043       1,793   1,297       72%

ACCIDENT BENEFITS

2002               15,099      14,870       957,583       862,543      135          333,139         0.91    2,468         58      22        39%
2003               15,432      15,255       986,820       967,061      131          805,207         0.86    6,147         63      53        83%
2004               16,754      16,117     1,081,666     1,038,500      133          113,925         0.83      857         64       7        11%
2005               18,006      17,323     1,165,042     1,117,134      146          336,031         0.84    2,302         64      19        30%
2006               19,001      18,534     1,302,178     1,234,244      122          163,060         0.66    1,337         67       9        13%
TOTAL              84,292      82,100     5,493,289     5,219,481      667        1,751,362         0.81    2,626         64      21        34%

UNDERINSURED MOTORIST

2002               15,099      14,870       283,182       272,079          1            -           0.01      -           18      -          0%
2003               15,432      15,255       323,890       303,871      -                -            -        N/A         20      -          0%
2004               16,754      16,117       355,431       340,823      -                -            -        N/A         21      -          0%
2005               18,006      17,323       379,275       365,329      -                -            -        N/A         21      -          0%
2006               19,001      18,534       415,212       397,526      -                -            -        N/A         21      -          0%
TOTAL              84,292      82,100     1,756,990     1,679,628          1            -           0.00      -           20      -          0%



                                                                                                                                                   2BII - 23
                                                                                                                       EXHIBIT II - CLASSIFICATION

                                                                CLASS 24 - TRAILERS

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                       CLAIM
                                                                                  CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED           WRITTEN       EARNED   NUMBER          EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES          PREMIUMS     PREMIUMS OF CLAIMS         INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              262,756        261,152    6,730,575    6,588,520       436          797,777         0.17     1,830        25          3     12%
2003              268,398        265,556    6,524,996    6,609,596       372          237,177         0.14       638        25          1      4%
2004              281,272        276,159    6,989,216    6,794,155       414          535,169         0.15     1,293        25          2      8%
2005              297,211        289,458    7,506,800    7,240,759       420          636,683         0.15     1,516        25          2      9%
2006              316,167        307,595    8,530,160    8,054,992       428        1,439,287         0.14     3,363        26          5     18%
TOTAL           1,425,805      1,399,920   36,281,747   35,288,022     2,070        3,646,094         0.15     1,761        25          3     10%

THIRD PARTY TOTAL

2002              262,756        261,152    8,504,749    8,326,852       436          797,777         0.17     1,830        32          3     10%
2003              268,398        265,556    8,571,175    8,542,302       372          237,177         0.14       638        32          1      3%
2004              281,272        276,159    9,239,275    8,958,743       414          535,169         0.15     1,293        32          2      6%
2005              297,211        289,458    9,971,899    9,602,104       420          636,683         0.15     1,516        33          2      7%
2006              316,167        307,595   11,272,144   10,674,586       428        1,439,287         0.14     3,363        35          5     13%
TOTAL           1,425,805      1,399,920   47,559,242   46,104,587     2,070        3,646,094         0.15     1,761        33          3      8%

ACCIDENT BENEFITS

2002              262,756        261,152      864,444      748,611       11            3,372          0.00       307         3          0      0%
2003              268,398        265,556      794,969      822,679       10           23,587          0.00     2,359         3          0      3%
2004              281,272        276,159      838,211      820,867       16          236,018          0.01    14,751         3          1     29%
2005              297,211        289,458      889,327      863,481        8           11,621          0.00     1,453         3          0      1%
2006              316,167        307,595    1,087,038      994,799       15           25,145          0.00     1,676         3          0      3%
TOTAL           1,425,805      1,399,920    4,473,989    4,250,438       60          299,743          0.00     4,996         3          0      7%

UNDERINSURED MOTORIST

2002              262,756        261,111      518,343      513,768       -                -            -        N/A          2      -          0%
2003              268,398        265,523      529,293      523,332       -                -            -        N/A          2      -          0%
2004              281,272        276,117      552,853      543,367           1            -           0.00      -            2      -          0%
2005              297,211        289,409      581,303      567,536       -                -            -        N/A          2      -          0%
2006              316,167        307,541      617,527      601,439       -                -            -        N/A          2      -          0%
TOTAL           1,425,805      1,399,701    2,799,319    2,749,443           1            -           0.00      -            2      -          0%



                                                                                                                                                     2BII - 24
                                                                                                                   EXHIBIT II - CLASSIFICATION

                                                           CLASS 25 - BUSES < 160 KM

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                 CLAIM                       CLAIM
                                                                              CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                            ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN       EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS     PREMIUMS OF CLAIMS       INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                1,044      1,063      1,866,314    1,854,588       374      1,005,491        35.18    2,688       1,745     946       54%
2003                1,152      1,111      1,905,551    1,888,683       335      2,879,940        30.16    8,597       1,701   2,593      152%
2004                1,290      1,232      2,172,997    2,070,018       402      1,233,459        32.63    3,068       1,680   1,001       60%
2005                1,368      1,348      2,220,025    2,199,150       475      2,218,701        35.23    4,671       1,631   1,645      101%
2006                1,495      1,459      2,593,693    2,479,130       482      1,319,742        33.05    2,738       1,700     905       53%
TOTAL               6,350      6,212     10,758,580   10,491,570     2,068      8,657,333        33.29    4,186       1,689   1,394       83%

THIRD PARTY TOTAL

2002                1,044      1,063      1,978,275    1,973,330       374      1,005,491        35.18    2,688       1,856     946       51%
2003                1,152      1,111      2,056,189    2,027,495       335      2,879,940        30.16    8,597       1,826   2,593      142%
2004                1,290      1,232      2,324,734    2,217,082       402      1,233,459        32.63    3,068       1,800   1,001       56%
2005                1,368      1,348      2,378,655    2,353,755       475      2,218,701        35.23    4,671       1,746   1,645       94%
2006                1,495      1,459      2,767,586    2,649,969       482      1,319,742        33.05    2,738       1,817     905       50%
TOTAL               6,350      6,212     11,505,439   11,221,632     2,068      8,657,333        33.29    4,186       1,806   1,394       77%

ACCIDENT BENEFITS

2002                1,044      1,063       138,602      127,678        70         27,307          6.58       390       120      26        21%
2003                1,152      1,111       160,736      152,361        86         76,408          7.74       888       137      69        50%
2004                1,290      1,232       183,091      174,144        91         68,485          7.39       753       141      56        39%
2005                1,368      1,348       186,583      185,316       115        171,672          8.53     1,493       137     127        93%
2006                1,495      1,459       218,274      208,843        86         61,546          5.90       716       143      42        29%
TOTAL               6,350      6,212       887,286      848,342       448        405,416          7.21       905       137      65        48%

UNDERINSURED MOTORIST

2002                  -          -              -            -         -               -           N/A      N/A        N/A     N/A         N/A
2003                  -              0          -                0     -               -           -        N/A          2     -           0%
2004                  -              0          -                1     -               -           -        N/A          2     -           0%
2005                  -          -              -            -         -               -           N/A      N/A        N/A     N/A         N/A
2006                  -          -              -            -         -               -           N/A      N/A        N/A     N/A         N/A
TOTAL                 -              0          -                1     -               -           -        N/A          2     -           0%



                                                                                                                                                 2BII - 25
                                                                                                             EXHIBIT II - CLASSIFICATION

                                                   CLASS 26 - BUSES 161 KM - 550 KM

                                                     PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                           CLAIM                       CLAIM
                                                                         CLAIMS AND   FREQUENCY                         COST
              NUMBER OF NUMBER OF                                       ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED       WRITTEN      EARNED   NUMBER      EXPENSES       EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES      PREMIUMS    PREMIUMS OF CLAIMS     INCURRED      VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                  210        203     458,399     408,561       52       195,473        25.65    3,759       2,016    964        48%
2003                  183        187     366,463     386,503       48        74,798        25.73    1,558       2,072    401        19%
2004                  195        193     394,630     383,638       45       186,228        23.27    4,138       1,984    963        49%
2005                  235        220     436,991     423,877       42       101,736        19.11    2,422       1,928    463        24%
2006                  253        244     481,512     458,956       30        43,323        12.31    1,444       1,883    178         9%
TOTAL               1,075      1,046   2,137,995   2,061,534      217       601,558        20.74    2,772       1,971    575        29%

THIRD PARTY TOTAL

2002                  210        203     522,145     463,118       52       195,473        25.65    3,759       2,285    964        42%
2003                  183        187     435,327     452,248       48        74,798        25.73    1,558       2,424    401        17%
2004                  195        193     458,264     449,105       45       186,228        23.27    4,138       2,323    963        41%
2005                  235        220     506,386     491,033       42       101,736        19.11    2,422       2,234    463        21%
2006                  253        244     551,386     528,279       30        43,323        12.31    1,444       2,168    178         8%
TOTAL               1,075      1,046   2,473,508   2,383,783      217       601,558        20.74    2,772       2,279    575        25%

ACCIDENT BENEFITS

2002                  210        203      32,573      27,400        5         1,853         2.47      371        135       9         7%
2003                  183        187      30,517      30,239        7         3,062         3.75      437        162      16        10%
2004                  195        193      32,719      31,835       10         1,908         5.17      191        165      10         6%
2005                  235        220      36,276      35,116        8         6,636         3.64      830        160      30        19%
2006                  253        244      39,877      38,074        5           500         2.05      100        156       2         1%
TOTAL               1,075      1,046     171,962     162,663       35        13,959         3.35      399        155      13         9%

UNDERINSURED MOTORIST

2002                  -          -           -           -        -             -            N/A      N/A        N/A     N/A         N/A
2003                  -          -           -           -        -             -            N/A      N/A        N/A     N/A         N/A
2004                  -          -           -           -        -             -            N/A      N/A        N/A     N/A         N/A
2005                  -          -           -           -        -             -            N/A      N/A        N/A     N/A         N/A
2006                  -          -           -           -        -             -            N/A      N/A        N/A     N/A         N/A
TOTAL                 -          -           -           -        -             -            N/A      N/A        N/A     N/A         N/A



                                                                                                                                           2BII - 26
                                                                                                               EXHIBIT II - CLASSIFICATION

                                                     CLASS 27 - BUSES > 550 KM

                                                   PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                             CLAIM                       CLAIM
                                                                         CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                       ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED     WRITTEN      EARNED   NUMBER        EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES    PREMIUMS    PREMIUMS OF CLAIMS       INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                  155      160     468,954     485,926       52         595,891          32.48    11,459      3,035   3,722      123%
2003                   37       70      64,128     179,898       10          90,917          14.35     9,092      2,582   1,305       51%
2004                   48       44      99,141      86,250        1           4,018           2.27     4,018      1,958      91        5%
2005                   41       44      77,912      86,896        6          58,694          13.64     9,782      1,975   1,334       68%
2006                   49       44     101,561      89,358        1           1,559           2.30     1,559      2,053      36        2%
TOTAL                 329      361     811,696     928,328       70         751,080          19.37    10,730      2,569   2,079       81%

THIRD PARTY TOTAL

2002                  155      160     528,798     546,655       52         595,891          32.48    11,459      3,415   3,722      109%
2003                   37       70      73,968     202,179       10          90,917          14.35     9,092      2,902   1,305       45%
2004                   48       44     112,925      98,529        1           4,018           2.27     4,018      2,237      91        4%
2005                   41       44      91,444     100,449        6          58,694          13.64     9,782      2,284   1,334       58%
2006                   49       44     116,845     103,276        1           1,559           2.30     1,559      2,373      36        2%
TOTAL                 329      361     923,980   1,051,088       70         751,080          19.37    10,730      2,909   2,079       71%

ACCIDENT BENEFITS

2002                  155      160      32,558      31,648          2            476          1.25      238        198          3      2%
2003                   37       70       5,953      13,592          1              45         1.44       45        195          1      0%
2004                   48       44       8,613       7,622      -                -             -        N/A        173      -          0%
2005                   41       44       6,749       7,608      -                -             -        N/A        173      -          0%
2006                   49       44       8,669       7,605      -                -             -        N/A        175      -          0%
TOTAL                 329      361      62,542      68,076          3            521          0.83      174        188          1      1%

UNDERINSURED MOTORIST

2002                  -        -           -           -        -                -             N/A      N/A        N/A     N/A         N/A
2003                  -        -           -           -        -                -             N/A      N/A        N/A     N/A         N/A
2004                  -        -           -           -        -                -             N/A      N/A        N/A     N/A         N/A
2005                  -        -           -           -        -                -             N/A      N/A        N/A     N/A         N/A
2006                  -        -           -           -        -                -             N/A      N/A        N/A     N/A         N/A
TOTAL                 -        -           -           -        -                -             N/A      N/A        N/A     N/A         N/A



                                                                                                                                             2BII - 27
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                              CLASS 28 - BUSES,SCHOOL,PRIVATE AND RELIGIOUS

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                5,593       5,560    4,062,883    3,980,861      539      1,711,057         9.70    3,175        716     308        43%
2003                5,573       5,546    3,975,329    4,009,461      556      2,547,263        10.02    4,581        723     459        64%
2004                5,599       5,582    3,943,061    3,947,583      562      1,634,262        10.07    2,908        707     293        41%
2005                5,802       5,720    4,096,552    4,026,771      607      3,988,434        10.61    6,571        704     697        99%
2006                5,830       5,832    4,291,860    4,193,359      554      1,497,906         9.50    2,704        719     257        36%
TOTAL              28,396      28,240   20,369,685   20,158,035    2,818     11,378,922         9.98    4,038        714     403        56%

THIRD PARTY TOTAL

2002                5,593       5,560    4,494,723    4,410,301      539      1,711,057         9.70    3,175        793     308        39%
2003                5,573       5,546    4,568,724    4,528,401      556      2,547,263        10.02    4,581        816     459        56%
2004                5,599       5,582    4,477,055    4,507,514      562      1,634,262        10.07    2,908        808     293        36%
2005                5,802       5,720    4,643,133    4,564,046      607      3,988,434        10.61    6,571        798     697        87%
2006                5,830       5,832    4,836,618    4,739,077      554      1,497,906         9.50    2,704        813     257        32%
TOTAL              28,396      28,240   23,020,253   22,749,340    2,818     11,378,922         9.98    4,038        806     403        50%

ACCIDENT BENEFITS

2002                5,593       5,560      288,120      259,172       68        63,932          1.22      940         47      11        25%
2003                5,573       5,546      308,584      298,725       86       105,997          1.55    1,233         54      19        35%
2004                5,599       5,582      306,124      306,176       84        68,939          1.50      821         55      12        23%
2005                5,802       5,720      318,775      312,572       57       131,678          1.00    2,310         55      23        42%
2006                5,830       5,832      332,866      325,903       54        39,003          0.93      722         56       7        12%
TOTAL              28,396      28,240    1,554,469    1,502,549      349       409,549          1.24    1,173         53      15        27%

UNDERINSURED MOTORIST

2002                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2003                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2004                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2005                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2006                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
TOTAL                 -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A



                                                                                                                                               2BII - 28
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                                         CLASS 29 - TAXIS AND LIMOS

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                2,494       2,493   11,435,799   10,560,855    1,686     11,404,221        67.62    6,764       4,235   4,574      108%
2003                2,452       2,490   12,660,505   12,126,664    1,740      9,479,054        69.88    5,448       4,870   3,807       78%
2004                2,521       2,507   12,130,490   12,754,574    1,662      8,670,510        66.28    5,217       5,087   3,458       68%
2005                2,595       2,560   11,733,395   11,907,096    1,608      8,448,943        62.81    5,254       4,651   3,300       71%
2006                2,671       2,637   11,806,435   11,512,092    1,524      7,824,059        57.80    5,134       4,366   2,967       68%
TOTAL              12,733      12,687   59,766,624   58,861,281    8,220     45,826,787        64.79    5,575       4,639   3,612       78%

THIRD PARTY TOTAL

2002                2,494       2,493   11,724,306   10,847,382    1,686     11,404,221        67.62    6,764       4,350   4,574      105%
2003                2,452       2,490   13,088,535   12,500,421    1,740      9,479,054        69.88    5,448       5,020   3,807       76%
2004                2,521       2,507   12,752,976   13,282,351    1,662      8,670,510        66.28    5,217       5,297   3,458       65%
2005                2,595       2,560   12,472,053   12,634,920    1,608      8,448,943        62.81    5,254       4,936   3,300       67%
2006                2,671       2,637   12,801,089   12,442,668    1,524      7,824,059        57.80    5,134       4,719   2,967       63%
TOTAL              12,733      12,687   62,838,959   61,707,742    8,220     45,826,787        64.79    5,575       4,864   3,612       74%

ACCIDENT BENEFITS

2002                2,494       2,493      726,110      593,876      552        812,781        22.14    1,472        238     326       137%
2003                2,452       2,490      885,232      802,059      606        823,929        24.34    1,360        322     331       103%
2004                2,521       2,507      853,173      894,702      568        878,812        22.65    1,547        357     350        98%
2005                2,595       2,560      829,765      839,784      605      1,329,569        23.63    2,198        328     519       158%
2006                2,671       2,637      841,581      819,749      564        611,572        21.39    1,084        311     232        75%
TOTAL              12,733      12,687    4,135,861    3,950,171    2,895      4,456,662        22.82    1,539        311     351       113%

UNDERINSURED MOTORIST

2002                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2003                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2004                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2005                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
2006                  -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A
TOTAL                 -           -            -            -        -              -            N/A      N/A        N/A     N/A         N/A



                                                                                                                                               2BII - 29
                                                                                                                 EXHIBIT II - CLASSIFICATION

                                                    CLASS 30 - COLLECTOR VEHICLES

                                                      PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                               CLAIM                       CLAIM
                                                                            CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                          ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN      EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS    PREMIUMS OF CLAIMS       INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               10,296       9,924     724,021     693,155       80          285,784         0.81     3,572        70      29        41%
2003               10,940      10,654     748,494     737,613       87          373,859         0.82     4,297        69      35        51%
2004               11,858      11,437     811,099     782,053       83          233,058         0.73     2,808        68      20        30%
2005               12,448      12,149     848,464     830,070       65          184,320         0.54     2,836        68      15        22%
2006               13,916      13,228     996,993     923,444       74          361,412         0.56     4,884        70      27        39%
TOTAL              59,459      57,392   4,129,071   3,966,336      389        1,438,433         0.68     3,698        69      25        36%

THIRD PARTY TOTAL

2002               10,296       9,924     882,087     846,251       80          285,784         0.81     3,572        85          29    34%
2003               10,940      10,654     914,903     900,236       87          373,859         0.82     4,297        84          35    42%
2004               11,858      11,437     993,306     957,074       83          233,058         0.73     2,808        84          20    24%
2005               12,448      12,149   1,040,995   1,017,248       65          184,320         0.54     2,836        84          15    18%
2006               13,916      13,228   1,214,364   1,128,821       74          363,952         0.56     4,918        85          28    32%
TOTAL              59,459      57,392   5,045,655   4,849,630      389        1,440,973         0.68     3,704        85          25    30%

ACCIDENT BENEFITS

2002               10,296       9,924     129,977     113,594       14           8,279          0.14       591        11          1      7%
2003               10,940      10,654     134,226     132,708       26          24,987          0.24       961        12          2     19%
2004               11,858      11,437     152,406     144,323       21          31,322          0.18     1,492        13          3     22%
2005               12,448      12,149     161,307     157,513       20          13,531          0.16       677        13          1      9%
2006               13,916      13,228     189,719     177,875       20          67,935          0.15     3,397        13          5     38%
TOTAL              59,459      57,392     767,635     726,012      101         146,055          0.18     1,446        13          3     20%

UNDERINSURED MOTORIST

2002               10,296       9,924     187,030     177,005      -               -             -         N/A        18      -          0%
2003               10,940      10,654     200,238     194,431      -               -             -         N/A        18      -          0%
2004               11,858      11,437     216,960     209,186      -               -             -         N/A        18      -          0%
2005               12,448      12,149     226,807     221,752      -               -             -         N/A        18      -          0%
2006               13,916      13,228     272,193     250,433          1       150,000          0.01   150,000        19          11    60%
TOTAL              59,459      57,392   1,103,228   1,052,806          1       150,000          0.00   150,000        18           3    14%



                                                                                                                                               2BII - 30
                                                                                                                               EXHIBIT III - TERRITORIAL

                                                              TERRITORY 01 - LOWER MAINLAND

                                                                 PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                          CLAIM                       CLAIM
                                                                                      CLAIMS AND     FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                    ADJUSTMENT          PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED             WRITTEN          EARNED   NUMBER         EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES            PREMIUMS        PREMIUMS OF CLAIMS        INCURRED        VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002            1,101,629      1,094,760     696,761,408     673,843,237   138,977     610,327,632        12.69     4,392       616      557        91%
2003            1,117,528      1,108,409     728,015,952     711,796,869   135,264     628,702,253        12.20     4,648       642      567        88%
2004            1,141,071      1,130,618     743,968,723     737,004,388   135,011     614,727,251        11.94     4,553       652      544        83%
2005            1,170,528      1,155,945     760,228,391     753,379,225   136,133     576,171,214        11.78     4,232       652      498        76%
2006            1,198,194      1,187,547     817,312,476     783,655,248   131,417     416,392,455        11.07     3,168       660      351        53%
TOTAL           5,728,950      5,677,278   3,746,286,950   3,659,678,967   676,802   2,846,320,804        11.92     4,206       645      501        78%

THIRD PARTY TOTAL

2002            1,101,629      1,094,760     838,889,723     815,548,239   138,977     710,299,101        12.69     5,111       745      649        87%
2003            1,117,528      1,108,409     873,584,838     855,486,933   135,264     715,557,076        12.20     5,290       772      646        84%
2004            1,141,071      1,130,618     892,610,862     884,341,590   135,011     697,483,006        11.94     5,166       782      617        79%
2005            1,170,528      1,155,945     913,317,591     904,171,287   136,133     654,075,221        11.78     4,805       782      566        72%
2006            1,198,194      1,187,547     974,782,038     939,745,662   131,417     459,656,598        11.07     3,498       791      387        49%
TOTAL           5,728,950      5,677,278   4,493,185,052   4,399,293,710   676,802   3,237,071,002        11.92     4,783       775      570        74%

ACCIDENT BENEFITS

2002            1,101,629      1,094,760     75,817,332      65,187,138     33,906     51,416,102          3.10     1,516        60       47        79%
2003            1,117,528      1,108,409     80,279,729      77,915,400     34,413     54,360,211          3.10     1,580        70       49        70%
2004            1,141,071      1,130,618     82,356,940      81,484,031     33,300     61,298,979          2.95     1,841        72       54        75%
2005            1,170,528      1,155,945     84,191,673      83,336,286     33,400     58,943,732          2.89     1,765        72       51        71%
2006            1,198,194      1,187,547     90,565,991      87,458,168     31,525     41,826,812          2.65     1,327        74       35        48%
TOTAL           5,728,950      5,677,278    413,211,665     395,381,023    166,544    267,845,837          2.93     1,608        70       47        68%

UNDERINSURED MOTORIST

2002            1,097,871      1,091,005     20,937,758      20,265,913        59       5,438,371          0.01    92,176        19        5        27%
2003            1,113,876      1,104,700     21,568,037      21,232,045        56       7,098,962          0.01   126,767        19        6        33%
2004            1,137,275      1,126,858     21,993,183      21,805,111        64      18,894,119          0.01   295,221        19       17        87%
2005            1,166,512      1,152,007     22,471,368      22,232,926        46      16,639,766          0.00   361,734        19       14        75%
2006            1,194,003      1,183,414     24,460,598      23,426,678        19       4,105,166          0.00   216,061        20        3        18%
TOTAL           5,709,537      5,657,984    111,430,944     108,962,673       244      52,176,384          0.00   213,838        19        9        48%



                                                                                                                                                           2BIII - 1
                                                                                                                          EXHIBIT III - TERRITORIAL

                                                       TERRITORY 02 - MAPLE RIDGE/PITT MEADOWS

                                                              PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                       CLAIM
                                                                                  CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED          WRITTEN           EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES         PREMIUMS         PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               53,327       52,267    27,581,506       26,350,193    4,948     29,548,350         9.47     5,972       504      565       112%
2003               55,803       54,567    30,265,386       28,953,078    5,040     30,940,314         9.24     6,139       531      567       107%
2004               57,839       56,970    31,381,954       30,878,830    5,064     30,429,529         8.89     6,009       542      534        99%
2005               59,461       58,726    32,097,013       31,828,091    5,230     27,057,886         8.91     5,174       542      461        85%
2006               61,557       60,580    34,825,630       33,173,433    5,131     18,584,799         8.47     3,622       548      307        56%
TOTAL             287,988      283,111   156,151,489      151,183,625   25,413    136,560,878         8.98     5,374       534      482        90%

THIRD PARTY TOTAL

2002               53,327       52,267    33,300,576       31,954,736    4,948     35,251,647         9.47     7,124       611      674       110%
2003               55,803       54,567    36,316,440       34,836,471    5,040     35,053,144         9.24     6,955       638      642       101%
2004               57,839       56,970    37,627,004       37,029,504    5,064     35,627,614         8.89     7,035       650      625        96%
2005               59,461       58,726    38,479,637       38,149,830    5,230     30,872,062         8.91     5,903       650      526        81%
2006               61,557       60,580    41,398,247       39,662,014    5,131     20,922,575         8.47     4,078       655      345        53%
TOTAL             287,988      283,111   187,121,904      181,632,555   25,413    157,727,043         8.98     6,207       642      557        87%

ACCIDENT BENEFITS

2002               53,327       52,267     3,688,106        3,078,607    1,536      3,729,299         2.94     2,428        59       71       121%
2003               55,803       54,567     4,043,273        3,866,298    1,589      4,068,424         2.91     2,560        71       75       105%
2004               57,839       56,970     4,210,535        4,143,411    1,658      4,410,368         2.91     2,660        73       77       106%
2005               59,461       58,726     4,320,105        4,274,921    1,593      3,917,517         2.71     2,459        73       67        92%
2006               61,557       60,580     4,709,931        4,518,800    1,563      2,583,950         2.58     1,653        75       43        57%
TOTAL             287,988      283,111    20,971,950       19,882,037    7,939     18,709,557         2.80     2,357        70       66        94%

UNDERINSURED MOTORIST

2002               53,222       52,166       955,202          914,153        2        239,000         0.00   119,500        18        5        26%
2003               55,696       54,469     1,019,459          987,887        6      1,482,956         0.01   247,159        18       27       150%
2004               57,731       56,865     1,054,457        1,039,304        4        740,000         0.01   185,000        18       13        71%
2005               59,352       58,616     1,079,397        1,067,620        1        250,000         0.00   250,000        18        4        23%
2006               61,441       60,470     1,187,410        1,130,448        1         20,000         0.00    20,000        19        0         2%
TOTAL             287,442      282,585     5,295,925        5,139,412       14      2,731,956         0.00   195,140        18       10        53%



                                                                                                                                                      2BIII - 2
                                                                                                                          EXHIBIT III - TERRITORIAL

                                                      TERRITORY 03 - SQUAMISH WHISTLER AREA

                                                            PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                       CLAIM
                                                                                  CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN          EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS        PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               20,260       19,958   10,735,914      10,456,550    1,740       10,412,917         8.72     5,984       524      522       100%
2003               20,427       20,331   11,489,672      11,140,188    1,681        7,087,545         8.27     4,216       548      349        64%
2004               20,687       20,636   11,704,824      11,649,677    1,573        7,656,731         7.62     4,868       565      371        66%
2005               20,738       20,826   11,646,381      11,759,498    1,490        7,632,191         7.15     5,122       565      366        65%
2006               21,130       20,946   12,415,576      11,910,780    1,553        5,459,584         7.41     3,516       569      261        46%
TOTAL             103,243      102,697   57,992,367      56,916,693    8,037       38,248,968         7.83     4,759       554      372        67%

THIRD PARTY TOTAL

2002               20,260       19,958   12,898,377      12,595,221    1,740       15,168,433         8.72     8,717       631      760       120%
2003               20,427       20,331   13,749,894      13,350,893    1,681        9,428,523         8.27     5,609       657      464        71%
2004               20,687       20,636   13,963,794      13,926,533    1,573       10,644,568         7.62     6,767       675      516        76%
2005               20,738       20,826   13,898,010      14,023,066    1,490       10,265,921         7.15     6,890       673      493        73%
2006               21,130       20,946   14,759,914      14,211,933    1,553        5,459,584         7.41     3,516       679      261        38%
TOTAL             103,243      102,697   69,269,989      68,107,646    8,037       50,967,028         7.83     6,342       663      496        75%

ACCIDENT BENEFITS

2002               20,260       19,958    1,517,234       1,314,663      308        2,074,374         1.54     6,735        66      104       158%
2003               20,427       20,331    1,556,864       1,535,451      292        1,801,242         1.44     6,169        76       89       117%
2004               20,687       20,636    1,591,296       1,582,273      293        1,101,635         1.42     3,760        77       53        70%
2005               20,738       20,826    1,584,619       1,598,016      281        1,351,427         1.35     4,809        77       65        85%
2006               21,130       20,946    1,688,609       1,634,133      263          776,505         1.26     2,952        78       37        48%
TOTAL             103,243      102,697    7,938,622       7,664,535    1,437        7,105,183         1.40     4,944        75       69        93%

UNDERINSURED MOTORIST

2002               20,137       19,837      381,987         367,080          1       153,000          0.01   153,000        19           8     42%
2003               20,299       20,208      390,076         385,879          1       230,000          0.00   230,000        19          11     60%
2004               20,535       20,495      394,798         394,176          2       350,000          0.01   175,000        19          17     89%
2005               20,577       20,665      391,756         395,445      -               -             -         N/A        19      -           0%
2006               20,969       20,784      422,767         405,934      -               -             -         N/A        20      -           0%
TOTAL             102,516      101,990    1,981,384       1,948,513          4       733,000          0.00   183,250        19          7      38%



                                                                                                                                                      2BIII - 3
                                                                                                                      EXHIBIT III - TERRITORIAL

                                                 TERRITORY 04 - PEMBERTON AREA/HOPE AREA

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                 CLAIM                       CLAIM
                                                                              CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                            ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED        WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES       PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               10,503      10,249    4,331,223    4,212,487      679        4,265,181         6.62     6,282       411      416       101%
2003               10,592      10,540    4,388,881    4,364,222      685        4,718,920         6.50     6,889       414      448       108%
2004               10,989      10,882    4,524,145    4,494,469      663        3,559,877         6.09     5,369       413      327        79%
2005               11,023      11,013    4,529,720    4,533,378      607        3,156,826         5.51     5,201       412      287        70%
2006               11,265      11,188    4,799,593    4,651,951      624        2,153,572         5.58     3,451       416      192        46%
TOTAL              54,373      53,872   22,573,562   22,256,506    3,258       17,854,376         6.05     5,480       413      331        80%

THIRD PARTY TOTAL

2002               10,503      10,249    5,120,661    4,996,293      679        6,545,979         6.62     9,641       487      639       131%
2003               10,592      10,540    5,132,424    5,129,706      685        5,035,798         6.50     7,352       487      478        98%
2004               10,989      10,882    5,264,529    5,238,930      663        4,879,798         6.09     7,360       481      448        93%
2005               11,023      11,013    5,283,347    5,283,919      607        4,490,638         5.51     7,398       480      408        85%
2006               11,265      11,188    5,593,350    5,431,426      624        3,502,345         5.58     5,613       485      313        64%
TOTAL              54,373      53,872   26,394,311   26,080,273    3,258       24,454,558         6.05     7,506       484      454        94%

ACCIDENT BENEFITS

2002               10,503      10,249      579,319      513,939      161          676,413         1.57     4,201        50       66       132%
2003               10,592      10,540      572,471      574,043      138          441,277         1.31     3,198        54       42        77%
2004               10,989      10,882      593,019      589,069      137          510,364         1.26     3,725        54       47        87%
2005               11,023      11,013      593,104      593,664      147          468,508         1.33     3,187        54       43        79%
2006               11,265      11,188      629,778      612,580      134          369,939         1.20     2,761        55       33        60%
TOTAL              54,373      53,872    2,967,691    2,883,295      717        2,466,502         1.33     3,440        54       46        86%

UNDERINSURED MOTORIST

2002               10,446      10,190     186,637      178,112       -               -             -         N/A        17      -           0%
2003               10,535      10,482     190,433      188,694       -               -             -         N/A        18      -           0%
2004               10,929      10,827     195,131      194,477           1       191,463          0.01   191,463        18          18     98%
2005               10,970      10,960     195,091      195,305           1        65,000          0.01    65,000        18           6     33%
2006               11,213      11,137     208,083      201,610           1       170,500          0.01   170,500        18          15     85%
TOTAL              54,093      53,596     975,375      958,198           3       426,963          0.01   142,321        18           8     45%



                                                                                                                                                  2BIII - 4
                                                                                                                       EXHIBIT III - TERRITORIAL

                                                          TERRITORY 05 - FRASER VALLEY

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                             ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED          WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES         PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              167,771      165,488    81,431,803    77,362,187   13,839     79,744,297         8.36     5,762       467      482       103%
2003              172,751      170,049    88,654,747    85,082,388   13,397     79,404,813         7.88     5,927       500      467        93%
2004              180,009      176,828    92,167,293    90,572,157   13,899     79,712,013         7.86     5,735       512      451        88%
2005              186,791      183,719    95,175,080    93,968,321   14,535     67,696,586         7.91     4,657       511      368        72%
2006              193,299      190,619   102,787,916    98,551,961   14,112     51,079,628         7.40     3,620       517      268        52%
TOTAL             900,621      886,703   460,216,839   445,537,014   69,782    357,637,336         7.87     5,125       502      403        80%

THIRD PARTY TOTAL

2002              167,771      165,488    97,567,003    93,146,173   13,839     98,765,456         8.36     7,137       563      597       106%
2003              172,751      170,049   105,615,914   101,657,221   13,397     96,646,423         7.88     7,214       598      568        95%
2004              180,009      176,828   109,790,665   107,885,632   13,899     97,951,671         7.86     7,047       610      554        91%
2005              186,791      183,719   113,499,112   111,970,208   14,535     80,414,779         7.91     5,532       609      438        72%
2006              193,299      190,619   121,848,846   117,362,002   14,112     56,388,040         7.40     3,996       616      296        48%
TOTAL             900,621      886,703   548,321,540   532,021,236   69,782    430,166,370         7.87     6,164       600      485        81%

ACCIDENT BENEFITS

2002              167,771      165,488    10,366,363     9,015,388    3,950      9,438,516         2.39     2,389        54       57       105%
2003              172,751      170,049    11,219,274    10,793,995    3,969      9,764,754         2.33     2,460        63       57        90%
2004              180,009      176,828    11,730,596    11,515,284    4,162      9,464,175         2.35     2,274        65       54        82%
2005              186,791      183,719    12,135,252    11,963,159    4,130      9,224,455         2.25     2,234        65       50        77%
2006              193,299      190,619    13,147,635    12,678,267    4,039      6,724,030         2.12     1,665        67       35        53%
TOTAL             900,621      886,703    58,599,120    55,966,093   20,250     44,615,929         2.28     2,203        63       50        80%

UNDERINSURED MOTORIST

2002              167,177      164,893     2,965,425     2,856,749       12      2,180,384         0.01   181,699        17       13        76%
2003              172,164      169,459     3,114,988     3,037,739       10      1,832,124         0.01   183,212        18       11        60%
2004              179,408      176,220     3,227,137     3,177,616        8      1,176,200         0.00   147,025        18        7        37%
2005              186,156      183,088     3,328,661     3,282,385        9      2,095,000         0.00   232,778        18       11        64%
2006              192,675      189,986     3,635,164     3,482,698        6      2,501,172         0.00   416,862        18       13        72%
TOTAL             897,580      883,645    16,271,375    15,837,186       45      9,784,880         0.01   217,442        18       11        62%



                                                                                                                                                   2BIII - 5
                                                                                                                            EXHIBIT III - TERRITORIAL

                                                         TERRITORY 06 - THOMPSON OKANAGAN AREA

                                                               PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                       CLAIM
                                                                                    CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                  ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED            WRITTEN          EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES           PREMIUMS        PREMIUMS OF CLAIMS       INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              378,186        374,377   138,099,687     132,908,754    20,830    118,372,307         5.56     5,683       355      316        89%
2003              386,315        381,770   145,843,498     142,036,296    20,379    114,443,282         5.34     5,616       372      300        81%
2004              401,107        395,109   152,023,058     149,488,520    21,661    111,266,588         5.48     5,137       378      282        74%
2005              415,944        409,295   156,875,041     154,958,459    22,218    102,465,574         5.43     4,612       379      250        66%
2006              432,358        425,220   171,016,725     163,074,763    21,891     79,875,454         5.15     3,649       384      188        49%
TOTAL           2,013,910      1,985,770   763,858,009     742,466,793   106,979    526,423,205         5.39     4,921       374      265        71%

THIRD PARTY TOTAL

2002              378,186        374,377   166,584,625     160,920,316    20,830    150,601,551         5.56     7,230       430      402        94%
2003              386,315        381,770   175,154,119     170,871,908    20,379    140,166,010         5.34     6,878       448      367        82%
2004              401,107        395,109   182,629,480     179,575,666    21,661    132,608,089         5.48     6,122       454      336        74%
2005              415,944        409,295   189,098,830     186,390,993    22,218    131,992,672         5.43     5,941       455      322        71%
2006              432,358        425,220   205,075,119     196,405,569    21,891     89,638,595         5.15     4,095       462      211        46%
TOTAL           2,013,910      1,985,770   918,542,173     894,164,452   106,979    645,006,916         5.39     6,029       450      325        72%

ACCIDENT BENEFITS

2002              378,186        374,377    18,362,378      16,379,472     5,607     14,925,462         1.50     2,662        44       40        91%
2003              386,315        381,770    19,397,487      18,903,355     5,464     14,746,921         1.43     2,699        50       39        78%
2004              401,107        395,109    20,192,374      19,898,204     5,482     15,089,069         1.39     2,752        50       38        76%
2005              415,944        409,295    20,904,096      20,617,087     5,635     15,522,814         1.38     2,755        50       38        75%
2006              432,358        425,220    22,996,060      22,057,716     5,333      9,773,815         1.25     1,833        52       23        44%
TOTAL           2,013,910      1,985,770   101,852,395      97,855,835    27,521     70,058,081         1.39     2,546        49       35        72%

UNDERINSURED MOTORIST

2002              376,962        373,140     6,329,388       6,129,933       20       2,131,052         0.01   106,553        16        6        35%
2003              385,116        380,558     6,587,769       6,460,494       15       3,400,904         0.00   226,727        17        9        53%
2004              399,861        393,864     6,827,614       6,731,087        9         986,866         0.00   109,652        17        3        15%
2005              414,653        408,004     7,041,709       6,945,642       14       3,776,095         0.00   269,721        17        9        54%
2006              431,034        423,894     7,737,920       7,397,092        1         350,000         0.00   350,000        17        1         5%
TOTAL           2,007,626      1,979,461    34,524,400      33,664,249       59      10,644,916         0.00   180,422        17        5        32%



                                                                                                                                                        2BIII - 6
                                                                                                                       EXHIBIT III - TERRITORIAL

                                                            TERRITORY 07 - KOOTENAYS

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                             ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED          WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES         PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              124,410      123,958    41,720,617    40,946,373    5,283     27,658,768         4.26     5,235       330      223        68%
2003              124,414      124,335    42,732,458    42,236,883    4,885     25,435,249         3.93     5,207       340      205        60%
2004              127,769      126,447    43,821,125    43,391,865    4,654     22,316,472         3.68     4,795       343      176        51%
2005              130,577      129,201    44,534,762    44,250,252    4,572     21,596,960         3.54     4,724       342      167        49%
2006              134,626      132,852    47,962,954    46,043,794    4,528     17,962,446         3.41     3,967       347      135        39%
TOTAL             641,797      636,793   220,771,916   216,869,167   23,922    114,969,894         3.76     4,806       341      181        53%

THIRD PARTY TOTAL

2002              124,410      123,958    49,681,262    48,950,585    5,283     36,875,481         4.26     6,980       395      297        75%
2003              124,414      124,335    50,752,400    50,230,763    4,885     31,051,965         3.93     6,357       404      250        62%
2004              127,769      126,447    52,041,808    51,544,620    4,654     28,641,276         3.68     6,154       408      227        56%
2005              130,577      129,201    52,954,756    52,550,731    4,572     32,259,473         3.54     7,056       407      250        61%
2006              134,626      132,852    56,694,846    54,659,497    4,528     27,867,764         3.41     6,155       411      210        51%
TOTAL             641,797      636,793   262,125,072   257,936,196   23,922    156,695,958         3.76     6,550       405      246        61%

ACCIDENT BENEFITS

2002              124,410      123,958     5,597,661     5,064,588    1,103      5,410,763         0.89     4,905        41       44       107%
2003              124,414      124,335     5,589,596     5,592,221    1,088      4,546,139         0.88     4,178        45       37        81%
2004              127,769      126,447     5,752,582     5,702,943      990      4,591,802         0.78     4,638        45       36        81%
2005              130,577      129,201     5,858,802     5,813,307      979      4,516,279         0.76     4,613        45       35        78%
2006              134,626      132,852     6,360,242     6,136,287      977      3,410,710         0.74     3,491        46       26        56%
TOTAL             641,797      636,793    29,158,883    28,309,346    5,137     22,475,694         0.81     4,375        44       35        79%

UNDERINSURED MOTORIST

2002              123,885      123,423     2,045,937     1,993,933        9      1,001,742         0.01   111,305        16        8        50%
2003              123,869      123,805     2,080,400     2,065,578       10        874,032         0.01    87,403        17        7        42%
2004              127,240      125,915     2,126,273     2,109,268        7        740,000         0.01   105,714        17        6        35%
2005              130,040      128,662     2,160,099     2,142,652       10      1,832,718         0.01   183,272        17       14        86%
2006              134,082      132,308     2,351,525     2,258,387        3      1,082,500         0.00   360,833        17        8        48%
TOTAL             639,116      634,112    10,764,234    10,569,818       39      5,530,993         0.01   141,820        17        9        52%



                                                                                                                                                   2BIII - 7
                                                                                                                       EXHIBIT III - TERRITORIAL

                                                        TERRITORY 08 - CARIBOO AREA

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                             ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               40,565       40,582   15,657,278   15,288,468    1,683        9,283,224         4.15     5,516       377      229        61%
2003               40,451       40,413   16,051,815   15,824,407    1,652       10,127,029         4.09     6,130       392      251        64%
2004               41,644       41,241   16,454,757   16,328,640    1,698       12,037,268         4.12     7,089       396      292        74%
2005               43,142       42,489   16,914,451   16,745,793    1,681        9,768,349         3.96     5,811       394      230        58%
2006               44,359       43,892   18,027,626   17,401,408    1,555        6,943,533         3.54     4,465       396      158        40%
TOTAL             210,162      208,617   83,105,927   81,588,715    8,269       48,159,402         3.96     5,824       391      231        59%

THIRD PARTY TOTAL

2002               40,565       40,582   18,612,933   18,253,442    1,683       10,031,173         4.15     5,960       450      247        55%
2003               40,451       40,413   18,904,186   18,718,828    1,652       11,023,435         4.09     6,673       463      273        59%
2004               41,644       41,241   19,223,470   19,148,707    1,698       19,874,127         4.12    11,704       464      482       104%
2005               43,142       42,489   19,724,268   19,512,624    1,681       12,106,435         3.96     7,202       459      285        62%
2006               44,359       43,892   20,952,051   20,299,450    1,555       13,452,981         3.54     8,651       462      306        66%
TOTAL             210,162      208,617   97,416,908   95,933,051    8,269       66,488,152         3.96     8,041       460      319        69%

ACCIDENT BENEFITS

2002               40,565       40,582    2,096,924    1,889,601      364          816,333         0.90     2,243        47       20        43%
2003               40,451       40,413    2,151,376    2,120,518      408        1,535,324         1.01     3,763        52       38        72%
2004               41,644       41,241    2,206,639    2,190,448      370        2,096,066         0.90     5,665        53       51        96%
2005               43,142       42,489    2,267,374    2,245,654      386        1,015,733         0.91     2,631        53       24        45%
2006               44,359       43,892    2,431,172    2,358,200      368        1,059,779         0.84     2,880        54       24        45%
TOTAL             210,162      208,617   11,153,485   10,804,421    1,896        6,523,235         0.91     3,441        52       31        60%

UNDERINSURED MOTORIST

2002               40,372       40,380      639,092      627,243          1            -           0.00       -          16      -           0%
2003               40,273       40,228      640,306      637,793          2            274         0.00       137        16          0       0%
2004               41,465       41,060      652,123      648,224          1        390,000         0.00   390,000        16          9      60%
2005               42,964       42,310      667,646      661,456      -                -            -         N/A        16      -           0%
2006               44,189       43,715      721,029      695,381          2        680,000         0.00   340,000        16          16     98%
TOTAL             209,264      207,693    3,320,196    3,270,096          6      1,070,274         0.00   178,379        16           5     33%



                                                                                                                                                   2BIII - 8
                                                                                                                       EXHIBIT III - TERRITORIAL

                                                       TERRITORY 09 - PRINCE GEORGE AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                             ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED          WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES         PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              114,166      114,135    41,900,263    41,768,638    6,606     31,015,002         5.79     4,695       366      272        74%
2003              115,178      114,738    41,801,467    41,851,151    6,370     30,818,063         5.55     4,838       365      269        74%
2004              117,418      116,748    42,637,899    42,358,060    5,966     28,070,170         5.11     4,705       363      240        66%
2005              121,589      119,806    43,927,151    43,445,707    5,758     24,694,499         4.81     4,289       363      206        57%
2006              124,513      123,526    46,825,082    45,125,394    6,043     20,648,120         4.89     3,417       365      167        46%
TOTAL             592,865      588,952   217,091,862   214,548,950   30,743    135,245,854         5.22     4,399       364      230        63%

THIRD PARTY TOTAL

2002              114,166      114,135    49,939,267    49,914,832    6,606     41,624,498         5.79     6,301       437      365        83%
2003              115,178      114,738    49,633,577    49,794,098    6,370     39,035,248         5.55     6,128       434      340        78%
2004              117,418      116,748    50,573,122    50,260,876    5,966     38,415,542         5.11     6,439       431      329        76%
2005              121,589      119,806    52,121,694    51,499,957    5,758     35,005,087         4.81     6,079       430      292        68%
2006              124,513      123,526    55,351,340    53,539,790    6,043     24,887,786         4.89     4,118       433      201        46%
TOTAL             592,865      588,952   257,619,000   255,009,553   30,743    178,968,161         5.22     5,821       433      304        70%

ACCIDENT BENEFITS

2002              114,166      114,135     5,533,199     5,027,511    1,396      4,645,597         1.22     3,328        44       41        92%
2003              115,178      114,738     5,516,252     5,525,571    1,457      3,137,629         1.27     2,153        48       27        57%
2004              117,418      116,748     5,613,594     5,589,325    1,403      4,221,037         1.20     3,009        48       36        76%
2005              121,589      119,806     5,770,812     5,706,990    1,225      3,012,750         1.02     2,459        48       25        53%
2006              124,513      123,526     6,231,784     6,031,592    1,364      2,304,657         1.10     1,690        49       19        38%
TOTAL             592,865      588,952    28,665,641    27,880,989    6,845     17,321,671         1.16     2,531        47       29        62%

UNDERINSURED MOTORIST

2002              113,732      113,686     1,889,199     1,846,646        5        802,853         0.00   160,571        16        7        43%
2003              114,732      114,284     1,927,565     1,910,598        6      1,118,200         0.01   186,367        17       10        59%
2004              116,960      116,288     1,956,325     1,948,100        5        748,099         0.00   149,620        17        6        38%
2005              121,130      119,347     2,007,079     1,985,077        3        810,040         0.00   270,013        17        7        41%
2006              124,072      123,080     2,177,423     2,095,759        6      1,055,000         0.00   175,833        17        9        50%
TOTAL             590,626      586,686     9,957,591     9,786,181       25      4,534,192         0.00   181,368        17        8        46%



                                                                                                                                                   2BIII - 9
                                                                                                                       EXHIBIT III - TERRITORIAL

                                                      TERRITORY 10 - NORTHERN COAST

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                             ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               42,143       42,386   14,969,362   15,339,770    1,833        8,090,120         4.32     4,414       362      191        53%
2003               41,534       41,824   13,997,743   14,409,260    1,739        7,669,927         4.16     4,411       345      183        53%
2004               41,712       41,724   14,090,051   14,091,878    1,691        7,300,521         4.05     4,317       338      175        52%
2005               42,144       41,910   14,172,698   14,159,087    1,572        6,588,276         3.75     4,191       338      157        47%
2006               42,573       42,354   15,021,120   14,472,629    1,576        4,089,838         3.72     2,595       342       97        28%
TOTAL             210,108      210,197   72,250,974   72,472,623    8,411       33,738,681         4.00     4,011       345      161        47%

THIRD PARTY TOTAL

2002               42,143       42,386   17,824,526   18,367,791    1,833        8,294,402         4.32     4,525       433      196        45%
2003               41,534       41,824   16,608,520   17,128,013    1,739        8,832,673         4.16     5,079       410      211        52%
2004               41,712       41,724   16,685,436   16,703,740    1,691        8,876,281         4.05     5,249       400      213        53%
2005               42,144       41,910   16,796,236   16,764,491    1,572        8,342,467         3.75     5,307       400      199        50%
2006               42,573       42,354   17,710,616   17,136,092    1,576        4,089,838         3.72     2,595       405       97        24%
TOTAL             210,108      210,197   85,625,334   86,100,128    8,411       38,435,661         4.00     4,570       410      183        45%

ACCIDENT BENEFITS

2002               42,143       42,386    2,216,228    2,035,437      385          977,845         0.91     2,540        48       23        48%
2003               41,534       41,824    2,063,686    2,126,501      363          866,349         0.87     2,387        51       21        41%
2004               41,712       41,724    2,073,580    2,077,514      350          828,597         0.84     2,367        50       20        40%
2005               42,144       41,910    2,093,846    2,086,324      313          769,263         0.75     2,458        50       18        37%
2006               42,573       42,354    2,224,233    2,159,053      285          307,945         0.67     1,081        51        7        14%
TOTAL             210,108      210,197   10,671,573   10,484,829    1,696        3,749,999         0.81     2,211        50       18        36%

UNDERINSURED MOTORIST

2002               41,817       42,063      690,415      680,112      -               -             -         N/A        16      -           0%
2003               41,230       41,519      689,605      690,146          1        23,935          0.00    23,935        17          1       3%
2004               41,410       41,418      687,549      689,946          1           -            0.00       -          17      -           0%
2005               41,841       41,605      692,111      690,195          1       460,000          0.00   460,000        17          11     67%
2006               42,254       42,042      740,760      714,900      -               -             -         N/A        17      -           0%
TOTAL             208,551      208,647    3,500,440    3,465,299          3       483,935          0.00   161,312        17          2      14%



                                                                                                                                                   2BIII - 10
                                                                                                                         EXHIBIT III - TERRITORIAL

                                                        TERRITORY 11 - PEACE RIVER AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                               ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED          WRITTEN        EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES         PREMIUMS      PREMIUMS OF CLAIMS        INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               51,983       51,447    18,387,946    18,330,413    2,447       14,957,204         4.76     6,112       356      291        82%
2003               53,935       52,949    18,674,292    18,501,312    2,516       11,704,502         4.75     4,652       349      221        63%
2004               56,022       55,398    19,598,198    19,316,913    2,498       11,936,810         4.51     4,779       349      215        62%
2005               60,670       58,550    21,285,370    20,531,663    2,531       11,535,823         4.32     4,558       351      197        56%
2006               64,590       63,147    23,624,177    22,464,668    2,600       10,599,796         4.12     4,077       356      168        47%
TOTAL             287,201      281,490   101,569,983    99,144,969   12,592       60,734,135         4.47     4,823       352      216        61%

THIRD PARTY TOTAL

2002               51,983       51,447    22,046,021    22,035,012    2,447       20,338,155         4.76     8,311       428      395        92%
2003               53,935       52,949    22,378,573    22,172,493    2,516       15,354,197         4.75     6,103       419      290        69%
2004               56,022       55,398    23,397,214    23,104,652    2,498       14,413,551         4.51     5,770       417      260        62%
2005               60,670       58,550    25,454,898    24,520,053    2,531       13,906,585         4.32     5,495       419      238        57%
2006               64,590       63,147    28,151,789    26,860,651    2,600       15,715,389         4.12     6,044       425      249        59%
TOTAL             287,201      281,490   121,428,495   118,692,861   12,592       79,727,877         4.47     6,332       422      283        67%

ACCIDENT BENEFITS

2002               51,983       51,447     2,518,653     2,276,670      425        2,187,554         0.83     5,147        44       43        96%
2003               53,935       52,949     2,471,354     2,485,514      447        1,901,653         0.84     4,254        47       36        77%
2004               56,022       55,398     2,595,210     2,559,582      452        1,733,599         0.82     3,835        46       31        68%
2005               60,670       58,550     2,799,842     2,709,729      433        1,865,460         0.74     4,308        46       32        69%
2006               64,590       63,147     3,124,949     2,988,498      424        2,404,259         0.67     5,670        47       38        80%
TOTAL             287,201      281,490    13,510,008    13,019,994    2,181       10,092,524         0.77     4,627        46       36        78%

UNDERINSURED MOTORIST

2002               51,760       51,222       840,774       813,892          3        173,387         0.01    57,796        16          3      21%
2003               53,707       52,726       868,156       852,091          1         51,564         0.00    51,564        16          1       6%
2004               55,778       55,167       908,186       895,754      -                -            -         N/A        16      -           0%
2005               60,423       58,307       976,643       945,393          1        198,000         0.00   198,000        16           3     21%
2006               64,327       62,882     1,083,807     1,040,174          3      2,741,000         0.00   913,667        17          44    264%
TOTAL             285,995      280,304     4,677,566     4,547,305          8      3,163,951         0.00   395,494        16          11     70%



                                                                                                                                                     2BIII - 11
                                                                                                                         EXHIBIT III - TERRITORIAL

                            TERRITORY 12 - SOUTHERN VANCOUVER ISLAND AND ALL OTHER ISLANDS OFF THE WEST COAST

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                               ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED            WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES           PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              250,340        247,555    93,357,813    92,752,410   16,843     72,814,825         6.80     4,323       375      294        79%
2003              256,768        252,933    93,116,365    92,936,188   16,453     78,588,883         6.50     4,777       367      311        85%
2004              264,244        261,011    96,323,536    94,976,104   16,742     69,485,884         6.41     4,150       364      266        73%
2005              270,516        267,136    98,366,166    97,349,713   17,045     60,664,976         6.38     3,559       364      227        62%
2006              275,644        273,726   105,043,487   101,200,974   16,537     44,311,071         6.04     2,680       370      162        44%
TOTAL           1,317,511      1,302,362   486,207,367   479,215,388   83,620    325,865,639         6.42     3,897       368      250        68%

THIRD PARTY TOTAL

2002              250,340        247,555   108,714,398   108,334,713   16,843     88,923,306         6.80     5,280       438      359        82%
2003              256,768        252,933   108,528,663   108,306,982   16,453     92,467,072         6.50     5,620       428      366        85%
2004              264,244        261,011   112,210,974   110,707,436   16,742     80,354,440         6.41     4,800       424      308        73%
2005              270,516        267,136   114,828,137   113,387,666   17,045     67,694,334         6.38     3,972       424      253        60%
2006              275,644        273,726   122,175,535   118,116,950   16,537     50,770,068         6.04     3,070       432      185        43%
TOTAL           1,317,511      1,302,362   566,457,707   558,853,747   83,620    380,209,220         6.42     4,547       429      292        68%

ACCIDENT BENEFITS

2002              250,340        247,555    12,505,666    11,305,034    3,956      8,651,534         1.60     2,187        46       35        77%
2003              256,768        252,933    12,237,352    12,318,176    3,960      8,821,929         1.57     2,228        49       35        72%
2004              264,244        261,011    12,765,102    12,553,616    3,895      8,920,853         1.49     2,290        48       34        71%
2005              270,516        267,136    13,069,764    12,915,739    4,119      7,156,678         1.54     1,737        48       27        55%
2006              275,644        273,726    13,999,550    13,558,322    3,727      5,803,937         1.36     1,557        50       21        43%
TOTAL           1,317,511      1,302,362    64,577,434    62,650,888   19,657     39,354,930         1.51     2,002        48       30        63%

UNDERINSURED MOTORIST

2002              249,438        246,669     4,481,112     4,328,160        7        960,000         0.00   137,143        18        4        22%
2003              255,847        252,015     4,698,078     4,585,895        7      2,394,436         0.00   342,062        18       10        52%
2004              263,311        260,080     4,840,630     4,780,635        7        673,969         0.00    96,281        18        3        14%
2005              269,541        266,184     4,947,119     4,887,555        4      1,716,000         0.00   429,000        18        6        35%
2006              274,666        272,741     5,337,213     5,138,560        5        471,988         0.00    94,398        19        2         9%
TOTAL           1,312,804      1,297,687    24,304,152    23,720,805       30      6,216,392         0.00   207,213        18        5        26%



                                                                                                                                                     2BIII - 12
                                                                                                                          EXHIBIT III - TERRITORIAL

                                           TERRITORY 13 - MIDDLE VANCOUVER ISLAND/SUNSHINE COAST AREA

                                                              PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                       CLAIM
                                                                                  CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                                ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED             WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES            PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002              256,764        253,404     98,322,771    96,838,852   13,615     72,351,922         5.37     5,314       382      286        75%
2003              263,621        259,756     98,776,297    98,302,095   13,390     75,467,557         5.15     5,636       378      291        77%
2004              275,937        270,519    103,910,992   101,654,958   14,195     75,479,739         5.25     5,317       376      279        74%
2005              285,404        280,923    107,049,728   105,796,651   14,438     63,947,985         5.14     4,429       377      228        60%
2006              294,380        290,990    115,522,096   110,903,502   14,060     48,818,768         4.83     3,472       381      168        44%
TOTAL           1,376,105      1,355,592    523,581,884   513,496,058   69,698    336,065,971         5.14     4,822       379      248        65%

THIRD PARTY TOTAL

2002              256,764        253,404    115,687,262   114,383,418   13,615     87,535,154         5.37     6,429       451      345        77%
2003              263,621        259,756    115,923,517   115,509,954   13,390     88,968,864         5.15     6,644       445      343        77%
2004              275,937        270,519    121,961,493   119,346,121   14,195    103,007,199         5.25     7,257       441      381        86%
2005              285,404        280,923    125,970,970   124,247,842   14,438     78,598,393         5.14     5,444       442      280        63%
2006              294,380        290,990    135,179,106   130,352,457   14,060     59,164,067         4.83     4,208       448      203        45%
TOTAL           1,376,105      1,355,592    614,722,348   603,839,791   69,698    417,273,676         5.14     5,987       445      308        69%

ACCIDENT BENEFITS

2002              256,764        253,404     12,654,159    11,499,062    3,662      8,209,306         1.45     2,242        45       32        71%
2003              263,621        259,756     13,515,286    13,099,219    3,708      9,139,254         1.43     2,465        50       35        70%
2004              275,937        270,519     14,275,185    13,964,182    3,716      9,400,542         1.37     2,530        52       35        67%
2005              285,404        280,923     14,749,988    14,550,725    3,624     11,245,420         1.29     3,103        52       40        77%
2006              294,380        290,990     15,928,363    15,424,765    3,443      7,955,262         1.18     2,311        53       27        52%
TOTAL           1,376,105      1,355,592     71,122,981    68,537,952   18,153     45,949,784         1.34     2,531        51       34        67%

UNDERINSURED MOTORIST

2002              255,916        252,545      4,297,888     4,149,874       13      2,468,392         0.01   189,876        16       10        59%
2003              262,761        258,906      4,500,007     4,398,424       19      3,546,395         0.01   186,652        17       14        81%
2004              275,078        269,654      4,710,662     4,618,699       14      3,533,128         0.01   252,366        17       13        76%
2005              284,539        280,041      4,856,955     4,789,592       10      2,819,106         0.00   281,911        17       10        59%
2006              293,492        290,090      5,284,584     5,079,217        3        210,000         0.00    70,000        18        1         4%
TOTAL           1,371,786      1,351,237     23,650,096    23,035,805       59     12,577,020         0.00   213,170        17        9        55%



                                                                                                                                                      2BIII - 13
                                                                                                                     EXHIBIT III - TERRITORIAL

                                                 TERRITORY 14 - NORTHERN VANCOUVER ISLAND

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                CLAIM                       CLAIM
                                                                             CLAIMS AND    FREQUENCY                         COST
              NUMBER OF NUMBER OF                                           ADJUSTMENT         PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE        WRITTEN    EARNED         WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR       VEHICLES  VEHICLES        PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES     CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               38,158       37,981   15,065,125   15,151,719    1,877     13,479,399         4.94     7,181       399      355        89%
2003               38,368       38,356   15,096,009   15,121,393    1,875     13,567,820         4.89     7,236       394      354        90%
2004               39,461       38,900   15,522,181   15,283,258    1,845     10,175,880         4.74     5,515       393      262        67%
2005               40,829       40,228   15,918,413   15,794,695    1,733     12,117,887         4.31     6,992       393      301        77%
2006               42,025       41,485   17,166,101   16,444,848    1,828      5,809,560         4.41     3,178       396      140        35%
TOTAL             198,840      196,950   78,767,829   77,795,913    9,158     55,150,547         4.65     6,022       395      280        71%

THIRD PARTY TOTAL

2002               38,158       37,981   18,057,426   18,203,116    1,877     17,584,661         4.94     9,368       479      463        97%
2003               38,368       38,356   18,111,754   18,122,480    1,875     17,751,857         4.89     9,468       472      463        98%
2004               39,461       38,900   18,688,777   18,380,273    1,845     14,843,386         4.74     8,045       473      382        81%
2005               40,829       40,228   19,227,176   19,037,136    1,733     13,829,081         4.31     7,980       473      344        73%
2006               42,025       41,485   20,627,585   19,853,352    1,828      6,669,941         4.41     3,649       479      161        34%
TOTAL             198,840      196,950   94,712,718   93,596,358    9,158     70,678,926         4.65     7,718       475      359        76%

ACCIDENT BENEFITS

2002               38,158       37,981    2,105,452    1,873,576      458      1,682,725         1.21     3,674        49       44        90%
2003               38,368       38,356    2,205,811    2,161,804      511      2,613,373         1.33     5,114        56       68       121%
2004               39,461       38,900    2,284,939    2,244,807      441      1,562,836         1.13     3,544        58       40        70%
2005               40,829       40,228    2,346,586    2,323,809      449      2,082,347         1.12     4,638        58       52        90%
2006               42,025       41,485    2,537,332    2,449,774      462        871,675         1.11     1,887        59       21        36%
TOTAL             198,840      196,950   11,480,120   11,053,770    2,321      8,812,956         1.18     3,797        56       45        80%

UNDERINSURED MOTORIST

2002               37,974       37,792      622,492      605,707        7      1,080,180         0.02   154,311        16       29       178%
2003               38,186       38,172      634,420      630,568        6      1,929,500         0.02   321,583        17       51       306%
2004               39,274       38,717      650,183      641,102        3      1,351,718         0.01   450,573        17       35       211%
2005               40,616       40,026      668,171      661,034        2      1,050,000         0.00   525,000        17       26       159%
2006               41,800       41,260      728,747      698,479        1          3,133         0.00     3,133        17        0         0%
TOTAL             197,851      195,966    3,304,013    3,236,890       19      5,414,530         0.01   284,975        17       28       167%



                                                                                                                                                 2BIII - 14
                                                                            EXHIBIT IV - DISTRIBUTION OF THE ACCIDENT YEAR PAID BY POLICY YEAR PAID

                                                            PROVINCE OF BRITISH COLUMBIA
Data as at December 31, 2006
                                                                                                                                                Basic BI & PD
                                     Basic BI Net Paid                                                Basic PD Net Paid                              Net Paid
Accident Year      Prior Year    Current Year       No Policy   Basic BI Total     Prior Year    Current Year        No Policy Basic PD Total     Grand Total
    1989          164,714,183     431,006,509       5,854,701     601,575,393      50,798,557     121,074,555          655,149   172,528,261      774,103,654
    1990          200,795,457     504,730,753       9,523,763     715,049,973      58,259,645     140,880,435          859,234   199,999,314      915,049,287
    1991          203,185,174     493,927,758      10,883,962     707,996,893      60,435,376     138,027,933          891,697   199,355,005      907,351,898
    1992          215,194,835     475,653,165      12,502,438     703,350,438      61,476,313     136,780,811          903,426   199,160,551      902,510,989
    1993          195,152,341     498,359,386      12,373,419     705,885,146      62,007,694     148,582,949        1,308,987   211,899,630      917,784,776
    1994          223,914,865     532,924,095      11,337,817     768,176,777      69,950,035     159,119,591          905,324   229,974,951      998,151,728
    1995          220,712,403     575,859,859      11,496,106     808,068,368      73,074,274     180,499,269        1,044,137   254,617,680    1,062,686,048
    1996          287,765,562     524,363,581      10,065,936     822,195,078     101,083,331     183,173,697        1,259,104   285,516,132    1,107,711,210
    1997          282,467,389     500,570,558      10,734,047     793,771,995     109,284,865     177,950,237        1,226,023   288,461,125    1,082,233,120
    1998          271,505,829     513,530,409       9,216,035     794,252,272     102,553,042     169,514,479          937,740   273,005,261    1,067,257,533
    1999          307,514,854     468,396,311       6,060,721     781,971,886     112,857,308     163,054,674        1,091,234   277,003,216    1,058,975,102
    2000          309,756,062     453,283,993       6,902,522     769,942,577     116,233,951     172,703,234        1,166,344   290,103,529    1,060,046,106
    2001          296,177,198     443,673,183       7,972,325     747,822,705     130,148,038     191,640,507        1,001,122   322,789,667    1,070,612,373
    2002          282,060,215     408,313,915       6,058,781     696,432,911     139,872,358     183,688,823          903,538   324,464,719    1,020,897,631
    2003          252,965,824     333,439,706       4,810,015     591,215,544     132,264,834     194,129,025          440,650   326,834,509      918,050,054
    2004          173,175,153     229,139,447       3,074,424     405,389,023     142,359,668     195,942,875          416,878   338,719,421      744,108,445
    2005          100,473,564     122,675,907       1,407,286     224,556,757     142,738,455     198,324,010          391,274   341,453,739      566,010,495
    2006           43,905,240      30,379,956         477,359      74,762,555     133,348,138     125,533,772          200,697   259,082,607      333,845,162

Total            4,031,436,146   7,540,228,490    140,751,656 11,712,416,292     1,798,745,882   2,980,620,877     15,602,558   4,794,969,317 16,507,385,609




                                                                                                                                                          2BIV - 1
                                                                                EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               PRIVATE PASSENGER AUTOMOBILE
                                                               TERRITORY 01 - LOWER MAINLAND

                                                                  PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                           CLAIM                       CLAIM
                                                                                       CLAIMS AND     FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                              ADJUSTMENT         PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED        WRITTEN          EARNED   NUMBER         EXPENSES         EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES      PREMIUMS        PREMIUMS OF CLAIMS        INCURRED        VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               963,178        954,114     618,395,139     599,009,473   124,118     531,041,718        13.01     4,279       628     557      89%
2003               980,239        970,278     644,385,840     630,703,293   121,057     556,000,380        12.48     4,593       650     573      88%
2004               998,411        989,778     657,186,927     651,008,678   120,454     549,642,595        12.17     4,563       658     555      84%
2005             1,019,767      1,008,891     669,712,617     664,587,498   120,954     502,087,755        11.99     4,151       659     498      76%
2006             1,039,407      1,032,021     717,636,515     688,437,980   116,790     366,558,206        11.32     3,139       667     355      53%
TOTAL            5,001,003      4,955,082   3,307,317,038   3,233,746,922   603,373   2,505,330,654        12.18     4,152       653     506      77%

THIRD PARTY TOTAL

2002               963,178        954,114     748,842,666     729,431,124   124,118     619,239,527        13.01     4,989       765     649      85%
2003               980,239        970,278     775,949,324     761,456,650   121,057     639,363,523        12.48     5,282       785     659      84%
2004               998,411        989,778     791,042,946     783,923,628   120,454     629,715,523        12.17     5,228       792     636      80%
2005             1,019,767      1,008,891     806,836,579     799,908,598   120,954     576,519,003        11.99     4,766       793     571      72%
2006             1,039,407      1,032,021     857,654,807     827,575,856   116,790     407,425,646        11.32     3,489       802     395      49%
TOTAL            5,001,003      4,955,082   3,980,326,322   3,902,295,856   603,373   2,872,263,222        12.18     4,760       788     580      74%

ACCIDENT BENEFITS

2002               963,178        954,114     69,076,305      59,020,400     31,654     45,721,677          3.32     1,444        62      48      77%
2003               980,239        970,278     73,127,717      70,910,152     32,208     49,160,898          3.32     1,526        73      51      69%
2004               998,411        989,778     74,748,554      73,948,081     31,203     55,750,502          3.15     1,787        75      56      75%
2005             1,019,767      1,008,891     76,202,733      75,469,411     31,241     52,985,575          3.10     1,696        75      53      70%
2006             1,039,407      1,032,021     81,685,132      78,895,739     29,435     37,415,824          2.85     1,271        76      36      47%
TOTAL            5,001,003      4,955,082    374,840,441     358,243,783    155,741    241,034,476          3.14     1,548        72      49      67%

UNDERINSURED MOTORIST

2002               963,178        954,104     19,410,671      18,748,459        54       5,302,466          0.01    98,194        20       6      28%
2003               980,239        970,276     19,991,174      19,677,699        48       6,171,768          0.00   128,579        20       6      31%
2004               998,411        989,777     20,346,117      20,177,647        59      16,757,986          0.01   284,034        20      17      83%
2005             1,019,767      1,008,891     20,741,174      20,539,384        38      13,100,466          0.00   344,749        20      13      64%
2006             1,039,407      1,032,021     22,554,262      21,592,706        18       4,072,166          0.00   226,231        21       4      19%
TOTAL            5,001,003      4,955,070    103,043,398     100,735,896       217      45,404,853          0.00   209,239        20       9      45%




                                                                                                                                                         2BV - 1
                                                                             EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                             PRIVATE PASSENGER AUTOMOBILE
                                                         TERRITORY 02 - MAPLE RIDGE/PITT MEADOWS

                                                                PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                       CLAIM
                                                                                    CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                           ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED      WRITTEN           EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES    PREMIUMS         PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                44,601        43,718    25,539,789       24,362,771    4,601     27,500,071        10.52     5,977       557     629     113%
2003                47,022        45,797    28,130,855       26,856,905    4,704     29,050,027        10.27     6,176       586     634     108%
2004                48,557        47,850    29,116,804       28,653,043    4,734     27,871,111         9.89     5,887       599     582      97%
2005                49,778        49,184    29,807,178       29,534,077    4,875     25,079,992         9.91     5,145       600     510      85%
2006                51,129        50,475    32,209,595       30,710,838    4,803     17,105,119         9.52     3,561       608     339      56%
TOTAL              241,087       237,024   144,804,221      140,117,634   23,717    126,606,320        10.01     5,338       591     534      90%

THIRD PARTY TOTAL

2002                44,601        43,718    30,878,938       29,594,680    4,601     33,203,369        10.52     7,217       677     759     112%
2003                47,022        45,797    33,736,309       32,325,178    4,704     33,162,857        10.27     7,050       706     724     103%
2004                48,557        47,850    34,881,404       34,336,431    4,734     32,434,770         9.89     6,851       718     678      94%
2005                49,778        49,184    35,698,427       35,366,118    4,875     27,851,408         9.91     5,713       719     566      79%
2006                51,129        50,475    38,229,817       36,674,743    4,803     19,391,824         9.52     4,037       727     384      53%
TOTAL              241,087       237,024   173,424,895      168,297,151   23,717    146,044,229        10.01     6,158       710     616      87%

ACCIDENT BENEFITS

2002                44,601        43,718     3,368,318        2,792,411    1,456      3,030,631         3.33     2,081        64      69     109%
2003                47,022        45,797     3,704,476        3,532,299    1,507      3,436,446         3.29     2,280        77      75      97%
2004                48,557        47,850     3,831,103        3,771,286    1,589      4,156,407         3.32     2,616        79      87     110%
2005                49,778        49,184     3,921,853        3,878,026    1,509      2,845,028         3.07     1,885        79      58      73%
2006                51,129        50,475     4,244,560        4,072,559    1,483      2,362,304         2.94     1,593        81      47      58%
TOTAL              241,087       237,024    19,070,310       18,046,581    7,544     15,830,815         3.18     2,098        76      67      88%

UNDERINSURED MOTORIST

2002                44,601        43,718       882,674          843,680        1        239,000         0.00   239,000        19       5      28%
2003                47,022        45,797       945,587          914,470        3      1,146,896         0.01   382,299        20      25     125%
2004                48,557        47,850       975,730          961,760        4        740,000         0.01   185,000        20      15      77%
2005                49,778        49,184       998,620          987,269        1        250,000         0.00   250,000        20       5      25%
2006                51,129        50,475     1,096,337        1,042,949        1         20,000         0.00    20,000        21       0       2%
TOTAL              241,087       237,023     4,898,948        4,750,128       10      2,395,896         0.00   239,590        20      10      50%




                                                                                                                                                     2BV - 2
                                                                           EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                           PRIVATE PASSENGER AUTOMOBILE
                                                        TERRITORY 03 - SQUAMISH WHISTLER AREA

                                                              PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                       CLAIM
                                                                                    CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                           ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN          EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS        PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                16,764        16,488    9,448,483       9,186,413    1,533        9,741,651         9.30     6,355       557     591      106%
2003                16,856        16,814   10,058,916       9,784,963    1,510        6,465,449         8.98     4,282       582     385       66%
2004                17,019        16,986   10,218,338      10,168,377    1,406        7,045,170         8.28     5,011       599     415       69%
2005                16,882        17,028   10,100,444      10,223,584    1,336        6,955,670         7.85     5,206       600     408       68%
2006                17,134        17,005   10,795,175      10,342,704    1,387        4,704,157         8.16     3,392       608     277       45%
TOTAL               84,656        84,321   50,621,356      49,706,040    7,172       34,912,095         8.51     4,868       589     414       70%

THIRD PARTY TOTAL

2002                16,764        16,488   11,366,746      11,086,464    1,533       14,399,789         9.30     9,393       672     873      130%
2003                16,856        16,814   12,016,803      11,729,005    1,510        8,806,426         8.98     5,832       698     524       75%
2004                17,019        16,986   12,174,763      12,135,397    1,406       10,033,007         8.28     7,136       714     591       83%
2005                16,882        17,028   12,030,240      12,167,643    1,336        9,589,399         7.85     7,178       715     563       79%
2006                17,134        17,005   12,818,566      12,324,266    1,387        4,704,157         8.16     3,392       725     277       38%
TOTAL               84,656        84,321   60,407,118      59,442,774    7,172       47,532,778         8.51     6,628       705     564       80%

ACCIDENT BENEFITS

2002                16,764        16,488    1,350,278       1,159,679      289        2,062,640         1.75     7,137        70     125      178%
2003                16,856        16,814    1,373,730       1,358,947      267        1,680,256         1.59     6,293        81     100      124%
2004                17,019        16,986    1,397,293       1,390,274      272          938,209         1.60     3,449        82      55       67%
2005                16,882        17,028    1,381,214       1,396,114      257        1,157,136         1.51     4,502        82      68       83%
2006                17,134        17,005    1,477,359       1,426,569      242          731,429         1.42     3,022        84      43       51%
TOTAL               84,656        84,321    6,979,874       6,731,584    1,327        6,569,670         1.57     4,951        80      78       98%

UNDERINSURED MOTORIST

2002                16,764        16,488      344,450         330,136          1       153,000          0.01   153,000        20          9   46%
2003                16,856        16,814      349,409         347,029          1       230,000          0.01   230,000        21         14   66%
2004                17,019        16,986      353,740         352,843          2       350,000          0.01   175,000        21         21   99%
2005                16,882        17,028      349,072         353,058      -               -             -         N/A        21     -         0%
2006                17,134        17,005      377,655         361,546      -               -             -         N/A        21     -         0%
TOTAL               84,656        84,321    1,774,326       1,744,612          4       733,000          0.00   183,250        21         9    42%




                                                                                                                                                     2BV - 3
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                         PRIVATE PASSENGER AUTOMOBILE
                                                    TERRITORY 04 - PEMBERTON AREA/HOPE AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 8,379         8,198    3,890,894    3,782,701      620        4,098,110         7.56     6,610       461     500      108%
2003                 8,421         8,399    3,960,442    3,932,089      617        3,374,426         7.35     5,469       468     402       86%
2004                 8,670         8,598    4,064,740    4,039,674      597        3,255,302         6.94     5,453       470     379       81%
2005                 8,727         8,705    4,073,436    4,078,494      563        3,029,038         6.47     5,380       468     348       74%
2006                 8,846         8,824    4,332,709    4,199,915      581        1,986,845         6.58     3,420       476     225       47%
TOTAL               43,044        42,725   20,322,221   20,032,872    2,978       15,743,721         6.97     5,287       469     368       79%

THIRD PARTY TOTAL

2002                 8,379         8,198    4,600,946    4,489,736      620        6,378,909         7.56    10,289       548     778      142%
2003                 8,421         8,399    4,619,292    4,614,917      617        3,566,582         7.35     5,781       549     425       77%
2004                 8,670         8,598    4,715,144    4,695,049      597        4,575,223         6.94     7,664       546     532       97%
2005                 8,727         8,705    4,735,074    4,736,891      563        4,362,850         6.47     7,749       544     501       92%
2006                 8,846         8,824    5,031,037    4,886,345      581        3,335,618         6.58     5,741       554     378       68%
TOTAL               43,044        42,725   23,701,493   23,422,938    2,978       22,219,182         6.97     7,461       548     520       95%

ACCIDENT BENEFITS

2002                 8,379         8,198      521,725      461,703      153          675,497         1.87     4,415        56      82      146%
2003                 8,421         8,399      511,668      514,366      130          428,936         1.55     3,300        61      51       83%
2004                 8,670         8,598      526,507      523,213      122          240,083         1.42     1,968        61      28       46%
2005                 8,727         8,705      527,533      527,711      143          445,807         1.64     3,118        61      51       84%
2006                 8,846         8,824      562,745      546,843      128          369,512         1.45     2,887        62      42       68%
TOTAL               43,044        42,725    2,650,178    2,573,837      676        2,159,836         1.58     3,195        60      51       84%

UNDERINSURED MOTORIST

2002                 8,379         8,198     166,840      159,322       -               -             -         N/A        19     -          0%
2003                 8,421         8,399     168,961      167,916       -               -             -         N/A        20     -          0%
2004                 8,670         8,598     173,042      172,218           1       191,463          0.01   191,463        20         22   111%
2005                 8,727         8,705     173,482      173,451           1        65,000          0.01    65,000        20          7    37%
2006                 8,846         8,824     186,360      180,100           1       170,500          0.01   170,500        20         19    95%
TOTAL               43,044        42,725     868,685      853,006           3       426,963          0.01   142,321        20         10    50%




                                                                                                                                                  2BV - 4
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                          PRIVATE PASSENGER AUTOMOBILE
                                                           TERRITORY 05 - FRASER VALLEY

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED      WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES    PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               135,561       133,740    73,381,843    69,668,211   12,687     71,381,419         9.49     5,626       521     534     102%
2003               139,779       137,405    80,076,499    76,717,838   12,221     71,592,613         8.89     5,858       558     521      93%
2004               144,788       142,452    83,309,928    81,769,772   12,754     71,397,327         8.95     5,598       574     501      87%
2005               149,271       147,119    85,859,956    84,800,408   13,265     61,541,160         9.02     4,639       576     418      73%
2006               153,529       151,785    92,844,804    88,872,223   12,922     46,826,785         8.51     3,624       586     309      53%
TOTAL              722,929       712,501   415,473,030   401,828,452   63,849    322,739,305         8.96     5,055       564     453      80%

THIRD PARTY TOTAL

2002               135,561       133,740    88,096,754    84,073,646   12,687     88,421,066         9.49     6,969       629     661     105%
2003               139,779       137,405    95,390,434    91,729,023   12,221     86,859,452         8.89     7,107       668     632      95%
2004               144,788       142,452    99,212,940    97,385,022   12,754     88,134,814         8.95     6,910       684     619      91%
2005               149,271       147,119   102,316,496   100,989,879   13,265     74,212,140         9.02     5,595       686     504      73%
2006               153,529       151,785   109,918,345   105,728,279   12,922     52,135,197         8.51     4,035       697     343      49%
TOTAL              722,929       712,501   494,934,969   479,905,849   63,849    389,762,669         8.96     6,104       674     547      81%

ACCIDENT BENEFITS

2002               135,561       133,740     9,363,890     8,096,301    3,727      8,336,024         2.79     2,237        61      62     103%
2003               139,779       137,405    10,130,615     9,729,790    3,717      8,867,082         2.71     2,386        71      65      91%
2004               144,788       142,452    10,563,048    10,359,424    3,938      7,829,095         2.76     1,988        73      55      76%
2005               149,271       147,119    10,883,946    10,732,436    3,914      8,303,561         2.66     2,122        73      56      77%
2006               153,529       151,785    11,779,359    11,340,757    3,834      5,830,012         2.53     1,521        75      38      51%
TOTAL              722,929       712,501    52,720,858    50,258,707   19,130     39,165,774         2.68     2,047        71      55      78%

UNDERINSURED MOTORIST

2002               135,561       133,740     2,676,975     2,576,913       11      2,083,164         0.01   189,379        19      16      81%
2003               139,779       137,405     2,807,339     2,738,589        9      1,582,124         0.01   175,792        20      12      58%
2004               144,788       142,452     2,910,162     2,862,536        5        425,000         0.00    85,000        20       3      15%
2005               149,271       147,119     2,996,996     2,955,616        8      1,775,000         0.01   221,875        20      12      60%
2006               153,529       151,785     3,281,317     3,136,002        6      2,501,172         0.00   416,862        21      16      80%
TOTAL              722,929       712,500    14,672,789    14,269,656       39      8,366,460         0.01   214,525        20      12      59%




                                                                                                                                                  2BV - 5
                                                                              EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                              PRIVATE PASSENGER AUTOMOBILE
                                                          TERRITORY 06 - THOMPSON OKANAGAN AREA

                                                                 PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                        CLAIM                       CLAIM
                                                                                     CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                            ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED       WRITTEN           EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES     PREMIUMS         PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               294,089        290,933   123,394,620      118,665,559   18,766    105,685,947         6.45     5,632       408     363      89%
2003               300,081        296,665   130,096,060      126,763,634   18,418    102,298,201         6.21     5,554       427     345      81%
2004               310,470        306,024   135,411,820      133,102,652   19,505     99,150,942         6.37     5,083       435     324      74%
2005               320,302        315,696   139,709,271      137,987,033   19,973     91,434,390         6.33     4,578       437     290      66%
2006               330,739        326,158   152,232,865      145,009,150   19,692     69,716,904         6.04     3,540       445     214      48%
TOTAL            1,555,682      1,535,476   680,844,636      661,528,028   96,354    468,286,383         6.28     4,860       431     305      71%

THIRD PARTY TOTAL

2002               294,089        290,933   149,391,772      144,249,330   18,766    134,523,431         6.45     7,168       496     462      93%
2003               300,081        296,665   156,427,777      152,852,418   18,418    126,838,229         6.21     6,887       515     428      83%
2004               310,470        306,024   162,915,132      160,109,442   19,505    118,690,606         6.37     6,085       523     388      74%
2005               320,302        315,696   168,623,577      166,178,418   19,973    117,869,738         6.33     5,901       526     373      71%
2006               330,739        326,158   182,773,083      174,889,288   19,692     78,964,150         6.04     4,010       536     242      45%
TOTAL            1,555,682      1,535,476   820,131,341      798,278,896   96,354    576,886,154         6.28     5,987       520     376      72%

ACCIDENT BENEFITS

2002               294,089        290,933    16,432,579       14,578,098    5,213     13,582,380         1.79     2,605        50      47      93%
2003               300,081        296,665    17,344,530       16,872,938    5,033     13,190,641         1.70     2,621        57      44      78%
2004               310,470        306,024    17,964,400       17,696,687    5,090     13,234,437         1.66     2,600        58      43      75%
2005               320,302        315,696    18,528,605       18,265,120    5,170     12,474,537         1.64     2,413        58      40      68%
2006               330,739        326,158    20,278,129       19,421,671    4,921      8,439,525         1.51     1,715        60      26      43%
TOTAL            1,555,682      1,535,476    90,548,243       86,834,513   25,427     60,921,520         1.66     2,396        57      40      70%

UNDERINSURED MOTORIST

2002               294,089        290,931     5,635,612        5,451,328       16      1,960,820         0.01   122,551        19      7       36%
2003               300,081        296,664     5,837,541        5,734,759       13      2,361,104         0.00   181,623        19      8       41%
2004               310,470        306,024     6,048,288        5,958,837        8        836,866         0.00   104,608        19      3       14%
2005               320,302        315,696     6,235,814        6,147,105       11      2,450,020         0.00   222,729        19      8       40%
2006               330,739        326,158     6,864,742        6,546,885        1        350,000         0.00   350,000        20      1        5%
TOTAL            1,555,682      1,535,473    30,621,997       29,838,913       49      7,958,809         0.00   162,425        19      5       27%




                                                                                                                                                      2BV - 6
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                          PRIVATE PASSENGER AUTOMOBILE
                                                             TERRITORY 07 - KOOTENAYS

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED      WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES    PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                94,232        93,914    37,085,675    36,276,624    4,813     26,168,672         5.12     5,437       386     279      72%
2003                94,252        94,143    38,307,804    37,753,151    4,444     23,260,608         4.72     5,234       401     247      62%
2004                96,026        95,233    39,195,916    38,809,810    4,236     20,168,978         4.45     4,761       408     212      52%
2005                97,859        96,960    39,827,190    39,582,525    4,118     19,166,702         4.25     4,654       408     198      48%
2006               100,079        99,128    42,877,626    41,137,524    4,125     16,342,146         4.16     3,962       415     165      40%
TOTAL              482,447       479,379   197,294,211   193,559,635   21,736    105,107,106         4.53     4,836       404     219      54%

THIRD PARTY TOTAL

2002                94,232        93,914    44,300,222    43,529,845    4,813     35,385,384         5.12     7,352       464     377      81%
2003                94,252        94,143    45,513,564    44,973,087    4,444     28,811,770         4.72     6,483       478     306      64%
2004                96,026        95,233    46,569,144    46,120,108    4,236     26,149,566         4.45     6,173       484     275      57%
2005                97,859        96,960    47,362,793    47,013,911    4,118     28,466,226         4.25     6,913       485     294      61%
2006               100,079        99,128    50,658,584    48,830,999    4,125     26,247,464         4.16     6,363       493     265      54%
TOTAL              482,447       479,379   234,404,307   230,467,950   21,736    145,060,410         4.53     6,674       481     303      63%

ACCIDENT BENEFITS

2002                94,232        93,914     4,961,620     4,468,638    1,030      4,033,977         1.10     3,916        48      43      90%
2003                94,252        94,143     4,920,357     4,927,150      994      4,240,590         1.06     4,266        52      45      86%
2004                96,026        95,233     5,037,446     4,991,913      918      4,163,825         0.96     4,536        52      44      83%
2005                97,859        96,960     5,119,856     5,078,071      909      3,791,032         0.94     4,171        52      39      75%
2006               100,079        99,128     5,534,889     5,337,013      911      3,028,107         0.92     3,324        54      31      57%
TOTAL              482,447       479,379    25,574,168    24,802,785    4,762     19,257,531         0.99     4,044        52      40      78%

UNDERINSURED MOTORIST

2002                94,232        93,914     1,810,351     1,763,397        9      1,001,742         0.01   111,305        19      11      57%
2003                94,252        94,143     1,831,469     1,822,253       10        874,032         0.01    87,403        19       9      48%
2004                96,026        95,233     1,867,251     1,852,448        7        740,000         0.01   105,714        19       8      40%
2005                97,859        96,960     1,896,904     1,881,148        8      1,831,853         0.01   228,982        19      19      97%
2006               100,079        99,128     2,067,000     1,981,964        3      1,082,500         0.00   360,833        20      11      55%
TOTAL              482,447       479,378     9,472,975     9,301,209       37      5,530,127         0.01   149,463        19      12      59%




                                                                                                                                                  2BV - 7
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                        PRIVATE PASSENGER AUTOMOBILE
                                                          TERRITORY 08 - CARIBOO AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                28,289        28,365   13,016,368   12,656,566    1,475        7,586,413         5.20     5,143       446     267      60%
2003                27,867        27,962   13,473,422   13,228,204    1,416        8,630,466         5.06     6,095       473     309      65%
2004                28,172        28,089   13,660,400   13,600,102    1,492        9,877,623         5.31     6,620       484     352      73%
2005                28,841        28,554   13,932,274   13,831,318    1,473        8,381,008         5.16     5,690       484     294      61%
2006                29,493        29,286   14,993,969   14,436,475    1,361        5,949,672         4.65     4,372       493     203      41%
TOTAL              142,663       142,257   69,076,433   67,752,665    7,217       40,425,182         5.07     5,601       476     284      60%

THIRD PARTY TOTAL

2002                28,289        28,365   15,561,283   15,213,130    1,475        8,324,517         5.20     5,644       536     293       55%
2003                27,867        27,962   15,862,217   15,682,619    1,416        9,526,872         5.06     6,728       561     341       61%
2004                28,172        28,089   15,925,096   15,937,013    1,492       16,588,739         5.31    11,118       567     591      104%
2005                28,841        28,554   16,201,030   16,075,654    1,473       10,719,095         5.16     7,277       563     375       67%
2006                29,493        29,286   17,380,522   16,793,436    1,361       11,792,515         4.65     8,665       573     403       70%
TOTAL              142,663       142,257   80,930,148   79,701,851    7,217       56,951,739         5.07     7,891       560     400       71%

ACCIDENT BENEFITS

2002                28,289        28,365    1,802,767    1,618,285      342          713,606         1.21     2,087        57         25   44%
2003                27,867        27,962    1,831,978    1,810,898      374        1,450,703         1.34     3,879        65         52   80%
2004                28,172        28,089    1,857,092    1,848,983      347        1,782,955         1.24     5,138        66         63   96%
2005                28,841        28,554    1,893,563    1,877,879      356          916,204         1.25     2,574        66         32   49%
2006                29,493        29,286    2,044,735    1,976,597      337        1,016,156         1.15     3,015        67         35   51%
TOTAL              142,663       142,257    9,430,135    9,132,642    1,756        5,879,625         1.23     3,348        64         41   64%

UNDERINSURED MOTORIST

2002                28,289        28,365      544,499      534,790          1            -           0.00       -          19     -          0%
2003                27,867        27,962      539,714      540,162          2            274         0.01       137        19          0     0%
2004                28,172        28,089      545,618      544,119          1        390,000         0.00   390,000        19         14    72%
2005                28,841        28,554      555,994      551,485      -                -            -         N/A        19     -          0%
2006                29,493        29,286      605,533      581,741          2        680,000         0.01   340,000        20         23   117%
TOTAL              142,663       142,257    2,791,358    2,752,298          6      1,070,274         0.00   178,379        19          8    39%




                                                                                                                                                  2BV - 8
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                          PRIVATE PASSENGER AUTOMOBILE
                                                         TERRITORY 09 - PRINCE GEORGE AREA

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED      WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES    PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                85,169        85,231    35,688,362    35,536,952    5,936     26,876,868         6.96     4,528       417     315      76%
2003                85,584        85,326    35,862,568    35,791,288    5,711     27,733,292         6.69     4,856       419     325      77%
2004                87,041        86,536    36,590,851    36,335,594    5,359     24,452,040         6.19     4,563       420     283      67%
2005                89,127        88,226    37,375,981    37,092,285    5,126     20,442,080         5.81     3,988       420     232      55%
2006                90,704        90,115    40,000,494    38,444,667    5,412     17,662,972         6.01     3,264       427     196      46%
TOTAL              437,625       435,434   185,518,256   183,200,786   27,544    117,167,252         6.33     4,254       421     269      64%

THIRD PARTY TOTAL

2002                85,169        85,231    42,856,994    42,825,748    5,936     36,737,765         6.96     6,189       502     431      86%
2003                85,584        85,326    42,704,111    42,800,940    5,711     35,154,133         6.69     6,156       502     412      82%
2004                87,041        86,536    43,516,797    43,232,070    5,359     33,871,412         6.19     6,320       500     391      78%
2005                89,127        88,226    44,468,554    44,082,330    5,126     30,188,263         5.81     5,889       500     342      68%
2006                90,704        90,115    47,378,838    45,721,810    5,412     21,902,639         6.01     4,047       507     243      48%
TOTAL              437,625       435,434   220,925,294   218,662,897   27,544    157,854,212         6.33     5,731       502     363      72%

ACCIDENT BENEFITS

2002                85,169        85,231     4,868,450     4,404,277    1,308      4,296,974         1.53     3,285        52      50      98%
2003                85,584        85,326     4,836,767     4,844,394    1,370      2,660,095         1.61     1,942        57      31      55%
2004                87,041        86,536     4,912,631     4,888,118    1,310      3,443,590         1.51     2,629        56      40      70%
2005                89,127        88,226     5,017,882     4,970,721    1,127      2,481,542         1.28     2,202        56      28      50%
2006                90,704        90,115     5,411,756     5,227,825    1,262      1,976,116         1.40     1,566        58      22      38%
TOTAL              437,625       435,434    25,047,486    24,335,336    6,377     14,858,317         1.46     2,330        56      34      61%

UNDERINSURED MOTORIST

2002                85,169        85,231     1,670,883     1,632,871        4        561,000         0.00   140,250        19       7      34%
2003                85,584        85,326     1,695,220     1,683,709        6      1,118,200         0.01   186,367        20      13      66%
2004                87,041        86,536     1,722,387     1,713,725        3        623,099         0.00   207,700        20       7      36%
2005                89,127        88,226     1,760,154     1,742,897        3        810,040         0.00   270,013        20       9      46%
2006                90,704        90,115     1,913,125     1,836,754        6      1,055,000         0.01   175,833        20      12      57%
TOTAL              437,625       435,433     8,761,769     8,609,956       22      4,167,339         0.01   189,424        20      10      48%




                                                                                                                                                  2BV - 9
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                        PRIVATE PASSENGER AUTOMOBILE
                                                        TERRITORY 10 - NORTHERN COAST

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                31,883        32,138   12,967,088   13,285,669    1,687        7,535,660         5.25     4,467       413     234      57%
2003                31,453        31,656   12,336,398   12,628,028    1,572        6,661,332         4.97     4,237       399     210      53%
2004                31,459        31,475   12,375,547   12,376,909    1,525        6,498,459         4.85     4,261       393     206      53%
2005                31,766        31,604   12,478,291   12,463,452    1,431        6,117,656         4.53     4,275       394     194      49%
2006                31,863        31,790   13,162,377   12,683,993    1,430        3,610,676         4.50     2,525       399     114      28%
TOTAL              158,425       158,663   63,319,701   63,438,050    7,645       30,423,783         4.82     3,980       400     192      48%

THIRD PARTY TOTAL

2002                31,883        32,138   15,513,925   15,994,910    1,687        7,739,943         5.25     4,588       498     241      48%
2003                31,453        31,656   14,645,116   15,046,164    1,572        7,824,078         4.97     4,977       475     247      52%
2004                31,459        31,475   14,671,907   14,680,489    1,525        8,074,219         4.85     5,295       466     257      55%
2005                31,766        31,604   14,802,358   14,768,483    1,431        7,871,847         4.53     5,501       467     249      53%
2006                31,863        31,790   15,531,293   15,033,632    1,430        3,610,676         4.50     2,525       473     114      24%
TOTAL              158,425       158,663   75,164,599   75,523,678    7,645       35,120,763         4.82     4,594       476     221      47%

ACCIDENT BENEFITS

2002                31,883        32,138    1,981,016    1,814,985      361          952,665         1.12     2,639        56         30   52%
2003                31,453        31,656    1,850,627    1,905,462      335          746,546         1.06     2,228        60         24   39%
2004                31,459        31,475    1,854,376    1,857,374      322          759,101         1.02     2,357        59         24   41%
2005                31,766        31,604    1,869,340    1,862,442      295          749,132         0.93     2,539        59         24   40%
2006                31,863        31,790    1,973,938    1,917,031      265          268,682         0.83     1,014        60          8   14%
TOTAL              158,425       158,663    9,529,297    9,357,295    1,578        3,476,126         0.99     2,203        59         22   37%

UNDERINSURED MOTORIST

2002                31,883        32,138      617,964      608,676      -               -             -         N/A        19     -         0%
2003                31,453        31,656      614,272      616,314          1        23,935          0.00    23,935        19         1     4%
2004                31,459        31,475      612,262      613,876          1           -            0.00       -          20     -         0%
2005                31,766        31,604      617,012      614,669          1       460,000          0.00   460,000        19         15   75%
2006                31,863        31,790      660,546      636,354      -               -             -         N/A        20     -         0%
TOTAL              158,425       158,662    3,122,056    3,089,888          3       483,935          0.00   161,312        19         3    16%




                                                                                                                                                  2BV - 10
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                        PRIVATE PASSENGER AUTOMOBILE
                                                        TERRITORY 11 - PEACE RIVER AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                34,095        33,779   14,515,555   14,428,281    2,111       12,385,166         6.25     5,867       427     367      86%
2003                35,156        34,613   14,754,316   14,625,069    2,161        9,777,594         6.24     4,525       423     282      67%
2004                36,670        36,156   15,459,879   15,237,724    2,133        9,548,298         5.90     4,476       421     264      63%
2005                39,355        38,058   16,593,365   16,066,894    2,177        7,139,552         5.72     3,280       422     188      44%
2006                41,614        40,777   18,579,128   17,578,317    2,229        8,193,219         5.47     3,676       431     201      47%
TOTAL              186,890       183,382   79,902,243   77,936,285   10,811       47,043,830         5.90     4,351       425     257      60%

THIRD PARTY TOTAL

2002                34,095        33,779   17,650,050   17,612,673    2,111       17,468,016         6.25     8,275       521     517      99%
2003                35,156        34,613   17,826,977   17,722,505    2,161       12,923,744         6.24     5,980       512     373      73%
2004                36,670        36,156   18,613,670   18,374,727    2,133       12,025,039         5.90     5,638       508     333      65%
2005                39,355        38,058   20,007,690   19,345,674    2,177        8,543,666         5.72     3,925       508     224      44%
2006                41,614        40,777   22,298,904   21,184,711    2,229       13,008,813         5.47     5,836       520     319      61%
TOTAL              186,890       183,382   96,397,291   94,240,290   10,811       63,969,278         5.90     5,917       514     349      68%

ACCIDENT BENEFITS

2002                34,095        33,779    2,104,827    1,896,037      381        2,001,127         1.13     5,252        56      59      106%
2003                35,156        34,613    2,036,674    2,058,449      410        1,183,275         1.18     2,886        59      34       57%
2004                36,670        36,156    2,134,479    2,104,552      408        1,686,265         1.13     4,133        58      47       80%
2005                39,355        38,058    2,288,396    2,214,528      385        1,545,131         1.01     4,013        58      41       70%
2006                41,614        40,777    2,562,107    2,440,751      393        2,308,033         0.96     5,873        60      57       95%
TOTAL              186,890       183,382   11,126,483   10,714,317    1,977        8,723,831         1.08     4,413        58      48       81%

UNDERINSURED MOTORIST

2002                34,095        33,778      681,957      659,468          3        173,387         0.01    57,796        20         5     26%
2003                35,156        34,613      697,216      686,886          1         51,564         0.00    51,564        20         1      8%
2004                36,670        36,156      727,991      718,256      -                -            -         N/A        20     -          0%
2005                39,355        38,058      780,739      755,195          1        198,000         0.00   198,000        20          5    26%
2006                41,614        40,777      875,501      837,226          3      2,741,000         0.01   913,667        21         67   327%
TOTAL              186,890       183,382    3,763,404    3,657,030          8      3,163,951         0.00   395,494        20         17    87%




                                                                                                                                                  2BV - 11
                                                                           EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                       PRIVATE PASSENGER AUTOMOBILE
                             TERRITORY 12 - SOUTHERN VANCOUVER ISLAND AND ALL OTHER ISLANDS OFF THE WEST COAST

                                                              PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                       CLAIM
                                                                                  CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                         ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED       WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES     PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               211,656        209,378    83,606,405    83,263,942   15,107     64,297,911         7.22     4,256       398     307      77%
2003               216,351        213,465    83,092,180    83,059,229   14,692     68,568,433         6.88     4,667       389     321      83%
2004               221,721        219,303    85,735,508    84,598,273   14,925     62,642,585         6.81     4,197       386     286      74%
2005               225,742        223,499    87,317,720    86,576,373   15,142     52,964,978         6.77     3,498       387     237      61%
2006               229,100        227,723    93,140,761    89,630,160   14,673     39,016,474         6.44     2,659       394     171      44%
TOTAL            1,104,570      1,093,368   432,892,574   427,127,977   74,539    287,490,381         6.82     3,857       391     263      67%

THIRD PARTY TOTAL

2002               211,656        209,378    97,333,925    97,244,571   15,107     80,406,391         7.22     5,322       464     384      83%
2003               216,351        213,465    96,673,538    96,687,830   14,692     80,266,751         6.88     5,463       453     376      83%
2004               221,721        219,303    99,655,229    98,416,934   14,925     73,310,534         6.81     4,912       449     334      74%
2005               225,742        223,499   101,722,818   100,615,083   15,142     59,172,777         6.77     3,908       450     265      59%
2006               229,100        227,723   108,120,699   104,411,974   14,673     45,475,471         6.44     3,099       459     200      44%
TOTAL            1,104,570      1,093,368   503,506,209   497,376,392   74,539    338,631,925         6.82     4,543       455     310      68%

ACCIDENT BENEFITS

2002               211,656        209,378    11,180,629    10,084,591    3,632      7,442,868         1.73     2,049        48      36      74%
2003               216,351        213,465    10,860,626    10,956,732    3,620      7,850,641         1.70     2,169        51      37      72%
2004               221,721        219,303    11,268,241    11,091,913    3,543      7,950,264         1.62     2,244        51      36      72%
2005               225,742        223,499    11,469,312    11,358,677    3,742      6,228,631         1.67     1,665        51      28      55%
2006               229,100        227,723    12,210,893    11,825,955    3,408      5,066,410         1.50     1,487        52      22      43%
TOTAL            1,104,570      1,093,368    56,989,701    55,317,869   17,945     34,538,813         1.64     1,925        51      32      62%

UNDERINSURED MOTORIST

2002               211,656        209,377     4,094,588     3,953,803        4        350,000         0.00    87,500        19       2       9%
2003               216,351        213,465     4,266,020     4,174,342        6      2,209,632         0.00   368,272        20      10      53%
2004               221,721        219,303     4,379,593     4,330,170        4        473,969         0.00   118,492        20       2      11%
2005               225,742        223,499     4,457,998     4,414,193        3      1,515,000         0.00   505,000        20       7      34%
2006               229,100        227,723     4,811,435     4,623,589        5        471,988         0.00    94,398        20       2      10%
TOTAL            1,104,570      1,093,367    22,009,634    21,496,097       22      5,020,589         0.00   228,209        20       5      23%




                                                                                                                                                   2BV - 12
                                                                            EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                            PRIVATE PASSENGER AUTOMOBILE
                                            TERRITORY 13 - MIDDLE VANCOUVER ISLAND/SUNSHINE COAST AREA

                                                               PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                      CLAIM                       CLAIM
                                                                                   CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                          ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED        WRITTEN        EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES      PREMIUMS      PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               204,365        201,649     88,426,542    87,020,273   12,402     64,661,204         6.15     5,214       432     321      74%
2003               209,628        206,642     88,951,334    88,482,880   12,143     67,959,382         5.88     5,597       428     329      77%
2004               218,672        214,511     93,280,310    91,327,687   12,899     65,799,495         6.01     5,101       426     307      72%
2005               225,467        222,293     96,085,867    94,967,168   13,109     58,205,962         5.90     4,440       427     262      61%
2006               231,098        229,110    103,568,095    99,339,815   12,797     43,943,065         5.59     3,434       434     192      44%
TOTAL            1,089,229      1,074,206    470,312,148   461,137,824   63,350    300,569,108         5.90     4,745       429     280      65%

THIRD PARTY TOTAL

2002               204,365        201,649    104,144,964   102,929,478   12,402     77,812,310         6.15     6,274       510     386      76%
2003               209,628        206,642    104,267,541   103,947,974   12,143     78,594,946         5.88     6,472       503     380      76%
2004               218,672        214,511    109,347,669   107,094,627   12,899     85,837,777         6.01     6,655       499     400      80%
2005               225,467        222,293    112,907,295   111,365,254   13,109     71,401,458         5.90     5,447       501     321      64%
2006               231,098        229,110    121,016,630   116,610,566   12,797     53,632,623         5.59     4,191       509     234      46%
TOTAL            1,089,229      1,074,206    551,684,099   541,947,899   63,350    367,279,114         5.90     5,798       505     342      68%

ACCIDENT BENEFITS

2002               204,365        201,649     11,278,995    10,227,340    3,427      7,144,267         1.70     2,085        51      35      70%
2003               209,628        206,642     11,950,132    11,599,045    3,466      8,230,209         1.68     2,375        56      40      71%
2004               218,672        214,511     12,548,277    12,278,479    3,460      7,599,828         1.61     2,196        57      35      62%
2005               225,467        222,293     12,924,471    12,751,785    3,366      9,666,657         1.51     2,872        57      43      76%
2006               231,098        229,110     13,885,301    13,435,515    3,203      7,020,638         1.40     2,192        59      31      52%
TOTAL            1,089,229      1,074,206     62,587,176    60,292,164   16,922     39,661,600         1.58     2,344        56      37      66%

UNDERINSURED MOTORIST

2002               204,365        201,648      3,885,466     3,747,739       12      2,283,392         0.01   190,283        19      11      61%
2003               209,628        206,642      4,049,367     3,965,558       18      3,544,787         0.01   196,933        19      17      89%
2004               218,672        214,511      4,228,054     4,147,178       11      2,760,000         0.01   250,909        19      13      67%
2005               225,467        222,293      4,354,736     4,295,786        8      2,396,850         0.00   299,606        19      11      56%
2006               231,098        229,110      4,740,576     4,549,699        3        210,000         0.00    70,000        20       1       5%
TOTAL            1,089,229      1,074,205     21,258,199    20,705,960       52     11,195,029         0.00   215,289        19      10      54%




                                                                                                                                                    2BV - 13
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                        PRIVATE PASSENGER AUTOMOBILE
                                                   TERRITORY 14 - NORTHERN VANCOUVER ISLAND

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                27,960        27,913   12,877,429   12,951,303    1,679     11,446,352         6.02     6,817       464     410      88%
2003                28,286        28,184   13,121,116   13,046,945    1,693     12,449,589         6.01     7,354       463     442      95%
2004                28,977        28,543   13,484,406   13,259,256    1,648      8,968,126         5.77     5,442       465     314      68%
2005                29,722        29,433   13,751,106   13,682,340    1,568     10,291,637         5.33     6,564       465     350      75%
2006                30,469        30,159   14,847,655   14,184,791    1,661      5,265,365         5.51     3,170       470     175      37%
TOTAL              145,414       144,233   68,081,712   67,124,636    8,249     48,421,068         5.72     5,870       465     336      72%

THIRD PARTY TOTAL

2002                27,960        27,913   15,529,531   15,665,767    1,679     15,551,614         6.02     9,262       561     557      99%
2003                28,286        28,184   15,785,975   15,703,170    1,693     16,308,320         6.01     9,633       557     579     104%
2004                28,977        28,543   16,282,312   15,993,872    1,648     13,635,631         5.77     8,274       560     478      85%
2005                29,722        29,433   16,660,845   16,542,599    1,568     12,002,831         5.33     7,655       562     408      73%
2006                30,469        30,159   17,878,565   17,173,969    1,661      6,125,746         5.51     3,688       569     203      36%
TOTAL              145,414       144,233   82,137,228   81,079,376    8,249     63,624,142         5.72     7,713       562     441      78%

ACCIDENT BENEFITS

2002                27,960        27,913    1,830,074    1,626,339      420      1,568,294         1.50     3,734        58      56      96%
2003                28,286        28,184    1,922,301    1,882,555      472      2,464,005         1.67     5,220        67      87     131%
2004                28,977        28,543    1,983,749    1,946,714      409      1,306,043         1.43     3,193        68      46      67%
2005                29,722        29,433    2,024,376    2,009,181      419      2,009,051         1.42     4,795        68      68     100%
2006                30,469        30,159    2,191,171    2,110,140      435        713,507         1.44     1,640        70      24      34%
TOTAL              145,414       144,233    9,951,671    9,574,929    2,155      8,060,899         1.49     3,741        66      56      84%

UNDERINSURED MOTORIST

2002                27,960        27,913      544,011      530,212        4        975,180         0.01   243,795        19      35     184%
2003                28,286        28,184      553,952      550,808        4      1,549,500         0.01   387,375        20      55     281%
2004                28,977        28,543      567,122      558,640        2      1,066,718         0.01   533,359        20      37     191%
2005                29,722        29,433      578,945      574,529        2      1,050,000         0.01   525,000        20      36     183%
2006                30,469        30,159      633,821      605,572        1          3,133         0.00     3,133        20       0       1%
TOTAL              145,414       144,232    2,877,851    2,819,760       13      4,644,530         0.01   357,272        20      32     165%




                                                                                                                                                2BV - 14
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                   COMMERCIAL
                                                           TERRITORY 01 - LOWER MAINLAND

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                      CLAIM                       CLAIM
                                                                                   CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                          ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED      WRITTEN        EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES    PREMIUMS      PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002               126,423       128,634    73,886,905    70,363,531   14,285       77,167,665        11.11     5,402       547     600      110%
2003               124,729       125,647    79,150,125    76,603,905   13,605       69,398,798        10.83     5,101       610     552       91%
2004               128,282       126,845    81,675,753    80,991,060   13,920       62,747,936        10.97     4,508       639     495       77%
2005               135,079       131,755    85,006,081    83,375,094   14,562       71,236,257        11.05     4,892       633     541       85%
2006               141,844       138,868    93,403,621    89,103,252   13,910       47,369,495        10.02     3,405       642     341       53%
TOTAL              656,358       651,749   413,122,485   400,436,842   70,282      327,920,151        10.78     4,666       614     503       82%

THIRD PARTY TOTAL

2002               126,423       128,634    84,802,425    80,882,036   14,285       87,653,556        11.11     6,136       629     681      108%
2003               124,729       125,647    92,388,383    88,772,617   13,605       71,883,552        10.83     5,284       707     572       81%
2004               128,282       126,845    95,591,068    94,560,492   13,920       65,240,043        10.97     4,687       745     514       69%
2005               135,079       131,755   100,030,337    97,921,204   14,562       73,941,845        11.05     5,078       743     561       76%
2006               141,844       138,868   109,827,544   105,047,675   13,910       49,676,381        10.02     3,571       756     358       47%
TOTAL              656,358       651,749   482,639,757   467,184,025   70,282      348,395,376        10.78     4,957       717     535       75%

ACCIDENT BENEFITS

2002               126,423       128,634     4,457,536     4,004,096    1,793        2,819,422         1.39     1,572        31         22   70%
2003               124,729       125,647     4,685,113     4,562,859    1,702        2,778,950         1.35     1,633        36         22   61%
2004               128,282       126,845     4,813,155     4,793,789    1,582        1,853,863         1.25     1,172        38         15   39%
2005               135,079       131,755     4,986,864     4,908,778    1,664        2,466,564         1.26     1,482        37         19   50%
2006               141,844       138,868     5,456,555     5,222,231    1,521        1,438,346         1.10       946        38         10   28%
TOTAL              656,358       651,749    24,399,223    23,491,752    8,262       11,357,145         1.27     1,375        36         17   48%

UNDERINSURED MOTORIST

2002               122,665       124,889     1,264,519     1,259,185          3        122,935         0.00    40,978        10         1    10%
2003               121,077       121,941     1,320,033     1,292,507      -                -            -         N/A        11     -         0%
2004               124,486       123,086     1,358,041     1,344,007          1        400,000         0.00   400,000        11         3    30%
2005               131,064       127,817     1,416,413     1,387,601          2        620,000         0.00   310,000        11         5    45%
2006               137,654       134,735     1,544,939     1,483,767      -                -            -         N/A        11     -         0%
TOTAL              636,945       632,468     6,903,945     6,767,066          6      1,142,935         0.00   190,489        11         2    17%




                                                                                                                                                    2BV - 15
                                                                            EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                       COMMERCIAL
                                                        TERRITORY 02 - MAPLE RIDGE/PITT MEADOWS

                                                               PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                        CLAIM                      CLAIM
                                                                                     CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                            ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN           EARNED   NUMBER         EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS         PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 7,946         7,794    1,710,784        1,670,941      318        1,908,681         4.08    6,002       214     245      114%
2003                 8,027         7,987    1,801,035        1,754,962      314        1,661,231         3.93    5,291       220     208       95%
2004                 8,367         8,225    1,857,762        1,826,581      307        2,220,600         3.73    7,233       222     270      122%
2005                 8,645         8,532    1,836,227        1,845,236      310        1,658,612         3.63    5,350       216     194       90%
2006                 9,259         8,943    2,070,183        1,928,211      295        1,285,466         3.30    4,358       216     144       67%
TOTAL               42,244        41,481    9,275,991        9,025,931    1,544        8,734,590         3.72    5,657       218     211       97%

THIRD PARTY TOTAL

2002                 7,946         7,794    2,037,914        1,992,441      318        1,908,681         4.08    6,002       256     245       96%
2003                 8,027         7,987    2,192,724        2,115,518      314        1,661,231         3.93    5,291       265     208       79%
2004                 8,367         8,225    2,273,050        2,229,924      307        2,855,025         3.73    9,300       271     347      128%
2005                 8,645         8,532    2,256,885        2,264,375      310        2,103,905         3.63    6,787       265     247       93%
2006                 9,259         8,943    2,538,199        2,370,976      295        1,336,538         3.30    4,531       265     149       56%
TOTAL               42,244        41,481   11,298,772       10,973,234    1,544        9,865,380         3.72    6,389       265     238       90%

ACCIDENT BENEFITS

2002                 7,946         7,794     172,127          149,961        46          94,038          0.59    2,044        19         12   63%
2003                 8,027         7,987     189,073          180,554        51          42,010          0.64      824        23          5   23%
2004                 8,367         8,225     195,783          192,115        54         158,990          0.66    2,944        23         19   83%
2005                 8,645         8,532     193,837          194,676        41          60,519          0.48    1,476        23          7   31%
2006                 9,259         8,943     220,730          206,065        42          41,509          0.47      988        23          5   20%
TOTAL               42,244        41,481     971,550          923,371       234         397,067          0.56    1,697        22         10   43%

UNDERINSURED MOTORIST

2002                 7,841         7,693      56,328           54,986           1            -           0.01     -            7     -         0%
2003                 7,919         7,888      58,958           57,512       -                -            -       N/A          7     -         0%
2004                 8,259         8,119      60,436           59,667       -                -            -       N/A          7     -         0%
2005                 8,537         8,423      60,318           60,395       -                -            -       N/A          7     -         0%
2006                 9,143         8,833      66,431           63,246       -                -            -       N/A          7     -         0%
TOTAL               41,699        40,955     302,471          295,806           1            -           0.00     -            7     -         0%




                                                                                                                                                     2BV - 16
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                    COMMERCIAL
                                                       TERRITORY 03 - SQUAMISH WHISTLER AREA

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                      CLAIM
                                                                                 CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN         EARNED   NUMBER       EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS       PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 3,150         3,118   1,174,687       1,156,205      199        462,246         6.38    2,323       371     148      40%
2003                 3,250         3,198   1,302,082       1,227,267      165        623,248         5.16    3,777       384     195      51%
2004                 3,299         3,288   1,339,678       1,338,501      154        531,588         4.68    3,452       407     162      40%
2005                 3,402         3,361   1,386,633       1,379,635      146        599,534         4.34    4,106       410     178      43%
2006                 3,552         3,492   1,457,293       1,405,578      158        752,530         4.52    4,763       403     216      54%
TOTAL               16,653        16,457   6,660,373       6,507,186      822      2,969,146         4.99    3,612       395     180      46%

THIRD PARTY TOTAL

2002                 3,150         3,118   1,394,361       1,369,904      199        462,246         6.38    2,323       439     148      34%
2003                 3,250         3,198   1,580,462       1,470,606      165        623,248         5.16    3,777       460     195      42%
2004                 3,299         3,288   1,615,147       1,621,917      154        531,588         4.68    3,452       493     162      33%
2005                 3,402         3,361   1,677,734       1,668,423      146        599,534         4.34    4,106       496     178      36%
2006                 3,552         3,492   1,748,480       1,695,259      158        752,530         4.52    4,763       485     216      44%
TOTAL               16,653        16,457   8,016,184       7,826,108      822      2,969,146         4.99    3,612       476     180      38%

ACCIDENT BENEFITS

2002                 3,150         3,118     112,520        101,380        13         2,744          0.42      211        33          1    3%
2003                 3,250         3,198     123,448        117,015        20       115,464          0.63    5,773        37         36   99%
2004                 3,299         3,288     125,675        125,628        11        64,347          0.33    5,850        38         20   51%
2005                 3,402         3,361     128,322        128,005        17       104,128          0.51    6,125        38         31   81%
2006                 3,552         3,492     134,166        130,835        15        13,610          0.43      907        37          4   10%
TOTAL               16,653        16,457     624,131        602,863        76       300,294          0.46    3,951        37         18   50%

UNDERINSURED MOTORIST

2002                 3,026         2,997      30,628         29,977       -              -            -       N/A         10     -         0%
2003                 3,122         3,076      33,936         32,155       -              -            -       N/A         10     -         0%
2004                 3,146         3,146      33,496         33,909       -              -            -       N/A         11     -         0%
2005                 3,241         3,201      33,948         33,856       -              -            -       N/A         11     -         0%
2006                 3,391         3,330      36,115         35,434       -              -            -       N/A         11     -         0%
TOTAL               15,926        15,751     168,123        165,331       -              -            -       N/A         10     -         0%




                                                                                                                                                 2BV - 17
                                                                       EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                   COMMERCIAL
                                                   TERRITORY 04 - PEMBERTON AREA/HOPE AREA

                                                          PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                 CLAIM                      CLAIM
                                                                              CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                     ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER       EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 2,021         1,948     408,273      397,117       59        167,070         3.03    2,832       204      86      42%
2003                 2,066         2,035     396,135      399,819       67      1,342,608         3.29   20,039       196     660     336%
2004                 2,196         2,160     420,578      416,031       64        301,355         2.96    4,709       193     140      72%
2005                 2,167         2,184     414,176      413,892       42        127,788         1.92    3,043       190      59      31%
2006                 2,294         2,239     422,580      408,675       42        166,727         1.88    3,970       183      74      41%
TOTAL               10,744        10,567   2,061,742    2,035,535      274      2,105,548         2.59    7,684       193     199     103%

THIRD PARTY TOTAL

2002                 2,021         1,948     483,628      469,759       59        167,070         3.03    2,832       241      86      36%
2003                 2,066         2,035     476,807      478,505       67      1,467,330         3.29   21,900       235     721     307%
2004                 2,196         2,160     505,229      499,863       64        301,355         2.96    4,709       231     140      60%
2005                 2,167         2,184     499,755      499,882       42        127,788         1.92    3,043       229      59      26%
2006                 2,294         2,239     511,950      495,756       42        166,727         1.88    3,970       221      74      34%
TOTAL               10,744        10,567   2,477,369    2,443,765      274      2,230,270         2.59    8,140       231     211      91%

ACCIDENT BENEFITS

2002                 2,021         1,948      42,707      37,466         8           916          0.41      114        19       0       2%
2003                 2,066         2,035      45,454      44,369         7        12,044          0.34    1,721        22       6      27%
2004                 2,196         2,160      47,972      47,319        12        88,003          0.56    7,334        22      41     186%
2005                 2,167         2,184      45,619      46,507         3        20,428          0.14    6,809        21       9      44%
2006                 2,294         2,239      45,958      45,124         6           427          0.27       71        20       0       1%
TOTAL               10,744        10,567     227,710     220,785        36       121,819          0.34    3,384        21      12      55%

UNDERINSURED MOTORIST

2002                 1,963         1,889      17,824      16,817       -              -            -       N/A          9     -         0%
2003                 2,009         1,977      19,394      18,701       -              -            -       N/A          9     -         0%
2004                 2,136         2,105      19,710      19,860       -              -            -       N/A          9     -         0%
2005                 2,114         2,131      19,221      19,555       -              -            -       N/A          9     -         0%
2006                 2,242         2,188      19,156      19,016       -              -            -       N/A          9     -         0%
TOTAL               10,464        10,291      95,305      93,948       -              -            -       N/A          9     -         0%




                                                                                                                                              2BV - 18
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                 COMMERCIAL
                                                          TERRITORY 05 - FRASER VALLEY

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                30,285        29,830    7,249,091    6,894,659    1,101        7,679,675         3.69     6,975       231     257     111%
2003                30,896        30,578    7,692,775    7,485,830    1,123        7,471,350         3.67     6,653       245     244     100%
2004                32,754        31,962    7,817,768    7,779,515    1,084        7,475,018         3.39     6,896       243     234      96%
2005                34,746        33,899    8,135,419    8,013,983    1,199        5,820,703         3.54     4,855       236     172      73%
2006                36,754        35,858    8,588,119    8,355,178    1,116        3,889,632         3.11     3,485       233     108      47%
TOTAL              165,434       162,128   39,483,172   38,529,165    5,623       32,336,377         3.47     5,751       238     199      84%

THIRD PARTY TOTAL

2002                30,285        29,830    8,551,266    8,155,624    1,101        9,145,545         3.69     8,307       273     307     112%
2003                30,896        30,578    9,212,571    8,922,909    1,123        9,446,123         3.67     8,412       292     309     106%
2004                32,754        31,962    9,387,513    9,329,452    1,084        8,854,411         3.39     8,168       292     277      95%
2005                34,746        33,899    9,828,591    9,656,899    1,199        5,820,703         3.54     4,855       285     172      60%
2006                36,754        35,858   10,378,793   10,115,888    1,116        3,889,632         3.11     3,485       282     108      38%
TOTAL              165,434       162,128   47,358,734   46,180,771    5,623       37,156,413         3.47     6,608       285     229      80%

ACCIDENT BENEFITS

2002                30,285        29,830      660,202      586,850      163          346,242         0.55     2,124        20      12      59%
2003                30,896        30,578      704,518      683,499      186          247,342         0.61     1,330        22       8      36%
2004                32,754        31,962      718,525      713,846      161          563,765         0.50     3,502        22      18      79%
2005                34,746        33,899      744,519      734,241      151          314,484         0.45     2,083        22       9      43%
2006                36,754        35,858      785,947      767,576      144          320,267         0.40     2,224        21       9      42%
TOTAL              165,434       162,128    3,613,711    3,486,013      805        1,792,101         0.50     2,226        22      11      51%

UNDERINSURED MOTORIST

2002                29,691        29,235      247,539      239,458      -               -             -         N/A         8     -         0%
2003                30,308        29,988      265,590      256,783          1       250,000          0.00   250,000         9         8    97%
2004                32,152        31,355      267,906      266,861      -               -             -         N/A         9     -         0%
2005                34,111        33,268      276,905      273,503      -               -             -         N/A         8     -         0%
2006                36,130        35,225      290,678      284,966      -               -             -         N/A         8     -         0%
TOTAL              162,394       159,071    1,348,618    1,321,572          1       250,000          0.00   250,000         8         2    19%




                                                                                                                                                  2BV - 19
                                                                           EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                       COMMERCIAL
                                                        TERRITORY 06 - THOMPSON OKANAGAN AREA

                                                              PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                       CLAIM
                                                                                    CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                           ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN          EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS        PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                80,019        79,417   13,219,828      12,769,004    1,967       11,811,230         2.48     6,005       161     149      92%
2003                81,711        80,611   14,098,919      13,627,000    1,830       11,373,444         2.27     6,215       169     141      83%
2004                85,394        83,899   14,689,073      14,481,434    2,035       10,894,481         2.43     5,354       173     130      75%
2005                89,575        87,669   14,961,555      14,792,397    2,117        9,550,643         2.41     4,511       169     109      65%
2006                94,677        92,184   16,117,277      15,430,578    2,046        9,622,766         2.22     4,703       167     104      62%
TOTAL              431,376       423,780   73,086,652      71,100,412    9,995       53,252,563         2.36     5,328       168     126      75%

THIRD PARTY TOTAL

2002                80,019        79,417   15,471,984      14,963,648    1,967       14,818,652         2.48     7,534       188     187      99%
2003                81,711        80,611   16,822,273      16,117,480    1,830       12,556,144         2.27     6,861       200     156      78%
2004                85,394        83,899   17,492,853      17,266,017    2,035       12,221,193         2.43     6,006       206     146      71%
2005                89,575        87,669   17,913,604      17,680,479    2,117       12,252,845         2.41     5,788       202     140      69%
2006                94,677        92,184   19,209,700      18,461,052    2,046       10,138,660         2.22     4,955       200     110      55%
TOTAL              431,376       423,780   86,910,414      84,488,675    9,995       61,987,494         2.36     6,202       199     146      73%

ACCIDENT BENEFITS

2002                80,019        79,417    1,257,829       1,141,954      293          597,832         0.37     2,040        14          8   52%
2003                81,711        80,611    1,288,306       1,268,322      306          730,444         0.38     2,387        16          9   58%
2004                85,394        83,899    1,337,687       1,319,053      268          738,211         0.32     2,755        16          9   56%
2005                89,575        87,669    1,357,610       1,344,613      309        1,042,770         0.35     3,375        15         12   78%
2006                94,677        92,184    1,486,204       1,418,250      261          372,713         0.28     1,428        15          4   26%
TOTAL              431,376       423,780    6,727,636       6,492,193    1,437        3,481,970         0.34     2,423        15          8   54%

UNDERINSURED MOTORIST

2002                78,795        78,181      614,773         600,385          1           -            0.00       -           8     -         0%
2003                80,512        79,399      663,420         639,172          1       175,000          0.00   175,000         8         2    27%
2004                84,148        82,655      679,604         673,105      -               -             -         N/A         8     -         0%
2005                88,284        86,379      692,096         686,800      -               -             -         N/A         8     -         0%
2006                93,353        90,859      733,537         712,389      -               -             -         N/A         8     -         0%
TOTAL              425,092       417,473    3,383,430       3,311,850          2       175,000          0.00    87,500         8         0     5%




                                                                                                                                                     2BV - 20
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                  COMMERCIAL
                                                            TERRITORY 07 - KOOTENAYS

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                      CLAIM
                                                                                 CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                28,805        28,658    4,174,643    4,210,286      456        1,436,118         1.59    3,149       147      50      34%
2003                28,626        28,655    3,921,883    3,977,296      414        1,767,023         1.44    4,268       139      62      44%
2004                29,996        29,475    4,044,798    4,003,000      394        2,127,458         1.34    5,400       136      72      53%
2005                30,813        30,361    4,075,281    4,041,544      430        2,015,738         1.42    4,688       133      66      50%
2006                32,494        31,696    4,367,797    4,192,903      374        1,570,858         1.18    4,200       132      50      37%
TOTAL              150,733       148,847   20,584,402   20,425,029    2,068        8,917,195         1.39    4,312       137      60      44%

THIRD PARTY TOTAL

2002                28,805        28,658    4,860,150    4,900,863      456        1,436,118         1.59    3,149       171      50      29%
2003                28,626        28,655    4,670,333    4,685,169      414        1,767,023         1.44    4,268       164      62      38%
2004                29,996        29,475    4,815,105    4,768,885      394        2,471,674         1.34    6,273       162      84      52%
2005                30,813        30,361    4,872,134    4,823,646      430        3,272,598         1.42    7,611       159     108      68%
2006                32,494        31,696    5,222,054    5,018,857      374        1,570,858         1.18    4,200       158      50      31%
TOTAL              150,733       148,847   24,439,776   24,197,420    2,068       10,518,271         1.39    5,086       163      71      43%

ACCIDENT BENEFITS

2002                28,805        28,658      435,024      396,637       45          737,015         0.16   16,378        14      26     186%
2003                28,626        28,655      437,415      432,096       57          103,247         0.20    1,811        15       4      24%
2004                29,996        29,475      449,345      445,344       45          149,352         0.15    3,319        15       5      34%
2005                30,813        30,361      449,827      448,184       41           95,687         0.14    2,334        15       3      21%
2006                32,494        31,696      496,959      472,924       32           46,085         0.10    1,440        15       1      10%
TOTAL              150,733       148,847    2,268,570    2,195,184      220        1,131,386         0.15    5,143        15       8      52%

UNDERINSURED MOTORIST

2002                28,280        28,123      209,351      204,492      -                -            -       N/A          7     -         0%
2003                28,081        28,125      219,491      213,701      -                -            -       N/A          8     -         0%
2004                29,467        28,943      226,101      223,771      -                -            -       N/A          8     -         0%
2005                30,276        29,823      227,727      226,297          1            -           0.00     -            8     -         0%
2006                31,949        31,152      243,548      235,864      -                -            -       N/A          8     -         0%
TOTAL              148,053       146,166    1,126,218    1,104,125          1            -           0.00     -            8     -         0%




                                                                                                                                                 2BV - 21
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                 COMMERCIAL
                                                          TERRITORY 08 - CARIBOO AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                               CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                12,001        11,946    2,534,628    2,526,689      203      1,459,317         1.70    7,189       212     122      58%
2003                12,300        12,169    2,471,622    2,488,178      230      1,473,524         1.89    6,407       204     121      59%
2004                13,132        12,813    2,664,305    2,599,230      203      2,158,284         1.58   10,632       203     168      83%
2005                13,897        13,555    2,834,925    2,768,435      204      1,383,974         1.50    6,784       204     102      50%
2006                14,409        14,151    2,853,383    2,785,555      188        979,574         1.33    5,210       197      69      35%
TOTAL               65,739        64,634   13,358,863   13,168,087    1,028      7,454,672         1.59    7,252       204     115      57%

THIRD PARTY TOTAL

2002                12,001        11,946    2,930,581    2,920,934      203      1,459,317         1.70    7,189       245     122       50%
2003                12,300        12,169    2,921,530    2,914,326      230      1,473,524         1.89    6,407       239     121       51%
2004                13,132        12,813    3,152,163    3,066,268      203      3,284,027         1.58   16,177       239     256      107%
2005                13,897        13,555    3,357,599    3,272,529      204      1,383,974         1.50    6,784       241     102       42%
2006                14,409        14,151    3,369,056    3,304,457      188      1,646,178         1.33    8,756       234     116       50%
TOTAL               65,739        64,634   15,730,929   15,478,515    1,028      9,247,020         1.59    8,995       239     143       60%

ACCIDENT BENEFITS

2002                12,001        11,946      248,999      227,219       14        13,462          0.12      962        19          1     6%
2003                12,300        12,169      273,908      263,678       27        23,952          0.22      887        22          2     9%
2004                13,132        12,813      294,458      286,736       21       306,659          0.16   14,603        22         24   107%
2005                13,897        13,555      311,995      306,122       26        66,291          0.19    2,550        23          5    22%
2006                14,409        14,151      311,130      306,373       24        27,338          0.17    1,139        22          2     9%
TOTAL               65,739        64,634    1,440,490    1,390,127      112       437,702          0.17    3,908        22          7    31%

UNDERINSURED MOTORIST

2002                11,807        11,744      89,395       87,353       -              -            -       N/A          7     -         0%
2003                12,122        11,984      95,381       92,386       -              -            -       N/A          8     -         0%
2004                12,954        12,632     100,256       97,846       -              -            -       N/A          8     -         0%
2005                13,720        13,376     104,628      103,038       -              -            -       N/A          8     -         0%
2006                14,240        13,973     106,941      105,089       -              -            -       N/A          8     -         0%
TOTAL               64,842        63,709     496,601      485,712       -              -            -       N/A          8     -         0%




                                                                                                                                               2BV - 22
                                                                         EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                   COMMERCIAL
                                                        TERRITORY 09 - PRINCE GEORGE AREA

                                                            PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                      CLAIM
                                                                                  CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                         ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN        EARNED   NUMBER         EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS      PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                28,162        28,059    5,884,991     5,903,848      655        4,137,662         2.33    6,317       210     147      70%
2003                28,709        28,519    5,606,805     5,725,198      650        2,876,867         2.28    4,426       201     101      50%
2004                29,351        29,203    5,666,784     5,642,378      586        3,123,683         2.01    5,331       193     107      55%
2005                31,360        30,497    6,145,514     5,950,805      603        4,046,233         1.98    6,710       195     133      68%
2006                32,585        32,186    6,343,092     6,199,419      603        2,765,062         1.87    4,586       193      86      45%
TOTAL              150,166       148,464   29,647,186    29,421,647    3,097       16,949,506         2.09    5,473       198     114      58%

THIRD PARTY TOTAL

2002                28,162        28,059    6,707,783     6,713,551      655        4,886,260         2.33    7,460       239     174      73%
2003                28,709        28,519    6,549,187     6,610,192      650        3,476,420         2.28    5,348       232     122      53%
2004                29,351        29,203    6,619,106     6,592,003      586        3,124,471         2.01    5,332       226     107      47%
2005                31,360        30,497    7,185,938     6,953,659      603        4,610,637         1.98    7,646       228     151      66%
2006                32,585        32,186    7,419,628     7,265,051      603        2,765,062         1.87    4,586       226      86      38%
TOTAL              150,166       148,464   34,481,642    34,134,456    3,097       18,862,851         2.09    6,091       230     127      55%

ACCIDENT BENEFITS

2002                28,162        28,059      512,672       472,054       70          55,856          0.25      798        17         2    12%
2003                28,709        28,519      514,556       515,205       68         161,466          0.24    2,375        18         6    31%
2004                29,351        29,203      511,533       512,038       68         242,505          0.23    3,566        18         8    47%
2005                31,360        30,497      551,499       535,420       67         120,305          0.22    1,796        18         4    22%
2006                32,585        32,186      581,971       565,692       76          98,824          0.24    1,300        18         3    17%
TOTAL              150,166       148,464    2,672,231     2,600,408      349         678,956          0.24    1,945        18         5    26%

UNDERINSURED MOTORIST

2002                27,728        27,611      202,182       197,629      -                -            -       N/A          7     -         0%
2003                28,262        28,066      215,442       209,790      -                -            -       N/A          7     -         0%
2004                28,893        28,744      214,743       215,207          1            -           0.00     -            7     -         0%
2005                30,901        30,039      226,828       222,161      -                -            -       N/A          7     -         0%
2006                32,143        31,741      240,181       234,892      -                -            -       N/A          7     -         0%
TOTAL              147,927       146,200    1,099,376     1,079,680          1            -           0.00     -            7     -         0%




                                                                                                                                                  2BV - 23
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               COMMERCIAL
                                                       TERRITORY 10 - NORTHERN COAST

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                CLAIM                      CLAIM
                                                                             CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                    ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER      EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS     INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 9,983         9,976   1,904,456   1,957,159      145        554,460         1.45    3,824       196      56      28%
2003                 9,796         9,874   1,563,315   1,679,827      165        915,451         1.67    5,548       170      93      54%
2004                 9,919         9,923   1,603,605   1,606,152      161        718,543         1.62    4,463       162      72      45%
2005                 9,954         9,899   1,562,653   1,565,019      135        470,620         1.36    3,486       158      48      30%
2006                10,255        10,110   1,708,818   1,639,044      139        436,644         1.37    3,141       162      43      27%
TOTAL               49,908        49,782   8,342,847   8,447,202      745      3,095,718         1.50    4,155       170      62      37%

THIRD PARTY TOTAL

2002                 9,983         9,976   2,197,913   2,261,139      145        554,460         1.45    3,824       227      56      25%
2003                 9,796         9,874   1,850,552   1,965,099      165        915,451         1.67    5,548       199      93      47%
2004                 9,919         9,923   1,885,923   1,898,092      161        718,543         1.62    4,463       191      72      38%
2005                 9,954         9,899   1,842,298   1,845,821      135        470,620         1.36    3,486       186      48      25%
2006                10,255        10,110   2,007,521   1,930,895      139        436,644         1.37    3,141       191      43      23%
TOTAL               49,908        49,782   9,784,207   9,901,046      745      3,095,718         1.50    4,155       199      62      31%

ACCIDENT BENEFITS

2002                 9,983         9,976     192,502     178,700       23        21,636          0.23      941        18       2      12%
2003                 9,796         9,874     170,969     177,426       23        94,663          0.23    4,116        18      10      53%
2004                 9,919         9,923     171,430     173,239       22        31,381          0.22    1,426        17       3      18%
2005                 9,954         9,899     168,112     168,053       13         6,905          0.13      531        17       1       4%
2006                10,255        10,110     186,165     177,940       12        20,836          0.12    1,736        18       2      12%
TOTAL               49,908        49,782     889,178     875,358       93       175,420          0.19    1,886        18       4      20%

UNDERINSURED MOTORIST

2002                 9,657         9,654      67,000      66,169      -              -            -       N/A          7     -         0%
2003                 9,492         9,569      69,700      67,977      -              -            -       N/A          7     -         0%
2004                 9,617         9,617      68,804      69,681      -              -            -       N/A          7     -         0%
2005                 9,650         9,594      67,234      67,797      -              -            -       N/A          7     -         0%
2006                 9,936         9,798      71,255      69,559      -              -            -       N/A          7     -         0%
TOTAL               48,352        48,232     343,993     341,184      -              -            -       N/A          7     -         0%




                                                                                                                                             2BV - 24
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                 COMMERCIAL
                                                        TERRITORY 11 - PEACE RIVER AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                               CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                17,623        17,403    3,766,635    3,795,928      330      2,460,653         1.90    7,457       218     141       65%
2003                18,453        18,010    3,789,228    3,745,162      350      1,911,581         1.94    5,462       208     106       51%
2004                18,952        18,850    3,978,194    3,920,390      357      2,368,152         1.89    6,633       208     126       60%
2005                20,819        20,020    4,503,943    4,277,530      350      4,395,597         1.75   12,559       214     220      103%
2006                22,389        21,786    4,802,274    4,645,655      366      2,366,512         1.68    6,466       213     109       51%
TOTAL               98,236        96,069   20,840,274   20,384,666    1,753     13,502,495         1.82    7,703       212     141       66%

THIRD PARTY TOTAL

2002                17,623        17,403    4,274,393    4,300,374      330      2,758,754         1.90    8,360       247     159       64%
2003                18,453        18,010    4,402,033    4,300,011      350      2,415,126         1.94    6,900       239     134       56%
2004                18,952        18,850    4,599,455    4,547,592      357      2,368,152         1.89    6,633       241     126       52%
2005                20,819        20,020    5,230,308    4,958,532      350      5,362,245         1.75   15,321       248     268      108%
2006                22,389        21,786    5,574,727    5,399,683      366      2,666,512         1.68    7,286       248     122       49%
TOTAL               98,236        96,069   24,080,916   23,506,192    1,753     15,570,789         1.82    8,882       245     162       66%

ACCIDENT BENEFITS

2002                17,623        17,403      365,784      333,031       36       120,596          0.21    3,350        19          7   36%
2003                18,453        18,010      376,294      368,455       29       133,663          0.16    4,609        20          7   36%
2004                18,952        18,850      389,937      384,778       33        23,114          0.18      700        20          1    6%
2005                20,819        20,020      428,395      412,502       42       238,398          0.21    5,676        21         12   58%
2006                22,389        21,786      456,100      441,825       23        87,492          0.11    3,804        20          4   20%
TOTAL               98,236        96,069    2,016,510    1,940,591      163       603,264          0.17    3,701        20          6   31%

UNDERINSURED MOTORIST

2002                17,400        17,179     153,554      149,144       -              -            -       N/A          9     -         0%
2003                18,224        17,786     164,400      158,666       -              -            -       N/A          9     -         0%
2004                18,709        18,619     172,545      169,886       -              -            -       N/A          9     -         0%
2005                20,571        19,777     186,947      181,346       -              -            -       N/A          9     -         0%
2006                22,126        21,522     196,726      191,434       -              -            -       N/A          9     -         0%
TOTAL               97,030        94,883     874,172      850,476       -              -            -       N/A          9     -         0%




                                                                                                                                               2BV - 25
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                COMMERCIAL
                             TERRITORY 12 - SOUTHERN VANCOUVER ISLAND AND ALL OTHER ISLANDS OFF THE WEST COAST

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                    CLAIM                       CLAIM
                                                                                 CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                34,497        34,037    8,421,857    8,167,372    1,583        7,706,911         4.65     4,869       240     226       94%
2003                35,643        34,866    8,565,278    8,449,390    1,614        9,484,921         4.63     5,877       242     272      112%
2004                36,977        36,404    8,908,448    8,758,090    1,668        6,065,798         4.58     3,637       241     167       69%
2005                38,263        37,535    9,179,810    8,973,224    1,723        6,910,143         4.59     4,011       239     184       77%
2006                39,419        39,025    9,747,600    9,490,570    1,703        5,093,532         4.36     2,991       243     131       54%
TOTAL              184,798       181,867   44,822,993   43,838,646    8,291       35,261,305         4.56     4,253       241     194       80%

THIRD PARTY TOTAL

2002                34,497        34,037    9,832,150    9,552,889    1,583        7,706,911         4.65     4,869       281     226       81%
2003                35,643        34,866   10,157,894    9,957,569    1,614       11,369,570         4.63     7,044       286     326      114%
2004                36,977        36,404   10,603,347   10,407,643    1,668        6,266,406         4.58     3,757       286     172       60%
2005                38,263        37,535   10,921,870   10,673,238    1,723        7,731,701         4.59     4,487       284     206       72%
2006                39,419        39,025   11,550,565   11,283,965    1,703        5,093,532         4.36     2,991       289     131       45%
TOTAL              184,798       181,867   53,065,826   51,875,304    8,291       38,168,120         4.56     4,604       285     210       74%

ACCIDENT BENEFITS

2002                34,497        34,037      733,047      659,553      205          317,753         0.60     1,550        19         9    48%
2003                35,643        34,866      722,160      722,117      212          213,794         0.61     1,008        21         6    30%
2004                36,977        36,404      744,208      735,522      204          141,160         0.56       692        20         4    19%
2005                38,263        37,535      762,113      747,051      218          254,959         0.58     1,170        20         7    34%
2006                39,419        39,025      824,105      796,846      175          156,985         0.45       897        20         4    20%
TOTAL              184,798       181,867    3,785,633    3,661,089    1,014        1,084,650         0.56     1,070        20         6    30%

UNDERINSURED MOTORIST

2002                33,595        33,151      302,760      292,507          2       500,000          0.01   250,000         9         15   171%
2003                34,722        33,948      334,288      317,884      -               -             -         N/A         9     -          0%
2004                36,044        35,472      348,691      342,601          2           -            0.01       -          10     -          0%
2005                37,288        36,583      359,255      351,210      -               -             -         N/A        10     -          0%
2006                38,441        38,040      374,873      369,967      -               -             -         N/A        10     -          0%
TOTAL              180,091       177,194    1,719,867    1,674,168          4       500,000          0.00   125,000         9         3     30%




                                                                                                                                                  2BV - 26
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                    COMMERCIAL
                                           TERRITORY 13 - MIDDLE VANCOUVER ISLAND/SUNSHINE COAST AREA

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                      CLAIM                      CLAIM
                                                                                   CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                          ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED       WRITTEN       EARNED   NUMBER         EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES     PREMIUMS     PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                49,089        48,439      8,723,478    8,652,135    1,153        7,547,058         2.38    6,546       179     156      87%
2003                50,282        49,473      8,515,331    8,527,013    1,176        6,993,782         2.38    5,947       172     141      82%
2004                52,955        51,777      9,089,588    8,815,770    1,215        8,947,642         2.35    7,364       170     173     101%
2005                55,056        53,947      9,248,728    9,151,969    1,242        5,351,312         2.30    4,309       170      99      58%
2006                57,849        56,525      9,918,967    9,576,110    1,174        4,278,572         2.08    3,644       169      76      45%
TOTAL              265,231       260,160     45,496,092   44,722,997    5,960       33,118,366         2.29    5,557       172     127      74%

THIRD PARTY TOTAL

2002                49,089        48,439     10,195,090   10,112,450    1,153        9,579,183         2.38    8,308       209     198      95%
2003                50,282        49,473     10,149,479   10,076,239    1,176        9,639,504         2.38    8,197       204     195      96%
2004                52,955        51,777     10,837,337   10,511,040    1,215       16,298,631         2.35   13,415       203     315     155%
2005                55,056        53,947     11,078,329   10,943,329    1,242        6,128,684         2.30    4,935       203     114      56%
2006                57,849        56,525     11,825,765   11,455,604    1,174        4,278,572         2.08    3,644       203      76      37%
TOTAL              265,231       260,160     54,086,000   53,098,662    5,960       45,924,574         2.29    7,705       204     177      86%

ACCIDENT BENEFITS

2002                49,089        48,439        847,613      763,240      171          312,172         0.35    1,826        16       6      41%
2003                50,282        49,473        948,956      896,443      160          643,088         0.32    4,019        18      13      72%
2004                52,955        51,777      1,004,940      977,041      187          206,529         0.36    1,104        19       4      21%
2005                55,056        53,947      1,022,949    1,013,679      171          408,228         0.32    2,387        19       8      40%
2006                57,849        56,525      1,090,506    1,057,855      151          211,402         0.27    1,400        19       4      20%
TOTAL              265,231       260,160      4,914,964    4,708,259      840        1,781,419         0.32    2,121        18       7      38%

UNDERINSURED MOTORIST

2002                48,241        47,581        349,258      339,328      -               -             -        N/A         7     -         0%
2003                49,422        48,623        378,518      362,456      -               -             -        N/A         7     -         0%
2004                52,096        50,912        398,019      388,833          1           -            0.00      -           8     -         0%
2005                54,191        53,065        408,437      402,995          1        20,000          0.00   20,000         8         0     5%
2006                56,961        55,626        433,370      421,492      -               -             -        N/A         8     -         0%
TOTAL              260,912       255,807      1,967,602    1,915,104          2        20,000          0.00   10,000         7         0     1%




                                                                                                                                                   2BV - 27
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                   COMMERCIAL
                                                   TERRITORY 14 - NORTHERN VANCOUVER ISLAND

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                               CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 9,741         9,627    2,021,593    2,038,223      186      1,282,490         1.93    6,895       212     133      63%
2003                 9,637         9,715    1,817,468    1,914,138      165        905,413         1.70    5,487       197      93      47%
2004                 9,942         9,832    1,850,393    1,840,872      189      1,198,597         1.92    6,342       187     122      65%
2005                10,496        10,207    1,962,018    1,912,632      158      1,602,744         1.55   10,144       187     157      84%
2006                10,909        10,674    2,092,571    2,033,480      163        542,364         1.53    3,327       191      51      27%
TOTAL               50,725        50,055    9,744,043    9,739,344      861      5,531,607         1.72    6,425       195     111      57%

THIRD PARTY TOTAL

2002                 9,741         9,627    2,337,288    2,350,752      186      1,282,490         1.93    6,895       244     133      55%
2003                 9,637         9,715    2,145,326    2,235,857      165      1,113,904         1.70    6,751       230     115      50%
2004                 9,942         9,832    2,190,614    2,175,509      189      1,198,597         1.92    6,342       221     122      55%
2005                10,496        10,207    2,329,410    2,263,771      158      1,602,744         1.55   10,144       222     157      71%
2006                10,909        10,674    2,488,791    2,418,586      163        542,364         1.53    3,327       227      51      22%
TOTAL               50,725        50,055   11,491,429   11,444,475      861      5,740,098         1.72    6,667       229     115      50%

ACCIDENT BENEFITS

2002                 9,741         9,627      200,519      175,699       27        46,970          0.28    1,740        18         5    27%
2003                 9,637         9,715      212,711      207,000       23        47,291          0.24    2,056        21         5    23%
2004                 9,942         9,832      216,704      215,470       21         6,581          0.21      313        22         1     3%
2005                10,496        10,207      229,505      224,049       20        19,992          0.20    1,000        22         2     9%
2006                10,909        10,674      244,169      237,176       17        25,171          0.16    1,481        22         2    11%
TOTAL               50,725        50,055    1,103,608    1,059,394      108       146,006          0.22    1,352        21         3    14%

UNDERINSURED MOTORIST

2002                 9,558         9,438      69,592       66,908       -              -            -       N/A          7     -         0%
2003                 9,455         9,531      71,695       70,804       -              -            -       N/A          7     -         0%
2004                 9,755         9,648      72,529       72,199       -              -            -       N/A          7     -         0%
2005                10,283        10,005      77,490       75,244       -              -            -       N/A          8     -         0%
2006                10,684        10,449      81,673       79,641       -              -            -       N/A          8     -         0%
TOTAL               49,735        49,071     372,979      364,796       -              -            -       N/A          7     -         0%




                                                                                                                                               2BV - 28
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                MOTORCYCLE
                                                        TERRITORY 01 - LOWER MAINLAND

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER       EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS      INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                11,593        11,588    4,450,415    4,442,136      574      2,118,249         4.95     3,690       383     183      48%
2003                12,016        11,965    4,448,158    4,457,981      602      3,303,075         5.03     5,487       373     276      74%
2004                13,621        13,341    5,073,733    4,972,936      635      2,336,651         4.76     3,680       373     175      47%
2005                14,903        14,546    5,479,212    5,386,679      611      2,843,493         4.20     4,654       370     195      53%
2006                16,194        15,904    6,243,810    6,085,367      716      2,464,754         4.50     3,442       383     155      41%
TOTAL               68,327        67,344   25,695,328   25,345,100    3,138     13,066,222         4.66     4,164       376     194      52%

THIRD PARTY TOTAL

2002                11,593        11,588    5,200,879    5,192,421      574      3,406,018         4.95     5,934       448     294      66%
2003                12,016        11,965    5,194,843    5,205,871      602      4,310,001         5.03     7,159       435     360      83%
2004                13,621        13,341    5,922,887    5,804,634      635      2,527,371         4.76     3,980       435     189      44%
2005                14,903        14,546    6,402,754    6,294,611      611      3,610,665         4.20     5,909       433     248      57%
2006                16,194        15,904    7,251,310    7,074,551      716      2,554,571         4.50     3,568       445     161      36%
TOTAL               68,327        67,344   29,972,673   29,572,087    3,138     16,408,626         4.66     5,229       439     244      55%

ACCIDENT BENEFITS

2002                11,593        11,588    2,262,337    2,143,561      459      2,875,003         3.96     6,264       185     248     134%
2003                12,016        11,965    2,440,058    2,416,788      503      2,420,363         4.20     4,812       202     202     100%
2004                13,621        13,341    2,768,265    2,715,544      515      3,694,615         3.86     7,174       204     277     136%
2005                14,903        14,546    2,976,665    2,933,133      495      3,491,594         3.40     7,054       202     240     119%
2006                16,194        15,904    3,400,559    3,316,360      569      2,972,642         3.58     5,224       209     187      90%
TOTAL               68,327        67,344   13,847,884   13,525,387    2,541     15,454,217         3.77     6,082       201     229     114%

UNDERINSURED MOTORIST

2002                11,593        11,588      255,971      251,920        2         12,970         0.02     6,485        22       1       5%
2003                12,016        11,965      249,351      254,471        8        927,193         0.07   115,899        21      77     364%
2004                13,621        13,341      281,810      276,181        4      1,736,133         0.03   434,033        21     130     629%
2005                14,903        14,546      307,172      299,452        6      2,919,299         0.04   486,550        21     201     975%
2006                16,194        15,904      355,162      343,957        1         33,000         0.01    33,000        22       2      10%
TOTAL               68,327        67,343    1,449,466    1,425,980       21      5,628,595         0.03   268,028        21      84     395%




                                                                                                                                                2BV - 29
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                      MOTORCYCLE
                                                       TERRITORY 02 - MAPLE RIDGE/PITT MEADOWS

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                      CLAIM                       CLAIM
                                                                                   CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                          ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN          EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS        PREMIUMS OF CLAIMS       INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   781           755     330,933         316,482       29          139,598         3.84     4,814       419     185      44%
2003                   755           784     333,496         341,211       22          229,056         2.81    10,412       435     292      67%
2004                   914           896     407,379         399,201       23          337,818         2.57    14,688       446     377      85%
2005                 1,034         1,008     453,565         448,748       45          319,282         4.47     7,095       445     317      71%
2006                 1,164         1,158     545,798         534,349       33          194,214         2.85     5,885       461     168      36%
TOTAL                4,648         4,601   2,071,171       2,039,991      152        1,219,967         3.30     8,026       443     265      60%

THIRD PARTY TOTAL

2002                   781           755     383,724         367,614       29          139,598         3.84     4,814       487     185      38%
2003                   755           784     387,407         395,774       22          229,056         2.81    10,412       505     292      58%
2004                   914           896     472,519         463,136       23          337,818         2.57    14,688       517     377      73%
2005                 1,034         1,008     524,246         519,276       45          916,749         4.47    20,372       515     910     177%
2006                 1,164         1,158     630,109         616,217       33          194,214         2.85     5,885       532     168      32%
TOTAL                4,648         4,601   2,398,005       2,362,018      152        1,817,435         3.30    11,957       513     395      77%

ACCIDENT BENEFITS

2002                   781           755     147,661         136,235       34          604,631         4.50    17,783       180     801     444%
2003                   755           784     149,724         153,445       31          589,967         3.95    19,031       196     753     384%
2004                   914           896     183,641         180,008       15           94,971         1.67     6,331       201     106      53%
2005                 1,034         1,008     204,383         202,196       43        1,011,970         4.27    23,534       201   1,004     500%
2006                 1,164         1,158     244,598         240,148       38          180,136         3.28     4,740       207     156      75%
TOTAL                4,648         4,601     930,007         912,032      161        2,481,675         3.50    15,414       198     539     272%

UNDERINSURED MOTORIST

2002                   781           755      16,200          15,487      -               -             -         N/A        21     -          0%
2003                   755           784      14,914          15,905          3       336,060          0.38   112,020        20     429     2113%
2004                   914           896      18,290          17,877      -               -             -         N/A        20     -          0%
2005                 1,034         1,008      20,455          19,952      -               -             -         N/A        20     -          0%
2006                 1,164         1,158      24,638          24,250      -               -             -         N/A        21     -          0%
TOTAL                4,648         4,601      94,497          93,471          3       336,060          0.07   112,020        20       73     360%




                                                                                                                                                    2BV - 30
                                                                         EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                    MOTORCYCLE
                                                       TERRITORY 03 - SQUAMISH WHISTLER AREA

                                                            PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                      CLAIM                       CLAIM
                                                                                   CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                          ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN         EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS       PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   284           288     108,736        109,767           8       209,021          2.77   26,128        381     725     190%
2003                   309           308     127,999        127,179           6        (1,152)         1.95     (192)       413      (4)     -1%
2004                   348           342     145,300        141,576          12        79,604          3.51    6,634        414     233      56%
2005                   379           368     155,410        152,262           8        76,988          2.18    9,623        414     209      51%
2006                   372           373     159,070        158,491           8         2,897          2.14      362        425       8       2%
TOTAL                1,691         1,679     696,515        689,276          42       367,358          2.50    8,747        410     219      53%

THIRD PARTY TOTAL

2002                   284           288     127,923        129,034           8       306,399          2.77   38,300        447   1,062     237%
2003                   309           308     150,733        149,596           6        (1,152)         1.95     (192)       486      (4)     -1%
2004                   348           342     170,430        166,322          12        79,604          3.51    6,634        486     233      48%
2005                   379           368     180,413        177,240           8        76,988          2.18    9,623        482     209      43%
2006                   372           373     183,286        182,862           8         2,897          2.14      362        490       8       2%
TOTAL                1,691         1,679     812,785        805,054          42       464,736          2.50   11,065        479     277      58%

ACCIDENT BENEFITS

2002                   284           288      51,225         50,429           6         8,989          2.08    1,498        175      31      18%
2003                   309           308      59,098         58,843           5         5,522          1.63    1,104        191      18       9%
2004                   348           342      67,051         65,329          10        99,079          2.92    9,908        191     290     152%
2005                   379           368      71,761         70,473           7        90,163          1.90   12,880        192     245     128%
2006                   372           373      73,785         73,455           6        31,467          1.61    5,244        197      84      43%
TOTAL                1,691         1,679     322,920        318,529          34       235,220          2.02    6,918        190     140      74%

UNDERINSURED MOTORIST

2002                   284           288       6,049          6,075      -                -             -       N/A          21     -         0%
2003                   309           308       6,639          6,591      -                -             -       N/A          21     -         0%
2004                   348           342       7,345          7,237      -                -             -       N/A          21     -         0%
2005                   379           368       7,927          7,706      -                -             -       N/A          21     -         0%
2006                   372           373       8,097          8,076      -                -             -       N/A          22     -         0%
TOTAL                1,691         1,679      36,057         35,685      -                -             -       N/A          21     -         0%




                                                                                                                                                    2BV - 31
                                                                       EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                  MOTORCYCLE
                                                   TERRITORY 04 - PEMBERTON AREA/HOPE AREA

                                                          PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                                CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                       ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER         EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS        INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   101          101       32,034      32,645       -               -            -        N/A       324     -         0%
2003                   104          104       32,281      32,293           1         1,886         0.96    1,886       310         18    6%
2004                   119          121       38,795      38,738           2         3,220         1.65    1,610       320         27    8%
2005                   122          118       41,959      40,918           2           -           1.69      -         346     -         0%
2006                   123          119       44,280      43,239           1           -           0.84      -         362     -         0%
TOTAL                  569          564      189,349     187,833           6         5,106         1.06      851       333         9     3%

THIRD PARTY TOTAL

2002                   101          101       36,060      36,769       -               -            -        N/A       365     -         0%
2003                   104          104       36,293      36,257           1         1,886         0.96    1,886       348       18      5%
2004                   119          121       44,112      43,983           2         3,220         1.65    1,610       363      27       7%
2005                   122          118       48,229      47,004           2           -           1.69      -         398     -         0%
2006                   123          119       50,289      49,081           1           -           0.84      -         411     -         0%
TOTAL                  569          564      214,983     213,094           6         5,106         1.06      851       378        9      2%

ACCIDENT BENEFITS

2002                   101          101       14,868      14,754       -               -            -        N/A       146     -          0%
2003                   104          104       15,329      15,289           1           297         0.96      297       147        3       2%
2004                   119          121       18,514      18,515           3       182,278         2.47   60,759       153   1,503      984%
2005                   122          118       19,826      19,384           1         2,272         0.85    2,272       164       19      12%
2006                   123          119       21,054      20,510       -               -            -        N/A       172     -          0%
TOTAL                  569          564       89,591      88,452           5       184,847         0.89   36,969       157     328      209%

UNDERINSURED MOTORIST

2002                   101          101        1,971       1,971       -               -            -       N/A         20     -         0%
2003                   104          104        2,076       2,075       -               -            -       N/A         20     -         0%
2004                   119          121        2,376       2,396       -               -            -       N/A         20     -         0%
2005                   122          118        2,374       2,293       -               -            -       N/A         19     -         0%
2006                   123          119        2,564       2,482       -               -            -       N/A         21     -         0%
TOTAL                  569          564       11,361      11,218       -               -            -       N/A         20     -         0%




                                                                                                                                               2BV - 32
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               MOTORCYCLE
                                                        TERRITORY 05 - FRASER VALLEY

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS       INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 1,915         1,909     800,201     798,665       51          683,203         2.67    13,396       418     358      86%
2003                 2,067         2,057     885,061     878,310       53          340,849         2.58     6,431       427     166      39%
2004                 2,445         2,393   1,039,048   1,022,320       61          839,668         2.55    13,765       427     351      82%
2005                 2,751         2,679   1,179,164   1,153,392       71          334,722         2.65     4,714       431     125      29%
2006                 2,989         2,950   1,353,836   1,323,457       74          363,212         2.51     4,908       449     123      27%
TOTAL               12,167        11,988   5,257,310   5,176,145      310        2,561,654         2.59     8,263       432     214      49%

THIRD PARTY TOTAL

2002                 1,915         1,909     917,873     915,807       51        1,198,845         2.67    23,507       480     628     131%
2003                 2,067         2,057   1,012,131   1,004,522       53          340,849         2.58     6,431       488     166      34%
2004                 2,445         2,393   1,189,130   1,170,109       61          962,447         2.55    15,778       489     402      82%
2005                 2,751         2,679   1,352,913   1,322,333       71          381,936         2.65     5,379       494     143      29%
2006                 2,989         2,950   1,549,693   1,515,924       74          363,212         2.51     4,908       514     123      24%
TOTAL               12,167        11,988   6,021,740   5,928,695      310        3,247,287         2.59    10,475       495     271      55%

ACCIDENT BENEFITS

2002                 1,915         1,909     341,738     331,729       60          756,250         3.14    12,604       174     396     228%
2003                 2,067         2,057     383,785     380,359       66          650,329         3.21     9,853       185     316     171%
2004                 2,445         2,393     448,574     441,560       63        1,071,314         2.63    17,005       184     448     243%
2005                 2,751         2,679     506,350     496,045       65          606,410         2.43     9,329       185     226     122%
2006                 2,989         2,950     581,337     568,992       61          573,751         2.07     9,406       193     194     101%
TOTAL               12,167        11,988   2,261,784   2,218,685      315        3,658,055         2.63    11,613       185     305     165%

UNDERINSURED MOTORIST

2002                 1,915         1,909      40,752      40,222          1         97,220         0.05    97,220        21       51     242%
2003                 2,067         2,057      41,967      42,275      -                -            -         N/A        21     -          0%
2004                 2,445         2,393      48,980      48,122          3        751,200         0.13   250,400        20     314     1561%
2005                 2,751         2,679      54,676      53,181          1        320,000         0.04   320,000        20     119      602%
2006                 2,989         2,950      62,944      61,514      -                -            -         N/A        21     -          0%
TOTAL               12,167        11,988     249,319     245,315          5      1,168,420         0.04   233,684        20       97     476%




                                                                                                                                                2BV - 33
                                                                           EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                       MOTORCYCLE
                                                        TERRITORY 06 - THOMPSON OKANAGAN AREA

                                                              PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                       CLAIM
                                                                                    CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                           ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN          EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS        PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 3,747         3,716    1,464,571       1,453,812       97          875,130         2.61     9,022       391     236      60%
2003                 4,130         4,110    1,628,793       1,626,197      131          771,637         3.19     5,890       396     188      47%
2004                 4,772         4,738    1,901,541       1,883,857      121        1,221,166         2.55    10,092       398     258      65%
2005                 5,496         5,404    2,182,071       2,157,332      127        1,480,147         2.35    11,655       399     274      69%
2006                 6,331         6,274    2,641,678       2,610,743      148          529,084         2.36     3,575       416      84      20%
TOTAL               24,477        24,244    9,818,654       9,731,941      624        4,877,163         2.57     7,816       401     201      50%

THIRD PARTY TOTAL

2002                 3,747         3,716    1,691,261       1,678,348       97        1,259,468         2.61    12,984       452     339      75%
2003                 4,130         4,110    1,874,176       1,872,480      131          771,637         3.19     5,890       456     188      41%
2004                 4,772         4,738    2,190,101       2,168,973      121        1,696,290         2.55    14,019       458     358      78%
2005                 5,496         5,404    2,528,405       2,499,551      127        1,869,695         2.35    14,722       463     346      75%
2006                 6,331         6,274    3,055,733       3,019,296      148          529,084         2.36     3,575       481      84      18%
TOTAL               24,477        24,244   11,339,676      11,238,648      624        6,126,173         2.57     9,818       464     253      55%

ACCIDENT BENEFITS

2002                 3,747         3,716      657,454         645,235      101          745,250         2.72     7,379       174     201     116%
2003                 4,130         4,110      749,915         747,585      125          825,837         3.04     6,607       182     201     110%
2004                 4,772         4,738      875,027         867,246      124        1,116,420         2.62     9,003       183     236     129%
2005                 5,496         5,404    1,001,380         991,215      156        2,005,507         2.89    12,856       183     371     202%
2006                 6,331         6,274    1,213,089       1,199,546      151          961,577         2.41     6,368       191     153      80%
TOTAL               24,477        24,244    4,496,865       4,450,826      657        5,654,591         2.71     8,607       184     233     127%

UNDERINSURED MOTORIST

2002                 3,747         3,716      74,110          73,379           3        170,232         0.08    56,744        20       46     232%
2003                 4,130         4,110      82,271          82,034           1        864,800         0.02   864,800        20     210     1054%
2004                 4,772         4,738      94,826          94,270           1        150,000         0.02   150,000        20       32     159%
2005                 5,496         5,404     108,754         106,735           3      1,326,075         0.06   442,025        20     245     1242%
2006                 6,331         6,274     134,039         132,298       -                -            -         N/A        21     -          0%
TOTAL               24,477        24,244     494,000         488,715           8      2,511,107         0.03   313,888        20     104      514%




                                                                                                                                                     2BV - 34
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                MOTORCYCLE
                                                          TERRITORY 07 - KOOTENAYS

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                               CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER        EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS       INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 1,231         1,232     452,245     451,399       13          52,105          1.06    4,008       366      42      12%
2003                 1,365         1,371     493,101     496,993       27         407,618          1.97   15,097       363     297      82%
2004                 1,560         1,557     572,629     570,308       24          20,035          1.54      835       366      13       4%
2005                 1,684         1,673     623,348     617,341       24         414,519          1.43   17,272       369     248      67%
2006                 1,837         1,824     709,279     705,586       29          49,443          1.59    1,705       387      27       7%
TOTAL                7,677         7,658   2,850,602   2,841,627      117         943,720          1.53    8,066       371     123      33%

THIRD PARTY TOTAL

2002                 1,231         1,232     510,832     509,792       13           52,105         1.06    4,008       414      42      10%
2003                 1,365         1,371     555,849     560,325       27          473,172         1.97   17,525       409     345      84%
2004                 1,560         1,557     647,226     644,148       24           20,035         1.54      835       414      13       3%
2005                 1,684         1,673     707,948     701,443       24          520,649         1.43   21,694       419     311      74%
2006                 1,837         1,824     803,130     799,249       29           49,443         1.59    1,705       438      27       6%
TOTAL                7,677         7,658   3,224,985   3,214,957      117        1,115,404         1.53    9,533       420     146      35%

ACCIDENT BENEFITS

2002                 1,231         1,232     194,640     193,203       28          639,770         2.27   22,849       157     519     331%
2003                 1,365         1,371     223,608     225,017       37          202,303         2.70    5,468       164     148      90%
2004                 1,560         1,557     259,311     258,388       27          278,625         1.73   10,319       166     179     108%
2005                 1,684         1,673     281,633     279,656       29          629,560         1.73   21,709       167     376     225%
2006                 1,837         1,824     321,326     319,698       34          336,518         1.86    9,898       175     184     105%
TOTAL                7,677         7,658   1,280,518   1,275,962      155        2,086,776         2.02   13,463       167     272     164%

UNDERINSURED MOTORIST

2002                 1,231         1,232      24,345      24,136      -               -             -       N/A         20     -         0%
2003                 1,365         1,371      27,204      27,435      -               -             -       N/A         20     -         0%
2004                 1,560         1,557      30,946      30,961      -               -             -       N/A         20     -         0%
2005                 1,684         1,673      33,369      33,105          1           866          0.06     866         20         1     3%
2006                 1,837         1,824      38,972      38,632      -               -             -       N/A         21     -         0%
TOTAL                7,677         7,658     154,836     154,268          1           866          0.01     866         20         0     1%




                                                                                                                                               2BV - 35
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                MOTORCYCLE
                                                         TERRITORY 08 - CARIBOO AREA

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                                CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                       ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER         EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS        INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   254           253     104,453     103,974           5       237,495         1.98   47,499       411     938     228%
2003                   251           253     104,687     105,969           6        23,039         2.37    3,840       419      91      22%
2004                   304           304     127,954     127,171           3         1,361         0.99      454       418       4       1%
2005                   346           341     145,530     144,078           4         3,367         1.17      842       422      10       2%
2006                   401           398     179,505     177,959           6        14,288         1.51    2,381       447      36       8%
TOTAL                1,557         1,549     662,129     659,151          24       279,549         1.55   11,648       426     180      42%

THIRD PARTY TOTAL

2002                   254           253     118,454     117,863        5          247,339         1.98   49,468       466     977     210%
2003                   251           253     117,527     118,936        6           23,039         2.37    3,840       471      91      19%
2004                   304           304     143,182     142,436        3            1,361         0.99      454       468       4       1%
2005                   346           341     163,021     161,548        4            3,367         1.17      842       473      10       2%
2006                   401           398     201,301     199,370        6           14,288         1.51    2,381       501      36       7%
TOTAL                1,557         1,549     743,485     740,152       24          289,393         1.55   12,058       478     187      39%

ACCIDENT BENEFITS

2002                   254           253      43,641      43,240        8           89,265         3.16   11,158       171     353     206%
2003                   251           253      43,694      44,203        7           60,669         2.77    8,667       175     240     137%
2004                   304           304      53,289      52,892        2            6,452         0.66    3,226       174      21      12%
2005                   346           341      60,355      59,971        4           33,237         1.17    8,309       176      97      55%
2006                   401           398      74,670      74,037        7           16,285         1.76    2,326       186      41      22%
TOTAL                1,557         1,549     275,649     274,343       28          205,908         1.81    7,354       177     133      75%

UNDERINSURED MOTORIST

2002                   254           253       4,993       4,964      -                -            -       N/A         20     -         0%
2003                   251           253       4,965       5,003      -                -            -       N/A         20     -         0%
2004                   304           304       6,018       6,017      -                -            -       N/A         20     -         0%
2005                   346           341       6,826       6,710      -                -            -       N/A         20     -         0%
2006                   401           398       8,465       8,385      -                -            -       N/A         21     -         0%
TOTAL                1,557         1,549      31,267      31,080      -                -            -       N/A         20     -         0%




                                                                                                                                               2BV - 36
                                                                       EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                 MOTORCYCLE
                                                       TERRITORY 09 - PRINCE GEORGE AREA

                                                          PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                   CLAIM                       CLAIM
                                                                                CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                       ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN       EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS     PREMIUMS OF CLAIMS       INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   802           804     325,559      326,080       15              473         1.86        32       405       1       0%
2003                   846           853     330,767      333,107        9          207,904         1.06    23,100       391     244      62%
2004                   963           962     378,833      378,706       21          494,447         2.18    23,545       394     514     131%
2005                 1,025         1,021     404,445      401,302       27          204,227         2.64     7,564       393     200      51%
2006                 1,139         1,142     479,946      480,011       26          215,151         2.28     8,275       420     188      45%
TOTAL                4,776         4,782   1,919,550    1,919,205       98        1,122,203         2.05    11,451       401     235      58%

THIRD PARTY TOTAL

2002                   802           804     372,319      373,080       15              473         1.86        32       464       1       0%
2003                   846           853     377,357      380,332        9          404,695         1.06    44,966       446     475     106%
2004                   963           962     434,323      433,945       21        1,419,659         2.18    67,603       451   1,476     327%
2005                 1,025         1,021     464,743      461,200       27          204,227         2.64     7,564       452     200      44%
2006                 1,139         1,142     549,957      550,302       26          215,151         2.28     8,275       482     188      39%
TOTAL                4,776         4,782   2,198,699    2,198,859       98        2,244,205         2.05    22,900       460     469     102%

ACCIDENT BENEFITS

2002                   802           804     151,070      150,118       18          292,767         2.24    16,265       187     364     195%
2003                   846           853     163,867      164,783       19          316,068         2.23    16,635       193     371     192%
2004                   963           962     188,286      188,067       25          534,942         2.60    21,398       196     556     284%
2005                 1,025         1,021     200,447      199,802       31          410,903         3.04    13,255       196     402     206%
2006                 1,139         1,142     236,821      237,019       26          229,717         2.28     8,835       207     201      97%
TOTAL                4,776         4,782     940,491      939,788      119        1,784,398         2.49    14,995       197     373     190%

UNDERINSURED MOTORIST

2002                   802           804      15,966       15,943          1       241,853          0.12   241,853        20     301     1517%
2003                   846           853      16,726       16,905      -               -             -         N/A        20     -          0%
2004                   963           962      19,016       18,987          1       125,000          0.10   125,000        20     130      658%
2005                 1,025         1,021      19,932       19,846      -               -             -         N/A        19     -          0%
2006                 1,139         1,142      23,909       23,938      -               -             -         N/A        21     -          0%
TOTAL                4,776         4,782      95,549       95,620          2       366,853          0.04   183,427        20       77     384%




                                                                                                                                                 2BV - 37
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               MOTORCYCLE
                                                       TERRITORY 10 - NORTHERN COAST

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                                CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                       ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER         EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS        INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   274           268      97,659      96,793           1           -           0.37      -         361     -         0%
2003                   283           293      98,007     101,325           2        93,144         0.68   46,572       346     318      92%
2004                   324           319     110,831     108,767           5        83,519         1.57   16,704       340     261      77%
2005                   395           390     131,572     130,497           6           -           1.54      -         335     -         0%
2006                   423           425     149,595     149,334           7        42,518         1.65    6,074       351     100      28%
TOTAL                1,700         1,695     587,664     586,718          21       219,180         1.24   10,437       346     129      37%

THIRD PARTY TOTAL

2002                   274           268     112,436     111,523        1              -           0.37      -         416     -         0%
2003                   283           293     112,812     116,626        2           93,144         0.68   46,572       398     318      80%
2004                   324           319     127,454     125,063        5           83,519         1.57   16,704       391     261      67%
2005                   395           390     151,217     149,916        6              -           1.54      -         385     -         0%
2006                   423           425     171,255     171,107        7           42,518         1.65    6,074       402     100      25%
TOTAL                1,700         1,695     675,174     674,236       21          219,180         1.24   10,437       398     129      33%

ACCIDENT BENEFITS

2002                   274           268      42,568      41,627        1            3,544         0.37    3,544       155      13       9%
2003                   283           293      42,068      43,542        5           25,141         1.71    5,028       149      86      58%
2004                   324           319      47,698      46,847        6           38,115         1.88    6,352       147     119      81%
2005                   395           390      56,212      55,704        5           13,226         1.28    2,645       143      34      24%
2006                   423           425      63,816      63,832        8           18,427         1.88    2,303       150      43      29%
TOTAL                1,700         1,695     252,362     251,551       25           98,453         1.47    3,938       148      58      39%

UNDERINSURED MOTORIST

2002                   274           268       5,426       5,243      -                -            -       N/A         20     -         0%
2003                   283           293       5,630       5,845      -                -            -       N/A         20     -         0%
2004                   324           319       6,472       6,382      -                -            -       N/A         20     -         0%
2005                   395           390       7,835       7,710      -                -            -       N/A         20     -         0%
2006                   423           425       8,913       8,948      -                -            -       N/A         21     -         0%
TOTAL                1,700         1,695      34,276      34,129      -                -            -       N/A         20     -         0%




                                                                                                                                               2BV - 38
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               MOTORCYCLE
                                                       TERRITORY 11 - PEACE RIVER AREA

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                                CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                       ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER         EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS        INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   257           258     104,690     105,185           6       111,385         2.32   18,564       407     431     106%
2003                   316           315     129,720     129,800           5        15,327         1.59    3,065       412      49      12%
2004                   378           376     159,354     158,129           8        20,360         2.13    2,545       421      54      13%
2005                   440           437     186,773     186,274           4           673         0.91      168       426       2       0%
2006                   537           532     241,671     239,576           5        40,065         0.94    8,013       450      75      17%
TOTAL                1,927         1,919     822,208     818,963          28       187,810         1.46    6,708       427      98      23%

THIRD PARTY TOTAL

2002                   257           258     120,272     120,802        6          111,385         2.32   18,564       468     431      92%
2003                   316           315     148,234     148,349        5           15,327         1.59    3,065       471      49      10%
2004                   378           376     182,926     181,408        8           20,360         2.13    2,545       483      54      11%
2005                   440           437     214,920     214,341        4              673         0.91      168       490       2       0%
2006                   537           532     276,770     274,559        5           40,065         0.94    8,013       516      75      15%
TOTAL                1,927         1,919     943,122     939,458       28          187,810         1.46    6,708       490      98      20%

ACCIDENT BENEFITS

2002                   257           258      47,136      46,804        8           65,830         3.10    8,229       181     255      141%
2003                   316           315      57,488      57,505        8          584,715         2.54   73,089       183   1,856     1017%
2004                   378           376      70,119      69,667       11           24,219         2.93    2,202       185      64       35%
2005                   440           437      81,911      81,847        6           81,931         1.37   13,655       187     187      100%
2006                   537           532     105,773     104,931        8            8,734         1.50    1,092       197      16        8%
TOTAL                1,927         1,919     362,427     360,754       41          765,429         2.14   18,669       188     399      212%

UNDERINSURED MOTORIST

2002                   257           258       5,146       5,172      -                -            -       N/A         20     -         0%
2003                   316           315       6,426       6,399      -                -            -       N/A         20     -         0%
2004                   378           376       7,561       7,536      -                -            -       N/A         20     -         0%
2005                   440           437       8,799       8,736      -                -            -       N/A         20     -         0%
2006                   537           532      11,449      11,379      -                -            -       N/A         21     -         0%
TOTAL                1,927         1,919      39,381      39,223      -                -            -       N/A         20     -         0%




                                                                                                                                               2BV - 39
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                MOTORCYCLE
                             TERRITORY 12 - SOUTHERN VANCOUVER ISLAND AND ALL OTHER ISLANDS OFF THE WEST COAST

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                       CLAIM
                                                                               CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS       INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 4,107         4,065   1,324,594   1,316,462      153          810,003         3.76     5,294       324     199      62%
2003                 4,680         4,513   1,453,987   1,422,519      147          535,529         3.26     3,643       315     119      38%
2004                 5,369         5,161   1,673,232   1,613,984      149          777,501         2.89     5,218       313     151      48%
2005                 6,096         5,801   1,854,493   1,790,202      178          788,491         3.07     4,430       309     136      44%
2006                 6,715         6,592   2,139,561   2,066,892      161          201,064         2.44     1,249       314      31      10%
TOTAL               26,967        26,133   8,445,867   8,210,060      788        3,112,589         3.02     3,950       314     119      38%

THIRD PARTY TOTAL

2002                 4,107         4,065   1,542,119   1,531,386      153          810,003         3.76     5,294       377     199      53%
2003                 4,680         4,513   1,690,659   1,655,033      147          830,751         3.26     5,651       367     184      50%
2004                 5,369         5,161   1,943,987   1,875,111      149          777,501         2.89     5,218       363     151      41%
2005                 6,096         5,801   2,157,469   2,082,644      178          788,491         3.07     4,430       359     136      38%
2006                 6,715         6,592   2,477,856   2,398,363      161          201,064         2.44     1,249       364      31       8%
TOTAL               26,967        26,133   9,812,090   9,542,537      788        3,407,811         3.02     4,325       365     130      36%

ACCIDENT BENEFITS

2002                 4,107         4,065     588,520     557,878      119          890,913         2.93     7,487       137     219      160%
2003                 4,680         4,513     650,884     635,646      128          757,494         2.84     5,918       141     168      119%
2004                 5,369         5,161     747,959     721,905      148          829,430         2.87     5,604       140     161      115%
2005                 6,096         5,801     827,779     802,596      159          673,088         2.74     4,233       138     116       84%
2006                 6,715         6,592     953,023     925,604      144          580,543         2.18     4,032       140      88       63%
TOTAL               26,967        26,133   3,768,165   3,643,630      698        3,731,467         2.67     5,346       139     143      102%

UNDERINSURED MOTORIST

2002                 4,107         4,065      82,444      80,657          1       110,000          0.02   110,000        20         27   136%
2003                 4,680         4,513      96,317      92,235          1       184,804          0.02   184,804        20         41   200%
2004                 5,369         5,161     110,593     106,224          1       200,000          0.02   200,000        21         39   188%
2005                 6,096         5,801     125,909     119,422          1       201,000          0.02   201,000        21         35   168%
2006                 6,715         6,592     146,656     141,345      -               -             -         N/A        21     -          0%
TOTAL               26,967        26,133     561,919     539,883          4       695,804          0.02   173,951        21         27   129%




                                                                                                                                                2BV - 40
                                                                         EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                   MOTORCYCLE
                                           TERRITORY 13 - MIDDLE VANCOUVER ISLAND/SUNSHINE COAST AREA

                                                            PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                       CLAIM
                                                                                  CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                         ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED       WRITTEN       EARNED   NUMBER        EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES     PREMIUMS     PREMIUMS OF CLAIMS       INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                 3,051         3,072      1,158,802   1,152,601       60          143,661         1.95     2,394       375      47      12%
2003                 3,438         3,372      1,297,118   1,278,850       71          514,394         2.11     7,245       379     153      40%
2004                 4,074         3,958      1,529,635   1,498,618       81          732,602         2.05     9,044       379     185      49%
2005                 4,492         4,372      1,700,872   1,664,683       86          389,420         1.97     4,528       381      89      23%
2006                 5,023         4,964      2,018,854   1,972,608       89          597,131         1.79     6,709       397     120      30%
TOTAL               20,077        19,738      7,705,281   7,567,360      387        2,377,208         1.96     6,143       383     120      31%

THIRD PARTY TOTAL

2002                 3,051         3,072      1,325,709   1,320,005       60          143,661         1.95     2,394       430      47      11%
2003                 3,438         3,372      1,486,214   1,464,346       71          734,414         2.11    10,344       434     218      50%
2004                 4,074         3,958      1,755,536   1,719,415       81          870,791         2.05    10,751       434     220      51%
2005                 4,492         4,372      1,957,689   1,914,377       86        1,066,961         1.97    12,407       438     244      56%
2006                 5,023         4,964      2,310,808   2,260,455       89        1,252,872         1.79    14,077       455     252      55%
TOTAL               20,077        19,738      8,835,956   8,678,598      387        4,068,698         1.96    10,513       440     206      47%

ACCIDENT BENEFITS

2002                 3,051         3,072        517,206     499,380       64          752,866         2.08    11,764       163     245     151%
2003                 3,438         3,372        605,197     593,154       82          265,957         2.43     3,243       176      79      45%
2004                 4,074         3,958        711,991     697,414       69        1,594,185         1.74    23,104       176     403     229%
2005                 4,492         4,372        790,116     774,039       87        1,170,535         1.99    13,454       177     268     151%
2006                 5,023         4,964        938,162     918,234       89          723,222         1.79     8,126       185     146      79%
TOTAL               20,077        19,738      3,562,672   3,482,222      391        4,506,765         1.98    11,526       176     228     129%

UNDERINSURED MOTORIST

2002                 3,051         3,072        59,668       59,445          1        185,000         0.03   185,000        19       60    311%
2003                 3,438         3,372        68,607       66,930          1          1,608         0.03     1,608        20        0      2%
2004                 4,074         3,958        81,437       79,100          2        773,128         0.05   386,564        20     195     977%
2005                 4,492         4,372        89,907       87,274          1        402,256         0.02   402,256        20       92    461%
2006                 5,023         4,964       106,210      104,004      -                -            -         N/A        21     -         0%
TOTAL               20,077        19,738       405,829      396,754          5      1,361,992         0.03   272,398        20       69    343%




                                                                                                                                                   2BV - 41
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                  MOTORCYCLE
                                                  TERRITORY 14 - NORTHERN VANCOUVER ISLAND

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                   CLAIM                       CLAIM
                                                                                CLAIMS AND    FREQUENCY                         COST
               NUMBER OF       NUMBER OF                                       ADJUSTMENT        PER 100 AVERAGE     AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER         EXPENSES        EARNED COST PER      EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS        INCURRED       VEHICLES    CLAIM    PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   454           440     166,012     162,114       12           750,557         2.73    62,546       368   1,705     463%
2003                   443           454     157,333     160,208       17           212,819         3.74    12,519       353     469     133%
2004                   529           516     187,197     182,975        8             9,158         1.55     1,145       355      18       5%
2005                   595           573     205,058     199,509        7           223,506         1.22    31,929       348     390     112%
2006                   632           636     225,655     226,356        4             1,832         0.63       458       356       3       1%
TOTAL                2,653         2,618     941,255     931,162       48         1,197,872         1.83    24,956       356     457     129%

THIRD PARTY TOTAL

2002                   454           440     190,512     186,514       12           750,557         2.73    62,546       424   1,705     402%
2003                   443           454     180,349     183,341       17           329,633         3.74    19,390       404     726     180%
2004                   529           516     215,578     210,673        8             9,158         1.55     1,145       409      18       4%
2005                   595           573     236,581     230,443        7           223,506         1.22    31,929       402     390      97%
2006                   632           636     259,877     260,458        4             1,832         0.63       458       410       3       1%
TOTAL                2,653         2,618   1,082,897   1,071,430       48         1,314,685         1.83    27,389       409     502     123%

ACCIDENT BENEFITS

2002                   454           440      74,786      71,476          11        67,462          2.50     6,133       162     153      94%
2003                   443           454      70,711      72,156          16       102,077          3.52     6,380       159     225     141%
2004                   529           516      84,309      82,472          11       250,212          2.13    22,747       160     485     303%
2005                   595           573      92,485      90,375          10        53,303          1.75     5,330       158      93      59%
2006                   632           636     101,791     102,253          10       132,996          1.57    13,300       161     209     130%
TOTAL                2,653         2,618     424,082     418,733          58       606,051          2.22    10,449       160     231     145%

UNDERINSURED MOTORIST

2002                   454           440       8,869       8,569          3        105,000          0.68    35,000        19     239     1225%
2003                   443           454       8,750       8,932          2        380,000          0.44   190,000        20     837     4254%
2004                   529           516      10,498      10,233          1        285,000          0.19   285,000        20     553     2785%
2005                   595           573      11,697      11,223      -                -             -         N/A        20     -          0%
2006                   632           636      13,217      13,229      -                -             -         N/A        21     -          0%
TOTAL                2,653         2,618      53,031      52,187          6        770,000          0.23   128,333        20     294     1475%




                                                                                                                                                 2BV - 42
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               ALL TERRAIN
                                                       TERRITORY 01 - LOWER MAINLAND

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                  CLAIM                      CLAIM
                                                                               CLAIMS AND    FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT        PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER        EXPENSES        EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS       INCURRED       VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   435           424      28,949      28,097      -               -             -       N/A         66     -         0%
2003                   543           518      31,829      31,690      -               -             -       N/A         61     -         0%
2004                   756           655      32,310      31,714          2             68         0.31       34        48         0     0%
2005                   778           753      30,481      29,954          6         3,709          0.80     618         40         5    12%
2006                   749           753      28,530      28,649          1           -            0.13     -           38     -         0%
TOTAL                3,261         3,103     152,099     150,103          9         3,777          0.29     420         48         1     3%

THIRD PARTY TOTAL

2002                   435           424      43,753      42,658      -               -             -       N/A        101     -         0%
2003                   543           518      52,288      51,795      -               -             -       N/A        100     -         0%
2004                   756           655      53,961      52,835          2             68         0.31       34        81         0     0%
2005                   778           753      47,921      46,874          6         3,709          0.80     618         62         5     8%
2006                   749           753      48,377      47,580          1           -            0.13     -           63     -         0%
TOTAL                3,261         3,103     246,300     241,742          9         3,777          0.29     420         78         1     2%

ACCIDENT BENEFITS

2002                   435           424      21,154      19,080      -               -             -       N/A         45     -         0%
2003                   543           518      26,841      25,602      -               -             -       N/A         49     -         0%
2004                   756           655      26,966      26,617      -               -             -       N/A         41     -         0%
2005                   778           753      25,411      24,963      -               -             -       N/A         33     -         0%
2006                   749           753      23,745      23,838      -               -             -       N/A         32     -         0%
TOTAL                3,261         3,103     124,117     120,101      -               -             -       N/A         39     -         0%

UNDERINSURED MOTORIST

2002                   435           424       6,597       6,350      -               -             -       N/A         15     -         0%
2003                   543           518       7,479       7,369      -               -             -       N/A         14     -         0%
2004                   756           655       7,215       7,275      -               -             -       N/A         11     -         0%
2005                   778           753       6,609       6,489      -               -             -       N/A          9     -         0%
2006                   749           753       6,235       6,248      -               -             -       N/A          8     -         0%
TOTAL                3,261         3,103      34,135      33,731      -               -             -       N/A         11     -         0%




                                                                                                                                               2BV - 43
                                                                              EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                          ALL TERRAIN
                                                           TERRITORY 02 - MAPLE RIDGE/PITT MEADOWS

                                                                 PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                       CLAIM                      CLAIM
                                                                                     CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                            ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED       WRITTEN            EARNED   NUMBER      EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES     PREMIUMS          PREMIUMS OF CLAIMS     INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2003                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2004                       1             0         9                     4    -             -           -        N/A          9     -         0%
2005                       3             2        43                    30    -             -           -        N/A         16     -         0%
2006                       5             3        54                    35    -             -           -        N/A         10     -         0%
TOTAL                      9             6       106                    69    -             -           -        N/A         12     -         0%

THIRD PARTY TOTAL

2002                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2003                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2004                       1             0        31                 13       -             -           -        N/A         31     -         0%
2005                       3             2        79                 61       -             -           -        N/A         32     -         0%
2006                       5             3       122                 78       -             -           -        N/A         22     -         0%
TOTAL                      9             6       232                152       -             -           -        N/A         26     -         0%

ACCIDENT BENEFITS

2002                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2003                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2004                       1             0             8                 3    -             -           -        N/A          8     -         0%
2005                       3             2            32                23    -             -           -        N/A         12     -         0%
2006                       5             3            43                28    -             -           -        N/A          8     -         0%
TOTAL                      9             6            83                54    -             -           -        N/A          9     -         0%

UNDERINSURED MOTORIST

2002                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2003                   -             -            -                 -         -             -           N/A      N/A        N/A     N/A       N/A
2004                       1             0            1                 0     -             -           -        N/A          1     -         0%
2005                       3             2            4                 3     -             -           -        N/A          2     -         0%
2006                       5             3            4                 3     -             -           -        N/A          1     -         0%
TOTAL                      9             6            9                 6     -             -           -        N/A          1     -         0%




                                                                                                                                                    2BV - 44
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                    ALL TERRAIN
                                                      TERRITORY 03 - SQUAMISH WHISTLER AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                   CLAIM                      CLAIM
                                                                                 CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN        EARNED   NUMBER        EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS      PREMIUMS OF CLAIMS       INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                    62           64       4,008          4,165      -              -             -       N/A         65     -         0%
2003                    12           11         675            779      -              -             -       N/A         73     -         0%
2004                    21           20       1,508          1,223          1          368          4.93     368         60         18   30%
2005                    75           69       3,894          4,018      -              -             -       N/A         58     -         0%
2006                    72           76       4,038          4,007      -              -             -       N/A         53     -         0%
TOTAL                  243          239      14,123         14,191          1          368          0.42     368         59         2     3%

THIRD PARTY TOTAL

2002                    62           64       9,347          9,818      -              -             -       N/A        153     -         0%
2003                    12           11       1,896          1,686      -              -             -       N/A        158     -         0%
2004                    21           20       3,454          2,898          1          368          4.93     368        143         18   13%
2005                    75           69       9,623          9,760      -              -             -       N/A        142     -         0%
2006                    72           76       9,582          9,547      -              -             -       N/A        126     -         0%
TOTAL                  243          239      33,902         33,710          1          368          0.42     368        141         2     1%

ACCIDENT BENEFITS

2002                    62           64       3,211          3,175      -              -             -       N/A         49     -         0%
2003                    12           11         588            645      -              -             -       N/A         61     -         0%
2004                    21           20       1,277          1,042      -              -             -       N/A         51     -         0%
2005                    75           69       3,322          3,424      -              -             -       N/A         50     -         0%
2006                    72           76       3,299          3,273      -              -             -       N/A         43     -         0%
TOTAL                  243          239      11,697         11,560      -              -             -       N/A         48     -         0%

UNDERINSURED MOTORIST

2002                    62           64         860            892      -              -             -       N/A         14     -         0%
2003                    12           11          92            103      -              -             -       N/A         10     -         0%
2004                    21           20         217            188      -              -             -       N/A          9     -         0%
2005                    75           69         809            825      -              -             -       N/A         12     -         0%
2006                    72           76         900            877      -              -             -       N/A         12     -         0%
TOTAL                  243          239       2,878          2,884      -              -             -       N/A         12     -         0%




                                                                                                                                                2BV - 45
                                                                     EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                 ALL TERRAIN
                                                 TERRITORY 04 - PEMBERTON AREA/HOPE AREA

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                      CLAIM
                                                                            CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                   ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER      EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS     INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                     2            2         22          24       -             -            -       N/A         12     -         0%
2003                     2            2         23          22       -             -            -       N/A         11     -         0%
2004                     3            2         32          25       -             -            -       N/A         11     -         0%
2005                     6            5        149          74       -             -            -       N/A         15     -         0%
2006                     3            5         24         122       -             -            -       N/A         22     -         0%
TOTAL                   16           17        250         267       -             -            -       N/A         16     -         0%

THIRD PARTY TOTAL

2002                     2            2         27          29       -             -            -       N/A         14     -         0%
2003                     2            2         32          27       -             -            -       N/A         14     -         0%
2004                     3            2         44          35       -             -            -       N/A         15     -         0%
2005                     6            5        289         141       -             -            -       N/A         28     -         0%
2006                     3            5         74         244       -             -            -       N/A         45     -         0%
TOTAL                   16           17        466         476       -             -            -       N/A         28     -         0%

ACCIDENT BENEFITS

2002                     2            2         19          15       -             -            -       N/A          8     -         0%
2003                     2            2         20          19       -             -            -       N/A         10     -         0%
2004                     3            2         26          22       -             -            -       N/A         10     -         0%
2005                     6            5        126          62       -             -            -       N/A         12     -         0%
2006                     3            5         21         104       -             -            -       N/A         19     -         0%
TOTAL                   16           17        212         221       -             -            -       N/A         13     -         0%

UNDERINSURED MOTORIST

2002                     2            2          2           2       -             -            -       N/A          1     -         0%
2003                     2            2          2           2       -             -            -       N/A          1     -         0%
2004                     3            2          3           2       -             -            -       N/A          1     -         0%
2005                     6            5         14           6       -             -            -       N/A          1     -         0%
2006                     3            5          3          12       -             -            -       N/A          2     -         0%
TOTAL                   16           17         24          25       -             -            -       N/A          1     -         0%




                                                                                                                                           2BV - 46
                                                                     EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               ALL TERRAIN
                                                       TERRITORY 05 - FRASER VALLEY

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                      CLAIM
                                                                            CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                   ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER      EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS     INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                    10            9         668        652       -             -            -       N/A         72     -         0%
2003                     9            9         412        409       -             -            -       N/A         47     -         0%
2004                    22           20         549        550       -             -            -       N/A         28     -         0%
2005                    23           22         541        537       -             -            -       N/A         24     -         0%
2006                    27           26       1,157      1,103       -             -            -       N/A         43     -         0%
TOTAL                   92           86       3,327      3,252       -             -            -       N/A         38     -         0%

THIRD PARTY TOTAL

2002                    10            9       1,110      1,095       -             -            -       N/A        120     -         0%
2003                     9            9         778        767       -             -            -       N/A         88     -         0%
2004                    22           20       1,082      1,049       -             -            -       N/A         53     -         0%
2005                    23           22       1,112      1,098       -             -            -       N/A         49     -         0%
2006                    27           26       2,015      1,911       -             -            -       N/A         74     -         0%
TOTAL                   92           86       6,097      5,921       -             -            -       N/A         69     -         0%

ACCIDENT BENEFITS

2002                    10            9         533        508       -             -            -       N/A         56     -         0%
2003                     9            9         356        346       -             -            -       N/A         40     -         0%
2004                    22           20         449        454       -             -            -       N/A         23     -         0%
2005                    23           22         437        436       -             -            -       N/A         20     -         0%
2006                    27           26         992        943       -             -            -       N/A         36     -         0%
TOTAL                   92           86       2,767      2,688       -             -            -       N/A         31     -         0%

UNDERINSURED MOTORIST

2002                    10            9        159         156       -             -            -       N/A         17     -         0%
2003                     9            9         92          91       -             -            -       N/A         10     -         0%
2004                    22           20         89          96       -             -            -       N/A          5     -         0%
2005                    23           22         84          84       -             -            -       N/A          4     -         0%
2006                    27           26        225         215       -             -            -       N/A          8     -         0%
TOTAL                   92           86        649         643       -             -            -       N/A          8     -         0%




                                                                                                                                           2BV - 47
                                                                          EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                      ALL TERRAIN
                                                       TERRITORY 06 - THOMPSON OKANAGAN AREA

                                                             PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                     CLAIM                      CLAIM
                                                                                   CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                          ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN         EARNED   NUMBER         EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS       PREMIUMS OF CLAIMS        INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   330           312      20,668         20,379       -               -            -        N/A        65     -         0%
2003                   393           384      19,726         19,465       -               -            -        N/A        51     -         0%
2004                   471           447      20,624         20,578       -               -            -        N/A        46     -         0%
2005                   570           525      22,144         21,697           1           394         0.19      394        41          1    2%
2006                   610           603      24,905         24,293           5         6,701         0.83    1,340        40         11   28%
TOTAL                2,375         2,271     108,067        106,412           6         7,095         0.26    1,183        47          3    7%

THIRD PARTY TOTAL

2002                   330           312      29,608         28,990       -               -            -        N/A        93     -         0%
2003                   393           384      29,893         29,530       -               -            -        N/A        77     -         0%
2004                   471           447      31,394         31,234       -               -            -        N/A        70     -         0%
2005                   570           525      33,244         32,545           1           394         0.19      394        62          1    1%
2006                   610           603      36,603         35,934           5         6,701         0.83    1,340        60         11   19%
TOTAL                2,375         2,271     160,742        158,232           6         7,095         0.26    1,183        70          3    4%

ACCIDENT BENEFITS

2002                   330           312      14,516         14,185       -               -            -       N/A         45     -         0%
2003                   393           384      14,736         14,511       -               -            -       N/A         38     -         0%
2004                   471           447      15,260         15,219       -               -            -       N/A         34     -         0%
2005                   570           525      16,501         16,139       -               -            -       N/A         31     -         0%
2006                   610           603      18,638         18,249       -               -            -       N/A         30     -         0%
TOTAL                2,375         2,271      79,651         78,303       -               -            -       N/A         34     -         0%

UNDERINSURED MOTORIST

2002                   330           312       4,893          4,842       -               -            -       N/A         16     -         0%
2003                   393           384       4,537          4,530       -               -            -       N/A         12     -         0%
2004                   471           447       4,896          4,876       -               -            -       N/A         11     -         0%
2005                   570           525       5,045          5,002       -               -            -       N/A         10     -         0%
2006                   610           603       5,602          5,521       -               -            -       N/A          9     -         0%
TOTAL                2,375         2,271      24,973         24,770       -               -            -       N/A         11     -         0%




                                                                                                                                                  2BV - 48
                                                                     EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               ALL TERRAIN
                                                         TERRITORY 07 - KOOTENAYS

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                CLAIM                      CLAIM
                                                                              CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                     ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER        EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS       INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   142          153       8,054      8,063           1         1,873         0.65    1,873        53         12   23%
2003                   171          166       9,670      9,443       -               -            -        N/A        57     -         0%
2004                   189          182       7,782      8,748       -               -            -        N/A        48     -         0%
2005                   221          206       8,943      8,841       -               -            -        N/A        43     -         0%
2006                   216          203       8,252      7,782       -               -            -        N/A        38     -         0%
TOTAL                  939          910      42,701     42,877           1         1,873         0.11    1,873        47         2     4%

THIRD PARTY TOTAL

2002                   142          153      10,058     10,085           1         1,873         0.65    1,873        66         12   19%
2003                   171          166      12,654     12,182       -               -            -        N/A        73     -         0%
2004                   189          182      10,333     11,479       -               -            -        N/A        63     -         0%
2005                   221          206      11,881     11,731       -               -            -        N/A        57     -         0%
2006                   216          203      11,078     10,392       -               -            -        N/A        51     -         0%
TOTAL                  939          910      56,004     55,869           1         1,873         0.11    1,873        61         2     3%

ACCIDENT BENEFITS

2002                   142          153       6,377      6,110       -               -            -       N/A         40     -         0%
2003                   171          166       8,216      7,958       -               -            -       N/A         48     -         0%
2004                   189          182       6,480      7,298       -               -            -       N/A         40     -         0%
2005                   221          206       7,486      7,396       -               -            -       N/A         36     -         0%
2006                   216          203       7,068      6,652       -               -            -       N/A         33     -         0%
TOTAL                  939          910      35,627     35,415       -               -            -       N/A         39     -         0%

UNDERINSURED MOTORIST

2002                   142          153       1,890      1,908       -               -            -       N/A         12     -         0%
2003                   171          166       2,236      2,189       -               -            -       N/A         13     -         0%
2004                   189          182       1,975      2,088       -               -            -       N/A         11     -         0%
2005                   221          206       2,099      2,103       -               -            -       N/A         10     -         0%
2006                   216          203       2,005      1,927       -               -            -       N/A         10     -         0%
TOTAL                  939          910      10,205     10,216       -               -            -       N/A         11     -         0%




                                                                                                                                             2BV - 49
                                                                     EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               ALL TERRAIN
                                                        TERRITORY 08 - CARIBOO AREA

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                      CLAIM
                                                                            CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                   ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER      EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS     INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                    21           17       1,829      1,239       -             -            -       N/A         71     -         0%
2003                    33           29       2,084      2,055       -             -            -       N/A         70     -         0%
2004                    36           35       2,098      2,138       -             -            -       N/A         60     -         0%
2005                    57           38       1,722      1,962       -             -            -       N/A         52     -         0%
2006                    55           58         769      1,418       -             -            -       N/A         25     -         0%
TOTAL                  202          178       8,502      8,813       -             -            -       N/A         50     -         0%

THIRD PARTY TOTAL

2002                    21           17       2,615      1,515       -             -            -       N/A         87     -         0%
2003                    33           29       2,912      2,948       -             -            -       N/A        101     -         0%
2004                    36           35       3,029      2,990       -             -            -       N/A         85     -         0%
2005                    57           38       2,618      2,894       -             -            -       N/A         76     -         0%
2006                    55           58       1,172      2,187       -             -            -       N/A         38     -         0%
TOTAL                  202          178      12,346     12,533       -             -            -       N/A         71     -         0%

ACCIDENT BENEFITS

2002                    21           17       1,517        858       -             -            -       N/A         49     -         0%
2003                    33           29       1,796      1,740       -             -            -       N/A         59     -         0%
2004                    36           35       1,800      1,837       -             -            -       N/A         52     -         0%
2005                    57           38       1,461      1,682       -             -            -       N/A         44     -         0%
2006                    55           58         637      1,194       -             -            -       N/A         21     -         0%
TOTAL                  202          178       7,211      7,310       -             -            -       N/A         41     -         0%

UNDERINSURED MOTORIST

2002                    21           17        205         135       -             -            -       N/A          8     -         0%
2003                    33           29        246         241       -             -            -       N/A          8     -         0%
2004                    36           35        231         242       -             -            -       N/A          7     -         0%
2005                    57           38        198         222       -             -            -       N/A          6     -         0%
2006                    55           58         90         166       -             -            -       N/A          3     -         0%
TOTAL                  202          178        970       1,006       -             -            -       N/A          6     -         0%




                                                                                                                                           2BV - 50
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                 ALL TERRAIN
                                                      TERRITORY 09 - PRINCE GEORGE AREA

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                 CLAIM                      CLAIM
                                                                               CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN      EARNED   NUMBER        EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS    PREMIUMS OF CLAIMS       INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                    33           41       1,351        1,759      -               -            -        N/A        43     -          0%
2003                    39           40       1,327        1,558      -               -            -        N/A        38     -          0%
2004                    63           47       1,431        1,383      -               -            -        N/A        30     -          0%
2005                    77           61       1,211        1,315          2         1,959         3.26      979        21         32   149%
2006                    86           83       1,550        1,297          2         4,934         2.42    2,467        16         60   380%
TOTAL                  298          272       6,870        7,311          4         6,893         1.47    1,723        27         25    94%

THIRD PARTY TOTAL

2002                    33           41       2,171        2,452      -               -            -        N/A        61     -          0%
2003                    39           40       2,922        2,635      -               -            -        N/A        65     -          0%
2004                    63           47       2,896        2,857      -               -            -        N/A        61     -          0%
2005                    77           61       2,459        2,769          2         1,959         3.26      979        45         32    71%
2006                    86           83       2,917        2,628          2         4,934         2.42    2,467        32         60   188%
TOTAL                  298          272      13,365       13,341          4         6,893         1.47    1,723        49         25    52%

ACCIDENT BENEFITS

2002                    33           41       1,007        1,061      -               -            -       N/A         26     -         0%
2003                    39           40       1,062        1,189      -               -            -       N/A         29     -         0%
2004                    63           47       1,144        1,103      -               -            -       N/A         24     -         0%
2005                    77           61         984        1,047      -               -            -       N/A         17     -         0%
2006                    86           83       1,236        1,057      -               -            -       N/A         13     -         0%
TOTAL                  298          272       5,433        5,458      -               -            -       N/A         20     -         0%

UNDERINSURED MOTORIST

2002                    33           41        168          202       -               -            -       N/A          5     -         0%
2003                    39           40        177          193       -               -            -       N/A          5     -         0%
2004                    63           47        179          180       -               -            -       N/A          4     -         0%
2005                    77           61        165          173       -               -            -       N/A          3     -         0%
2006                    86           83        208          175       -               -            -       N/A          2     -         0%
TOTAL                  298          272        897          924       -               -            -       N/A          3     -         0%




                                                                                                                                              2BV - 51
                                                                     EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                              ALL TERRAIN
                                                      TERRITORY 10 - NORTHERN COAST

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                      CLAIM
                                                                            CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                   ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER      EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS     INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                     3            3        159         148       -             -            -       N/A         44     -         0%
2003                     2            2         23          79       -             -            -       N/A         53     -         0%
2004                    10            6         68          49       -             -            -       N/A          8     -         0%
2005                    29           18        182         119       -             -            -       N/A          7     -         0%
2006                    31           29        330         257       -             -            -       N/A          9     -         0%
TOTAL                   74           57        762         653       -             -            -       N/A         11     -         0%

THIRD PARTY TOTAL

2002                     3            3         252        219       -             -            -       N/A         64     -         0%
2003                     2            2          40        125       -             -            -       N/A         83     -         0%
2004                    10            6         152         97       -             -            -       N/A         15     -         0%
2005                    29           18         363        270       -             -            -       N/A         15     -         0%
2006                    31           29         547        457       -             -            -       N/A         16     -         0%
TOTAL                   74           57       1,354      1,168       -             -            -       N/A         20     -         0%

ACCIDENT BENEFITS

2002                     3            3        142         125       -             -            -       N/A         37     -         0%
2003                     2            2         22          71       -             -            -       N/A         47     -         0%
2004                    10            6         76          53       -             -            -       N/A          9     -         0%
2005                    29           18        182         125       -             -            -       N/A          7     -         0%
2006                    31           29        314         251       -             -            -       N/A          9     -         0%
TOTAL                   74           57        736         626       -             -            -       N/A         11     -         0%

UNDERINSURED MOTORIST

2002                     3            3         25         23        -             -            -       N/A          7     -         0%
2003                     2            2          3         11        -             -            -       N/A          7     -         0%
2004                    10            6         11          7        -             -            -       N/A          1     -         0%
2005                    29           18         30         19        -             -            -       N/A          1     -         0%
2006                    31           29         46         39        -             -            -       N/A          1     -         0%
TOTAL                   74           57        115         99        -             -            -       N/A          2     -         0%




                                                                                                                                           2BV - 52
                                                                     EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                               ALL TERRAIN
                                                      TERRITORY 11 - PEACE RIVER AREA

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                      CLAIM
                                                                            CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                   ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER      EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS     INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                     9            7       1,066      1,019       -             -            -       N/A        149     -         0%
2003                    10           12       1,028      1,281       -             -            -       N/A        106     -         0%
2004                    22           16         771        670       -             -            -       N/A         42     -         0%
2005                    56           34       1,289        965       -             -            -       N/A         28     -         0%
2006                    51           51       1,104      1,121       -             -            -       N/A         22     -         0%
TOTAL                  148          120       5,258      5,056       -             -            -       N/A         42     -         0%

THIRD PARTY TOTAL

2002                     9            7       1,306      1,163       -             -            -       N/A        170     -         0%
2003                    10           12       1,329      1,628       -             -            -       N/A        135     -         0%
2004                    22           16       1,163        925       -             -            -       N/A         58     -         0%
2005                    56           34       1,980      1,506       -             -            -       N/A         44     -         0%
2006                    51           51       1,388      1,698       -             -            -       N/A         33     -         0%
TOTAL                  148          120       7,166      6,920       -             -            -       N/A         58     -         0%

ACCIDENT BENEFITS

2002                     9            7         906        798       -             -            -       N/A        116     -         0%
2003                    10           12         898      1,105       -             -            -       N/A         92     -         0%
2004                    22           16         675        585       -             -            -       N/A         37     -         0%
2005                    56           34       1,140        852       -             -            -       N/A         25     -         0%
2006                    51           51         969        991       -             -            -       N/A         19     -         0%
TOTAL                  148          120       4,588      4,331       -             -            -       N/A         36     -         0%

UNDERINSURED MOTORIST

2002                     9            7        117         108       -             -            -       N/A         16     -         0%
2003                    10           12        114         140       -             -            -       N/A         12     -         0%
2004                    22           16         89          75       -             -            -       N/A          5     -         0%
2005                    56           34        158         116       -             -            -       N/A          3     -         0%
2006                    51           51        131         135       -             -            -       N/A          3     -         0%
TOTAL                  148          120        609         575       -             -            -       N/A          5     -         0%




                                                                                                                                           2BV - 53
                                                                      EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                ALL TERRAIN
                             TERRITORY 12 - SOUTHERN VANCOUVER ISLAND AND ALL OTHER ISLANDS OFF THE WEST COAST

                                                         PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                 CLAIM                      CLAIM
                                                                               CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                      ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER         EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS        INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                    80           75       4,957       4,633       -               -            -       N/A         62     -         0%
2003                    94           88       4,920       5,050       -               -            -       N/A         57     -         0%
2004                   177          144       6,348       5,757       -               -            -       N/A         40     -         0%
2005                   415          301      14,143       9,913           2         1,365         0.66     682         33         5    14%
2006                   409          386      15,565      13,352       -               -            -       N/A         35     -         0%
TOTAL                1,176          994      45,933      38,705           2         1,365         0.20     682         39         1     4%

THIRD PARTY TOTAL

2002                    80           75       6,204       5,868       -               -            -       N/A         79     -         0%
2003                    94           88       6,572       6,549       -               -            -       N/A         74     -         0%
2004                   177          144       8,411       7,748       -               -            -       N/A         54     -         0%
2005                   415          301      25,980      16,700           2         1,365         0.66     682         55         5     8%
2006                   409          386      26,415      22,648       -               -            -       N/A         59     -         0%
TOTAL                1,176          994      73,582      59,514           2         1,365         0.20     682         60         1     2%

ACCIDENT BENEFITS

2002                    80           75       3,470       3,012       -               -            -       N/A         40     -         0%
2003                    94           88       3,682       3,681       -               -            -       N/A         42     -         0%
2004                   177          144       4,694       4,275       -               -            -       N/A         30     -         0%
2005                   415          301      10,560       7,415       -               -            -       N/A         25     -         0%
2006                   409          386      11,529       9,918       -               -            -       N/A         26     -         0%
TOTAL                1,176          994      33,935      28,301       -               -            -       N/A         28     -         0%

UNDERINSURED MOTORIST

2002                    80           75       1,320       1,193       -               -            -       N/A         16     -         0%
2003                    94           88       1,453       1,434       -               -            -       N/A         16     -         0%
2004                   177          144       1,753       1,641       -               -            -       N/A         11     -         0%
2005                   415          301       3,957       2,730       -               -            -       N/A          9     -         0%
2006                   409          386       4,249       3,659       -               -            -       N/A          9     -         0%
TOTAL                1,176          994      12,732      10,656       -               -            -       N/A         11     -         0%




                                                                                                                                              2BV - 54
                                                                        EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                    ALL TERRAIN
                                           TERRITORY 13 - MIDDLE VANCOUVER ISLAND/SUNSHINE COAST AREA

                                                           PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                                   CLAIM                      CLAIM
                                                                                 CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                        ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED       WRITTEN      EARNED   NUMBER        EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES     PREMIUMS    PREMIUMS OF CLAIMS       INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                   259           243        13,949      13,843      -               -            -        N/A        57     -         0%
2003                   274           270        12,514      13,351      -               -            -        N/A        49     -         0%
2004                   236           273        11,459      12,882      -               -            -        N/A        47     -         0%
2005                   389           311        14,261      12,831          1         1,290         0.32    1,290        41         4    10%
2006                   411           391        16,180      14,971      -               -            -        N/A        38     -         0%
TOTAL                1,568         1,488        68,363      67,878          1         1,290         0.07    1,290        46         1     2%

THIRD PARTY TOTAL

2002                   259           243        21,499      21,485      -               -            -        N/A        88     -         0%
2003                   274           270        20,283      21,395      -               -            -        N/A        79     -         0%
2004                   236           273        20,951      21,038      -               -            -        N/A        77     -         0%
2005                   389           311        27,657      24,882          1         1,290         0.32    1,290        80         4     5%
2006                   411           391        25,903      25,832      -               -            -        N/A        66     -         0%
TOTAL                1,568         1,488       116,293     114,632          1         1,290         0.07    1,290        77         1     1%

ACCIDENT BENEFITS

2002                   259           243        10,345       9,101      -               -            -       N/A         37     -         0%
2003                   274           270        11,001      10,577      -               -            -       N/A         39     -         0%
2004                   236           273         9,977      11,248      -               -            -       N/A         41     -         0%
2005                   389           311        12,452      11,221      -               -            -       N/A         36     -         0%
2006                   411           391        14,394      13,160      -               -            -       N/A         34     -         0%
TOTAL                1,568         1,488        58,169      55,307      -               -            -       N/A         37     -         0%

UNDERINSURED MOTORIST

2002                   259           243         3,496       3,362      -               -            -       N/A         14     -         0%
2003                   274           270         3,515       3,479      -               -            -       N/A         13     -         0%
2004                   236           273         3,152       3,588      -               -            -       N/A         13     -         0%
2005                   389           311         3,875       3,536      -               -            -       N/A         11     -         0%
2006                   411           391         4,428       4,022      -               -            -       N/A         10     -         0%
TOTAL                1,568         1,488        18,466      17,987      -               -            -       N/A         12     -         0%




                                                                                                                                                2BV - 55
                                                                     EXHIBIT V - EXPERIENCE BY MAJOR LINES OF BUSINESS AND TERRITORY

                                                                 ALL TERRAIN
                                                 TERRITORY 14 - NORTHERN VANCOUVER ISLAND

                                                        PROVINCE OF BRITISH COLUMBIA
Data as of December 31, 2006
                                                                                              CLAIM                      CLAIM
                                                                            CLAIMS AND   FREQUENCY                        COST
               NUMBER OF       NUMBER OF                                   ADJUSTMENT       PER 100 AVERAGE    AVERAGE     PER RECORDED
COVERAGE         WRITTEN         EARNED     WRITTEN     EARNED   NUMBER      EXPENSES       EARNED COST PER     EARNED EARNED       LOSS
AND YEAR        VEHICLES        VEHICLES   PREMIUMS   PREMIUMS OF CLAIMS     INCURRED      VEHICLES    CLAIM   PREMIUM VEHICLE     RATIO

THIRD PARTY BASIC

2002                     2            1         91          80       -             -            -       N/A         73     -         0%
2003                     2            3         92         101       -             -            -       N/A         36     -         0%
2004                    13           10        185         156       -             -            -       N/A         16     -         0%
2005                    16           15        231         214       -             -            -       N/A         14     -         0%
2006                    15           16        220         221       -             -            -       N/A         14     -         0%
TOTAL                   49           45        819         772       -             -            -       N/A         17     -         0%

THIRD PARTY TOTAL

2002                     2            1          95         83       -             -            -       N/A         77     -         0%
2003                     2            3         104        112       -             -            -       N/A         40     -         0%
2004                    13           10         273        219       -             -            -       N/A         23     -         0%
2005                    16           15         340        323       -             -            -       N/A         21     -         0%
2006                    15           16         352        339       -             -            -       N/A         21     -         0%
TOTAL                   49           45       1,164      1,077       -             -            -       N/A         24     -         0%

ACCIDENT BENEFITS

2002                     2            1         73          62       -             -            -       N/A         57     -         0%
2003                     2            3         88          94       -             -            -       N/A         34     -         0%
2004                    13           10        177         150       -             -            -       N/A         16     -         0%
2005                    16           15        220         204       -             -            -       N/A         13     -         0%
2006                    15           16        201         205       -             -            -       N/A         13     -         0%
TOTAL                   49           45        759         714       -             -            -       N/A         16     -         0%

UNDERINSURED MOTORIST

2002                     2            1         20          19       -             -            -       N/A         17     -         0%
2003                     2            3         23          23       -             -            -       N/A          8     -         0%
2004                    13           10         34          30       -             -            -       N/A          3     -         0%
2005                    16           15         39          37       -             -            -       N/A          2     -         0%
2006                    15           16         36          37       -             -            -       N/A          2     -         0%
TOTAL                   49           45        152         147       -             -            -       N/A          3     -         0%




                                                                                                                                           2BV - 56
                                    CHAPTER 7.4

                                            FINANCE




Insurance Corporation of British Columbia
March 16, 2007
                                           ICBC March 16, 2007 Filing with the BC Utilities Commission




                                           Table of Contents
A Finance Division Overview.............................................................................................7.4-1

B Finance Division Operating Expenses..........................................................................7.4-2

C Divisional Operating Expenses by Business Area ......................................................7.4-4
     C.1 Finance and Accounting Business Area ...................................................................7.4-5
         C.1.1 Corporate Audit and Risk Management Services Department .....................7.4-6
         C.1.2 Corporate Controller Department..................................................................7.4-6
         C.1.3 Corporate Actuarial Department ...................................................................7.4-6
         C.1.4 Investments Department ...............................................................................7.4-7
         C.1.5 Finance and Accounting Business Area Operating Expenses......................7.4-7
     C.2 Collections Business Area ........................................................................................7.4-9
     C.3 Supply Management and Corporate Services Business Area ................................7.4-10
         C.3.1 Supply Management Department ...............................................................7.4-10
         C.3.2 Corporate Services Department..................................................................7.4-10
         C.3.3 Supply Management and Corporate Services Business Area Operating
                 Expenses....................................................................................................7.4-11

D Conclusion.....................................................................................................................7.4-12

Appendix 7.4 A – Premium Tax Exemption ....................................................................... 7.4-A

Appendix 7.4 B – Capitalization Accounting Policy ......................................................... 7.4-B




Insurance Corporation of British Columbia                                                                                         7.4-i
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission



                                              Table of Figures
Figure 7.4.1 - Finance Division Operating Expenses and FTEs .............................................7.4-2
Figure 7.4.2 - Departments Mapped to Business Areas .........................................................7.4-4
Figure 7.4.3 - Finance and Accounting Business Area Operating Expenses and FTEs.........7.4-8
Figure 7.4.4 - Collections Business Area Operating Expenses and FTEs..............................7.4-9
Figure 7.4.5 - Supply Management and Corporate Services Business Area Operating Expenses
    and FTEs........................................................................................................................7.4-11




Insurance Corporation of British Columbia                                                                                            7.4-ii
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A       FINANCE DIVISION OVERVIEW
1.      The Finance Division provides ICBC with financial accounting and actuarial services,
collection services, project management services, corporate services, supply management
services, audit and risk management services, and the appropriate related corporate
governance. In addition, the Finance Division manages ICBC’s investment portfolio of over
$7.7 billion to generate investment income that is used to reduce policyholder premiums.

2.      Effective corporate governance and accountability are important factors in controlling
corporate costs. ICBC’s governance and accountability framework is well defined. ICBC, as a
Crown corporation, operates within a legislative framework that requires planning and
accountability to government and Basic insurance rate regulation by the Commission. The
Finance Division plays the largest role in, and carries the most responsibility for, governmental
and regulatory reporting. Finance is responsible for the preparation and reporting of financial
information and financial management reporting systems that allow ICBC to perform planning
and budgeting and to measure results against plans. The division supports the Management,
Executive, and the Board of Directors of ICBC in assessing financial and business risks, both
when implementing change or maintaining present business practices. Finance works with
internal customers to ensure financial management and system controls are at the appropriate
levels based on the related risks.

3.      The Finance Division is comprised of six departments: Corporate Audit and Risk
Management Services, Corporate Controller, Corporate Actuarial, Investments, Corporate
Services, and Supply Management. These six departments each provide a specific function
within the Finance Division. For the purposes of this Application and to allow for an easier
review of the expenses within Finance, the six departments have been grouped into three
business areas. The business areas are identified as:

        •    Finance and Accounting (Corporate Audit and Risk Management Services,
             Corporate Controller, Corporate Actuarial, and Investments).

        •    Collections (Collection Services – Reporting to the Corporate Controller).

        •    Supply Management and Corporate Services.



Insurance Corporation of British Columbia                                                    7.4-1
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

4.       The operating expenses forecast for and incurred by these business areas are described
in detail in Section C.


B        FINANCE DIVISION OPERATING EXPENSES
5.       Figure 7.4.1 identifies the Finance Division’s operating expenses and FTEs showing the
2005 actual and the 2006 actual expenditures; as compared to 2006 forecast and 2007
forecast.

Figure 7.4.1 - Finance Division Operating Expenses and FTEs

                                                ($ millions)
 Line                               2005        2006            2006        2007
 No.        Description            Actual   Forecast           Actual   Forecast            Reference

     1   Compensation               $26.2      $29.2            $29.2      $30.8
         General Operating
     2   Expenses                    10.8       12.3             10.7       11.1
     3   Subtotal                    37.0       41.5             39.9       41.9
         Licence Plates and
     4   Decals                       3.9        3.4              4.3        3.7
         Corporate
     5   Occupancy Costs             29.3       29.6             28.8       30.5
         Total Operating
     6   Expenses                   $70.2      $74.5            $73.0      $76.1 Chapter 7.1 Figure 7.1.2 Line 3
         Full Time
         Equivalent
     7   Averages (FTEs)              384       404              400         414



6.       Figure 7.4.1 also shows the significant cost categories relevant to the Finance Division.
The 2007 forecast shows licence plates, decals, and corporate occupancy costs comprise 45%
of the division’s total operating expenses. These costs are discussed in Section C.3. The other
significant cost component for the Finance Division is compensation representing approximately
74% of the division’s operating expenses for the 2007 forecast, exclusive of licence plates,
decals, and corporate occupancy costs. High level descriptions of the changes from 2005
actual to 2007 forecast are set out below. Further details of those changes are found in the
business area discussion later in this Chapter.

7.       The Finance Division, as a significant service provider to the organization, incurs
compensation costs for clerical and professional staff and related operating expenses to provide


Insurance Corporation of British Columbia                                                                      7.4-2
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

the required services. The $4.6 million increase between the 2005 actual and the 2007 forecast
compensation is related to the need for additional employees and the general compensation
increases discussed in Chapter 7.1.

8.      During 2005 ICBC experienced a very competitive labour market and had difficulty
recruiting and retaining staffing levels in the finance, actuarial, and accounting areas. As a
result, Finance was unable to fill positions and came in below planned staffing levels for the
year by an average of 10 personnel.

9.      Through the later part of 2005 and in 2006, the Finance Division was successful in
recruiting and retaining staff to fill those positions as well as an additional 10 positions that were
required due to the increased workload demands on the division in 2006. Of the $4.6 million
compensation increase in Figure 7.4.1 2005 actual to 2007 forecast, $3.0 million of the increase
is from 2005 actual to 2006 actual, of which approximately $1.3 million relates to additional
FTEs and the balance of $1.7 million is attributable to increases in compensation levels.

10.     Staffing levels are forecast to increase in 2007, predominantly in the corporate actuarial
and financial accounting and reporting areas where the demand for actuarial and financial
accounting resources has increased significantly in the past few years. Further details are
provided in Section C.1. Corporate Services will also see some minor additions due to the
increased level of planning and management required for corporate facilities.

11.     Additional human resources are required to provide better and more responsive
business reporting and analysis and to meet the needs for increasing detail and segmented
levels of corporate governance and reporting. As the need for better and more predictive
business reporting has developed, the requirement for analytics and analytical tools has
prompted the need for actuaries, analysts, and professional accountants to perform the
necessary work. This work is performed in areas such as corporate actuarial, financial
consulting, financial reporting, corporate audit, and corporate planning and is used throughout
ICBC to support a number of different initiatives such as analysis for bodily injury and material
damage claims costs, regulatory filings to the Commission, and other external reporting.

12.     The following sections provide an introduction to the business areas, brief descriptions of
the functions performed by the various business areas within the Finance Division, and a
discussion of the efforts made to provide increasing levels of service, business analytics, and

Insurance Corporation of British Columbia                                                         7.4-3
March 16, 2007
F
I                                         ICBC March 16,2007 Filing with the BC Utilities Commission

support to ICBC. Operating expenses are presented by business area showing 2005 actual,
2006 forecast, 2006 actual, and 2007 forecast.

C          DIVISIONAL OPERATING EXPENSES BY BUSINESS AREA
13.        In ICBC's August 2005 Application, ICBC provided a summary of the departmental
responsibilities of the six departments within the Finance Division. These departments as shown
in Figure 7.4.2 below have been grouped into business areas in order to better illustrate
operating expenses specific to each area. For internal budgeting and reporting, the organization
of these six departments has not changed from prior periods. Figure 7.4.2 illustrates the
departments within Finance and their associated business areas.

                   -
Figure 7.4.2 Departments Mapped to Business Areas

                                                   Finance Division
                                                   Business Areas

                                                                                                Supply Management
                             Finance &Accounting
                                                                                                & Corporate Services
                                Business Area                              Business Area
                                                                                                   Business Area




    Corporate Audit &
    Risk Management
        Services
                        11             1 1          11   Investments   1                   Management
                                                                                                               Corporate
                                                                                                               Services



                                                                             Collection
                                                                             Services



14.        The Finance Division's operating expenses are classified into four major categories of
costs of which compensation and general expenses are common to all business areas:

      1) Compensation: all compensation-related costs, including benefits.

      2) General Operating Expenses: the costs for equipment and supplies and other expenses
            related to providing the Finance Division services to ICBC.

      3) Licence Plates and Decals: ,this category of cost includes the costs of licence plates and
            registration decals and the costs associated with distribution of licences plates and
            registration decals to the various licensing and broker locations.


Insurance Corporation of British Columbia                                                                              7.4-4
March 16,2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

      4) Corporate Occupancy Costs: the costs related to providing facilities for all ICBC staff for
         all areas of ICBC. Facilities costs are corporate common costs that are centralized for
         efficiency. These costs are exclusive of the compensation costs for administering the
         facilities.

15.      Explanations for each of the cost categories and their relationship to the Finance
Division’s business areas are presented below.

C.1      FINANCE AND ACCOUNTING BUSINESS AREA
16.      The largest group of services provided by the Finance Division are those of accounting
and reporting, planning, actuarial, funds management, audit/risk management, and investment
management.            These areas are linked together to handle the flow of funds, account for
revenues, and costs throughout the organization and provide business reporting, analysis, and
financial governance. The Finance and Accounting business area is primarily responsible for
financial oversight and handles other functions such as actuarial projections (see C.1.3 for more
detail), the management of investment assets, and the accounting for and reporting of ICBC’s
financial position, financial consulting, and planning and management oversight. These areas
are the most affected by the needs for more responsive, sophisticated, and timely reporting and
analytics.

17.      The Finance and Accounting business area has seen an increase in the demands for
actuarial and accounting resources in the past few years and this is expected to continue into
2007. ICBC went through a long period in which premium rates were frozen and therefore
detailed rate reviews and analyses were not performed in the past. The current regulatory
structure requires ICBC to determine appropriate capital levels or maintain separate reserves
and account for the Basic and Optional insurance lines of business differently than prior to
Special Direction IC2. With the advent of the Commission’s regulation of Basic insurance rates,
there has been a need to increase human resources within the Corporate Actuarial Department
and the Corporate Controller Department. Furthermore, with the significant deterioration in
bodily injury claims costs in 2005, ICBC’s management has focused considerable attention in
this area. The Corporate Controller and Actuarial departments have developed new business
tools, metrics, and reports to analyze and monitor changes in claims costs and to assist in
management decision making.



Insurance Corporation of British Columbia                                                       7.4-5
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C.1.1 CORPORATE AUDIT AND RISK MANAGEMENT SERVICES DEPARTMENT

18.      The mandate of Corporate Audit and Risk Management Services is to provide
independent, objective assurance to the Audit Committee of the Board of Directors that ICBC
has a disciplined approach to evaluate and improve the effectiveness of audit and control,
governance processes, and risk management at ICBC. The Risk Management Department
provides a quarterly update to the Audit Committee on the key internal and external risks facing
ICBC, and managements’ strategies to address the risks.            The Corporate Audit Services
Department provides assurance that ICBC has effective controls, appropriate to the risk, in
place.

C.1.2 CORPORATE CONTROLLER DEPARTMENT

19.      The Corporate Controller Department provides key support services to ICBC in the
following areas: Financial Accounting and Reporting, Funds Management, Corporate Planning
and Analysis, Consulting and Financial Business Services, and Regulatory Financial Reporting
and Analysis.      This area has seen an increase in demands for services.         The increase in
professional staff is necessary to support both internal and external reporting requirements, as
well as providing financial analysis for other divisions. Reporting requirements cover such areas
as regulatory filings to the Commission, specific business area initiatives such as the bodily
injury initiatives in the Operations Division, monthly corporate reporting, and financial modeling.

C.1.3 CORPORATE ACTUARIAL DEPARTMENT

20.      Of all the areas in the Finance Division, the Corporate Actuarial Department has seen
the greatest need for increased resources, which has largely stemmed from the recent addition
of the Commission’s regulation of ICBC’s Basic insurance rates, with the coincident requirement
to analyze Basic and Optional data separately. The Corporate Actuarial Department has a
major role in ICBC revenue requirement applications and is also expending considerable time
and effort in ICBC’s rate design process, and expects this level of work to continue into the
foreseeable future. In addition to regulatory oversight, the department requires resources for
the increasing sophistication of claims analysis undertaken, as well as increased governance
due to the recent changes to certain accounting guidelines related to insurance liabilities. The
Corporate Actuarial Department has also seen an increased demand for actuarial analysis and
continues to be involved in operational and insurance business needs.



Insurance Corporation of British Columbia                                                       7.4-6
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C.1.4 INVESTMENTS DEPARTMENT

21.     The Investments Department manages ICBC’s investment portfolio, which has an
approximate value of $7.7 billion (December 31, 2006).           The Investments Department is
responsible for maximizing the return on investment assets within specific risk parameters as
defined within the Statement of Investment Policy and Procedures, which is set by ICBC’s
Board of Directors.

22.     In addition, the Investments Department is accountable for managing the corporate cash
flow, ensuring cash is available to meet obligations as they come due, monitoring cash flow
forecasts, and providing investment management services to the Management and Confidential
Pension Plan.

C.1.5 FINANCE AND ACCOUNTING BUSINESS AREA OPERATING EXPENSES

23.     The following figure shows the compensation and general expenses related to the
Finance and Accounting business area.




Insurance Corporation of British Columbia                                                   7.4-7
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


Figure 7.4.3 - Finance and Accounting Business Area Operating Expenses and FTEs
                                                             ($ millions)
 Line                                        2005           2006             2006          2007
 No.            Description                 Actual      Forecast            Actual     Forecast


      1     Compensation                     $12.2          $13.8            $13.9         $15.2
            General Operating
      2     Expenses                            4.4           5.0              4.4           5.0
            Total Operating
      3     Expenses                         $16.6          $18.8            $18.3         $20.2
            Full Time
            Equivalent
      4     Averages (FTEs)                    161            166             168            177

24.       Of the $3.0 million increase in compensation levels from 2005 actual to 2007 forecast,
approximately $1.3 million is attributable to an additional 16 staff that are required to meet the
increased need for reporting and analyses within this business area including reserving,
ratemaking analysis and financial planning.             The remaining $1.7 million increase in
compensation is attributable primarily to increases in pay levels for bargaining unit employees
due to the settlement of the new Collective Bargaining Agreement and increases in
management compensation.

25.       General operating expenses have remained stable over the period 2005 actual to 2006
actual and have increased by $0.6 million from 2006 actual to 2007 forecast. From the 2005
actual to the 2006 actual, there was no significant change in costs within any specific area. For
the period 2006 actual to 2007 forecast, the increase in costs is driven primarily from the
consolidation of insurance expense (commercial general, facilities, liability, and other insurance)
from other divisions to the Finance Division. This change was made since corporate insurance
is negotiated and purchased within one area in Finance and is not sourced or negotiated in any
other area. An offset to the increase in operating expenses is a change in the method of
accounting for bank charges. In 2007 certain bank charges are to be netted against investment
income, whereas in prior years, they were shown as a separate cost item in the Investments
Department.




Insurance Corporation of British Columbia                                                      7.4-8
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C.2       COLLECTIONS BUSINESS AREA
26.       The Collections business area is responsible for the collection of Driver Penalty Point
premiums and outstanding debts to ICBC. This area is also responsible for the collection of
government fines as part of Non-insurance services ICBC performs for the provincial
government. Through the use of call centre processing and pro-active collection programs, the
Collections area identifies and implements efficient and cost effective recovery programs such
as the timeframes for referral to collection agencies and the timelines for cancellation of
Optional coverages.

Figure 7.4.4 - Collections Business Area Operating Expenses and FTEs
                                                             ($ millions)
 Line                                          2005          2006          2006            2007
 No.              Description                 Actual     Forecast         Actual       Forecast

      1     Compensation                        $4.1          $4.7          $4.5            $4.7
            General Operating
      2     Expenses                             0.5           1.2            0.5            0.6
            Total Operating
      3     Expenses                            $4.6          $5.9          $5.0            $5.3


            Full Time Equivalent
      4     Averages (FTEs)                       70            77            76              78

27.       The Collections business area is comprised of mainly bargaining unit personnel engaged
in collections of outstanding debt and fines. In 2005, this business area had a difficult time both
recruiting and retaining qualified staff and, as such, was operating below planned staffing levels
for the entire year (which were planned for 77 FTEs). This situation was resolved in 2006 when
the appropriate staffing levels were achieved. The remainder of the increase in expenses is
attributable to the increased compensation levels.

28.       The 2007 forecast for operating expenses are slightly higher than 2006 due to
professional service expenses related to bailiff services. Qualified bailiffs are hired to perform
licence plate seizures from individuals with outstanding premium debt to ICBC. As this service
is currently between contracts, the 2007 forecast reflects an annual increase in expenses from a
new contract which will be in place in early 2007.



Insurance Corporation of British Columbia                                                      7.4-9
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

29.     Included in the 2006 Forecast for General Operating Expenses are $0.5 million for
collection fees, which are those fees and commissions paid to external collection agents for
recovery of outstanding debts. The actual fees paid in both 2005 and 2006 as well as the 2007
Forecast are consolidated in Chapter 7.7 Corporate Costs. The 2006 forecast amount in
Figure 7.4.4 has not been adjusted to reflect this consolidation as that amount is consistent with
the information provided in the August 2005 Application.

C.3     SUPPLY MANAGEMENT AND CORPORATE SERVICES BUSINESS
        AREA
30.     This part of the Finance Division is comprised of the Supply Management and Corporate
Services departments. These departments are described below.

C.3.1 SUPPLY MANAGEMENT DEPARTMENT

31.     The Supply Management Department provides internal customers with services in the
following areas: corporate procurement, contract services, and services to supply and distribute
licence plates and decals.          Licence plates and decals supply and distribution include the
ordering, shipping, tracking, reconciliation, and inventory management of these items. It also
supports the network of brokers in providing ICBC customers with the necessary vehicle and
licensing forms relating to insurance and registration.

C.3.2 CORPORATE SERVICES DEPARTMENT

32.     The Corporate Services Department provides a wide variety of support services to
internal ICBC clients. The group is responsible for real estate leasing agreements and building
operations, ensuring a safe and comfortable work environment for ICBC employees and
customers throughout the province. An additional responsibility of Corporate Services is the
oversight of its environmental management program, which ensures ICBC’s buildings and
properties are managed in compliance with all environmental regulations. Corporate Services
also offers document management services such as mail distribution services, as well as, the
design, printing, publishing, and distribution services for all other printed materials. Finally, the
Corporate Services Department is responsible for a project management group which manages
business change initiatives.




Insurance Corporation of British Columbia                                                       7.4-10
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C.3.3 SUPPLY MANAGEMENT AND CORPORATE SERVICES BUSINESS AREA
      OPERATING EXPENSES

33.       Figure 7.4.5 illustrates the Supply Management and Corporate Services Business Area
Operating Expenses.

Figure 7.4.5 - Supply Management and Corporate Services Business Area Operating
Expenses and FTEs
                                                              ($ millions)
 Line                                          2005           2006            2006        2007
 No.              Description                 Actual      Forecast           Actual   Forecast

      1     Compensation                        $9.9         $10.7            $10.8      $10.9
            General Operating
      2     Expenses                              5.9          6.1              5.8         5.5
      3     Subtotal                            15.8          16.8             16.6        16.4
            Licence Plates and
      4     Decals                                3.9          3.4              4.3         3.7
            Corporate Occupancy
      5     Costs                               29.3          29.6             28.8        30.5
            Total Operating
      6     Expenses                           $49.0         $49.8            $49.7      $50.6


            Full Time Equivalent
      7     Averages (FTEs)                      153           161             156         159

34.       Compensation for the Supply Management and Corporate Services business area has
increased by $1.0 million from the 2005 actual to the 2007 forecast. A $0.5 million increase in
compensation over the 2005 actual is related to both an increase in staffing levels (reflected in
the 2007 forecast) to better support business reporting requirements and to recruitment issues
throughout 2005 which led to actual staffing levels below that which was planned. As in other
business areas in the Finance Division, the remaining $0.5 million increase in compensation
levels, from the 2005 actual to the 2007 forecast, is due to the settlement of the Collective
Bargaining Agreement and increases in management compensation.




Insurance Corporation of British Columbia                                                   7.4-11
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

35.      General operating expenses are lower due mainly to a reduction in professional services
expense, storage and handling costs, and depreciation expense.             There were no other
significant changes in any other cost items.

36.      The increase in licence plates and decal costs from the 2005 actual to the 2006 actual is
due to both an increase in costs for the licence plates due to the higher cost of aluminium as
well as an increase in demand for licence plates. The 2007 forecast is lower than 2006 actual
due to the fact a shipment of licence plates that was planned for early January 2007 was
actually delivered in December 2006.

37.      Corporate occupancy costs are a compilation of all costs, except compensation,
associated with the administration of ICBC’s owned and leased facilities. The increase in these
costs for 2007 forecast over 2006 actual can be attributed to a number of expense items. The
more significant ones include an increase in janitorial costs, depreciation expense, property
taxes, and lease payments. Janitorial costs are expected to increase by approximately
$0.3 million due to a change in external contractors and a requirement to improve service levels.
Depreciation expense is forecast to increase by approximately $0.3 million as a result of adding
some new leasehold improvements, Head Office upgrades, and modifications to existing owned
facilities.   In 2007 forecast, property taxes are projected to increase by approximately
$0.5 million due to an increase in assessed property values.         Lease costs are forecast to
increase by approximately $0.2 million due to the addition of new leased facilities in North
Vancouver as well as the expansion of leased facilities in Surrey.


D        CONCLUSION
38.      The Finance Division forecasts an increase in operating expenses of 4.2% or
$3.1 million in 2007 forecast over 2006 actual. The $2.0 million of this increase is required to
provide for increases in staffing, compensation levels, and general expenses. The remainder of
the increase is required to provide for increases of $1.7 million in corporate occupancy costs for
items such as janitorial costs, property taxes, and additional depreciation. The increases are
offset by a $0.6 million decrease in costs for licence plates and decals. The Finance Division is
continually striving to provide better service levels to all areas of ICBC and also meet the
increasing demands for better and more responsive business reporting and analytics (such as
the need for more detailed and segmented levels of corporate governance and reporting). ICBC
believes the Finance Division’s operating expenses forecast for 2007 is reasonable and

Insurance Corporation of British Columbia                                                    7.4-12
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

represents the expenditures required by all business areas in the Finance Division to provide
ICBC with the level of customer service needed to ensure ICBC is operating in an efficient and
cost effective manner.




Insurance Corporation of British Columbia                                                  7.4-13
March 16, 2007
                                APPENDIX 7.4 A

               PREMIUM TAX EXEMPTION




Insurance Corporation of British Columbia
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission



                                           Table of Contents                                     STYLE: Title – Table of Contents




A Introduction ................................................................................................................. 7.4 A-1
     A.1 Management Response........................................................................................ 7.4 A-1




Insurance Corporation of British Columbia                                                                                       7.4 A-i
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A          INTRODUCTION
1.         There was discussion during the 2006 oral hearing before the Commission regarding
policyholders being charged for premium tax related to the Non-insurance cost component of
Basic insurance. In the July 2006 Decision, the Commission made the following comments:
                   There was a brief discussion during the proceeding as to whether
                   or not it might be useful for the Corporation to consider seeking an
                   exemption from the Premium Tax of the non-insurance cost items
                   recovered as part of what is now referred to as the Basic
                   Insurance premium (T7:194). The Commission Panel considers
                   that there may be some advantage for consumers, both currently
                   and prospectively, in having the non-insurance costs now included
                   in the ICBC Basic Insurance premium, exempted from the
                   premium tax by following the procedure set out in Section 17 of the
                   Premium Tax Act. ICBC is requested to report back to the
                   Commission on management’s views of such action, the estimated
                   total current cost saving that would accrue to Basic and Optional
                   Insurance policyholders if the exemption were granted by
                   government for all non-insurance costs, and any negatives or
                   costs that may be incurred were such a policy to be followed up.
                   Of course, the Corporation may request such an exemption on its
                   own accord at any time.1

2.         The following presents ICBC’s management views on the above quoted request by the
Commission.

A.1        MANAGEMENT RESPONSE
3.         In the July 2006 Decision, the Commission suggested that there may be some
advantage for consumers in having the Non-insurance costs now included in the Basic
insurance premium exempted from the premium tax by following the appeal procedure set out in
section 17 of the Insurance Premium Tax Act (the Act).



1
    July 2006 Decision, page 76.

Insurance Corporation of British Columbia                                                  7.4 A-1
March 16, 2007
                                       ICBC March 16, 2007 Filing with the BC Utilities Commission

4.         Section 17 of the Act provides for appeal to the Minister of Provincial Revenue when a
person objects to their assessment or considers that they are not liable for payment of tax under
the Act in the amount set out in their return. Section 17 intends that the Minister will examine
the situation to determine whether a company has been properly assessed and whether tax is
payable in accordance with the wording of the Act.

5.         An appeal under section 17 of the Act would only be successful if it could be established
that the premium tax assessment was not in accordance with the provisions of the Act. ICBC
management does not believe that an appeal pursuant to section 17 would succeed, as the
ICBC assessment is in accordance with the provisions of the Act. Rather, at issue is how
premium is defined, and whether or not government would consider refining its definition of
premium to exclude the Non-insurance costs. This would then exclude the Non-insurance costs
from the calculation of premium tax.

6.         Under the Act, the full amount charged to ICBC’s policyholder is taxable premium.

           The Act sets out the following definitions:2

                   “taxable premium” of a taxable insurer for a taxation year means a BC premium
                   that is received or became receivable by the insurer in the taxation year, other
                   than a premium received

                   (a) as consideration for an annuity contract,

                   (b) from another taxable insurer under a contract of reinsurance, or

                   (c) [Repealed 2004-40-21.]

                   (d) for medical services or health care under a medical services or health care
                        plan approved by regulation;

                   “BC premium” means the premium payable under a contract of insurance in
                   respect of a person resident or property situated in British Columbia at the time
                   the premium becomes payable;



2
    Insurance Premium Tax Act, section 1(1).

Insurance Corporation of British Columbia                                                      7.4 A-2
March 16, 2007
                                         ICBC March 16, 2007 Filing with the BC Utilities Commission

                    “premium” includes any payment made as consideration for a contract of
                    insurance, or a contract of reciprocal insurance, including

                             (a) premium deposits,

                             (b) assessments,

                             (c) registration fees,

                             (d) contributions by members, and

                             (e) any other compensation,

                         but excluding payments made as consideration for

                             (f) a contract of marine insurance that is not pleasure craft insurance, or

                             (g) a contract of reciprocal marine insurance that is not pleasure craft
                                    insurance;




7.         At the current premium tax rate of 4.4%, the estimated total cost saving that would
accrue to Basic insurance policyholders would be approximately $4 million per annum if the
Non-insurance costs currently included in the Basic insurance premium were exempted from the
definition of taxable premium on which premium tax is charged. This cost saving is based on
Non-insurance costs of $97 million.3               There would be no impact to Optional insurance
policyholders as Non-insurance costs are included in the Basic insurance premium only.

8.         Should ICBC receive approval to have Non-insurance costs exempted from the definition
of premium, thereby decreasing premium taxes, the Province’s revenues would be reduced by a
corresponding amount.

9.         ICBC management has advised the Treasury Board of the Government of BC of the
issue raised by the Commission.



3
    2006 year end actual results.

Insurance Corporation of British Columbia                                                          7.4 A-3
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

10.     A legislative amendment would be required to exclude Non-insurance costs from the
taxable premium against which the premium tax is assessed. ICBC does not have the ability to
independently revise the legislation. ICBC management has informed government of the issue
and believes that it is for government to decide if a legislative amendment should be introduced
to have Non-insurance costs exempted from the definition of premium for premium tax
purposes.




Insurance Corporation of British Columbia                                                  7.4 A-4
March 16, 2007
                                APPENDIX 7.4 B

        CAPITALIZATION ACCOUNTING
                  POLICY




Insurance Corporation of British Columbia
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission



                                           Table of Contents
A Introduction ................................................................................................................. 7.4 B-1

B Management Response .............................................................................................. 7.4 B-1




Insurance Corporation of British Columbia                                                                                       7.4 B-i
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


                                      Table of Figures
Figure 7.4.B.1 - Information Technology Capital Expenditures using BC Hydro’s Policy ... 7.4 B-3




Insurance Corporation of British Columbia                                                 7.4 B-ii
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A        INTRODUCTION
1.       In the July 2006 Decision, the Commission accepted the 2006 ISD operating expenses
and noted ICBC’s accounting policy has a “high capitalization ceiling”. As discussed in the
2006 oral hearing, ICBC expenses computer hardware and computer/telephone software that
have a unit cost of $15,000 or less. In the July 2006 Decision, the Commission noted that “this
higher capitalization limit impacts rate stability since periodic investments such as replacements
and upgrading of equipment cause spikes in general operating expenses.”1

2.       The Commission used the example of BC Hydro where capitalization limits for
information technology assets are set lower than that of ICBC:
                 In contrast the capitalization limits for other Crown Corporations,
                 such as British Columbia Hydro and Power Authority (“BC Hydro”)
                 are $5,000 except for computers and related software purchased
                 externally, which have a capitalization limit of $1,000…2

3.       The Commission directed ICBC
                  in its next revenue requirements application to show the effect on
                  rates of the employment of a capitalization policy mirroring the
                  practice of BC Hydro since the commencement of the 2005 policy
                  year.3


B        MANAGEMENT RESPONSE
4.       ICBC has analyzed its information technology (IT) expenses from 2001 to 2007 using
the BC Hydro $1,000 threshold for computers and software and $5,000 threshold for other
IT assets and compared that to the use of ICBC’s capitalization policy. The results are shown in
Figure 7.4.B.1, which illustrates IT expenditures that are expensed using ICBC’s current
threshold, but would be capitalized using the BC Hydro thresholds.            Of the total corporate
IT expenditures, 50% have been allocated to Basic insurance as an illustration of the
approximate impact on Basic insurance policy holders.



1
  July 2006 Decision, page 43.
2
   Ibid.
3
   Ibid.

Insurance Corporation of British Columbia                                                     7.4 B-1
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

5.      It can be seen from the analysis in Figure 7.4.B.1 that in years where there is a
significant upgrade, as in 2003 and 2004, the capital amount expensed (Figure 7.4.B.1, Line 1)
is greater than the amount which would have otherwise been depreciated.             However, in
following years, where capital purchases are not as significant, the depreciation levels are
higher (Figure 7.4.B.1, Line 2).

6.      The impact to Basic insurance policies ranges from a high of $0.87 per policy to a low of
negative $0.50 per policy; however over time the variances fully offset. In other words, the
difference in capitalization policies results in a maximum temporary difference of $0.87 per
Basic insurance policy. Therefore, to capitalize IT expenditures and depreciate the expenditures
over time or to expense them at purchase does not have a significant impact on Basic rates; it is
merely an issue of timing.

7.      To lower the threshold for capitalizing IT costs, ICBC would have to change the policies
and procedures for tracking and maintaining the general ledger for capital expenditures. The
change in procedures would cause additional effort in tracking IT expenditures in the general
ledger and add an administrative burden on ICBC. The change in procedures would not add
value to Basic insurance policyholders.

8.      ICBC has set the capitalization policy for computer equipment and computer/telephone
software at $15,000. This is primarily because assets of this nature are commonly considered
to have a short amortization period.

9.      The employment of a capitalization policy that mirrors BC Hydro does not impact rate
stability as changes in the accounting treatment of IT assets does not have a significant impact
on rates. Periodic minor fluctuations may be observed, however, over a period of time the
different accounting treatments of IT assets will have the same impact on Basic insurance rates.




Insurance Corporation of British Columbia                                                  7.4 B-2
March 16, 2007
                                                                                                                               ICBC March 16, 2007 Filing with the BC Utilities Commission




Figure 7.4.B.1 - Information Technology Capital Expenditures using BC Hydro’s Policy

          Corporate Information Technology
Line                                                     2001 Actual     2002 Actual     2003 Actual     2004 Actual      2005 Actual     2006 Actual      2007 Forecast           2008              2009                2010              Total
             Expenditures including ISD
No
                                                                                                                                                                  (7)               (1)                 (1)              (1)


  1    Corporate IT Capital Expenditures (2)         $      1,169,513   $   1,412,500    $ 5,121,390     $ 8,900,377     $   3,316,407    $   2,427,044   $      1,214,435    $            -    $              -    $           -       $ 23,561,666
  2    Corporate Depreciation (3)                             194,900         625,191        1,714,064       3,855,892       5,461,527        5,329,801          3,599,926         1,766,385         809,238             204,742          23,561,666
  3    Difference per Year                           $        974,613   $     787,309    $ 3,407,326     $ 5,044,485     $ (2,145,120) $ (2,902,757) $          (2,385,491) $ (1,766,385) $          (809,238) $         (204,742)            -

                                       (4)
  4    Basic IT Capital Expenditures                 $        584,757   $     706,250    $ 2,560,695     $ 4,450,188     $   1,658,204    $   1,213,522   $        607,217    $            -    $              -    $           -       $ 11,780,833
                            (4)
  5    Basic Depreciation                            $         97,450   $     312,596    $    857,032    $ 1,927,946     $   2,730,764    $   2,664,900   $      1,799,963    $     883,192     $    404,619        $    102,371          11,780,833
  6    Difference per Year (4)                       $        487,307   $     393,654    $ 1,703,663     $ 2,522,242     $ (1,072,560) $ (1,451,378) $          (1,192,746) $       (883,192) $      (404,619) $         (102,371)            -



       Impact per Basic Policy if using BC Hydro
  8    policy ($) (5)                                $           0.17   $         0.14   $        0.59   $        0.87   $        (0.37) $        (0.50) $              (0.41) $          (0.30) $            (0.14) $         (0.04)         -
    Impact per Basic Premiums Earned if
                          (6)
 10 using BC Hydro policy                                       0.03%            0.02%            0.1%          0.15%           (0.06%)         (0.08%)             (0.07%)          (0.05%)            (0.02%)           (0.01%)             -
Notes:
       (1) Years 2008-2010 are shown to run off depreciation from expenditures in prior years. Capital expenditures for these years have not been planned at this time.

       (2) Corporate IT expenditures over the BC Hydro threshold of $1,000 for computers and $5,000 for other IT assets which would be capitalized if using the B.C. Hydro policy and expensed using the ICBC capitalization policy.
       (3) Assuming a short asset life of 3 years, the depreciation rate is set at 33 1/3% per year; in the first year depreciation is calculated as 50% of capital expenditures at 33 1/3% per year.
       (4) Allocated 50% of Corporate for illustrative purposes.
       (5) Dollar impact to each Basic policyholder if BC Hydro capitalization policy applied. Positive amount is a charge and a negative amount is a savings. Denominator is the Basic policies earned in 2005 for
       illustrative purposes.
       (6) Percentage impact to premium dollars earned if BC Hydro capitalization policy applied. Denominator is the Basic premiums earned in 2005 for illustrative purposes.
       (7) 2007 Plan IT capital expenditures over the BC Hydro threshold have been determined by applying the weighted average of amounts meeting the BC Hydro threshold over total expenditures for the years
       2001-2006.




Insurance Corporation of British Columbia                                                                                                                                                                                           7.4 B-3
March 16, 2007
                                    CHAPTER 7.5

                HUMAN RESOURCES AND
                   CORPORATE LAW




Insurance Corporation of British Columbia
March 16, 2007
                                          ICBC March 16, 2007 Filing with the BC Utilities Commission



                                         Table of Contents
A Human Resources and Corporate Law Overview ........................................................7.5-1
    A.1 Human Resources Reorganization ...........................................................................7.5-2

B Human Resources and Corporate Law Operating Expenses .....................................7.5-3

C Human Resources and Corporate Law Business Functions......................................7.5-5
    C.1 Human Resources ....................................................................................................7.5-6
        C.1.1 Strategic Advice and Leadership ..................................................................7.5-6
        C.1.2 Core Services................................................................................................7.5-6
    C.2 Corporate Law ..........................................................................................................7.5-9




Insurance Corporation of British Columbia                                                                                       7.5-i
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission




                                      Table of Figures
Figure 7.5.1 – Human Resources and Corporate Law Operating Expense and FTEs ...........7.5-4
Figure 7.5.2 – Human Resources Operating Expenses and FTEs .........................................7.5-8
Figure 7.5.3 - Corporate Law Operating Expenses and FTEs ..............................................7.5-10




Insurance Corporation of British Columbia                                                                7.5-ii
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A       HUMAN RESOURCES AND CORPORATE LAW OVERVIEW
1.      The Human Resources and Corporate Law Division includes two distinct functional
areas of responsibility.

2.      The first functional area, Human Resources, provides strategic advice and leadership to
support ICBC in achieving the goal of developing a high performing, engaged and capable
workforce. Human Resources also provides core services that facilitate the efficient, ongoing
operations of ICBC’s workforce. These core services include: training, payroll, retirement and
benefit administration, employee relations and occupational health and wellness.

3.      The second functional area, Corporate Law, provides to all ICBC divisions a complete
range of legal services, except for most claims-related legal services, which are provided by the
Provincial Litigation Services and Special Counsel departments. Corporate Law also manages
the use of non claims-related external legal counsel.

4.      During 2006, ICBC updated its corporate goals, including its commitment to creating a
performance-driven company supported by a high-performing, engaged and capable workforce.
The revised people goal was primarily informed by internal research which assessed ICBC’s
culture, and identified the strengths and weaknesses relative to the changing business
environment and ongoing marketplace pressures. The research defined strategic areas of focus
for Human Resources to ensure that employees have the support, skills and training required to
maximize ICBC’s future success. These areas of focus include:

        •    Job Standards and Competencies

        •    Talent Acquisition

        •    Talent Management

        •    Leadership Culture

5.      The purpose of working on Job Standards and Competencies is to build on existing
definitions of the expected work outcomes and success profiles for key management levels.
Having a clear understanding of the work requirements of each level, and of the competencies
and experiences that are needed from an individual to be successful in their role, is critical to

Insurance Corporation of British Columbia                                                    7.5-1
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

developing leaders in ICBC and framing recruitment and performance management practices
within the company.

6.      ICBC recognizes that it must improve the Talent Acquisition process so that it can
continue to recruit and retain top performers who have the skills necessary to help the company
achieve its business objectives. This focus is becoming increasingly important as changing
workplace demographics are creating a “fight for talent” in British Columbia, mainly as a result of
record low unemployment rates and a sustained robust economy, coupled with a pending baby
boomer retirement bulge. ICBC must be able to compete effectively for necessary talent, which
means creating a connection with a new generation of workers who have increased choices and
opportunities for the future.

7.      The focus on Talent Management means ensuring that existing employees have the
necessary information and development opportunities to acquire positions specifically suited to
their skills and experiences, and aligned with supporting ICBC’s success. It also means creating
a succession management process to ensure the critical transfer of experience and knowledge
to sustain ICBC’s long-term performance.

8.      Improving the Leadership Culture at ICBC means developing a stronger performance
management framework so that individual, regional and divisional goals are aligned with
corporate goals, with clear accountabilities identified at each level of planning. It also means
providing leadership development programs for managers. ICBC will implement these programs
systematically, providing them first to senior management and ultimately to all managers.

A.1     HUMAN RESOURCES REORGANIZATION
9.      The establishment of the four objectives noted above meant that Human Resources had
to change its focus and realign its staff to ensure its ability to effectively deliver on its priority
objectives. As a result, a reorganization of the Human Resources structure took place through
2006 and was completed by year end. The reorganization of Human Resources did not affect
the structure of Corporate Law.

10.     The reorganization positioned Human Resources to effectively allocate resources to the
emerging priorities described under the four objectives. Core services are provided to all
employees, and strategic advice and planning services are provided to ICBC’s Executive and


Insurance Corporation of British Columbia                                                         7.5-2
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

management. A broader explanation of services provided by the Human Resources and
Corporate Law Division is found in Section C. The reorganization did not change the financial
allocation within Human Resources and Corporate Law among the Basic, Optional and Non-
insurance lines of business. The services provided by Human Resources continue to be the
provision of:

        •    Core services that facilitate the efficient, ongoing operations of ICBC’s workforce.

        •    Strategic advice and leadership in support of ICBC’s goal of maintaining a high
             performing, engaged and capable workforce.


B       HUMAN RESOURCES AND CORPORATE LAW OPERATING
        EXPENSES
11.     The compensation, general expenses and full-time equivalents (FTEs) for 2005 to 2007
for the Human Resources and Corporate Law Division are shown in Figure 7.5.1. The dollar
amounts are shown in thousands ($000s) due to the relatively small compensation and
operating expense numbers associated with the Human Resources and Corporate Law
Division. Rounding to millions would not accurately reflect the changes in expenditures that
have occurred over the period.




Insurance Corporation of British Columbia                                                           7.5-3
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


Figure 7.5.1 – Human Resources and Corporate Law Operating Expense and FTEs
                                                             ($ 000's)
 Line                                         2005       2006         2006        2007
 No.               Description               Actual    Forecast      Actual     Forecast       Reference


   1       Compensation                       $9,917     $11,016     $10,165      $10,845
           General Expenses
   2       (Professional Services)             3,211       3,015       2,625        3,202
           General Expenses
   3       (Other)                               904         922       1,225        1,140

   4       General Expenses (Total)            4,115       3,937       3,850        4,342
           Total Operating                                                                   Chapter 7.1, Fig.
   5       Expenses                          $14,032     $14,953     $14,015      $15,187    7.1.2, Line 4
           Full Time Equivalent
   6       Averages (FTEs)                       125         130         118          124



12.      In late 2005, ICBC decided to move employees involved in the maintenance and
sustainment of the SAP computer system from the Human Resources and Corporate Law
Division to the Information Services Division (ISD). The decrease in compensation costs and
average FTE numbers from 2006 forecast to 2006 actual is due, in part, to this transfer of
employees.

13.     The Human Resources reorganization referred to in section A.1, was completed in 2006
and implemented without an increase in compensation expense. This is consistent with the
division’s goal to maintain a disciplined approach to controllable costs and to continue to provide
services to internal customers.

14.     The 2006 actual total operating expenses are flat compared to the 2005 actuals and
6.3% below the 2006 forecast. The 2006 actuals reflect the reallocation of resources to ISD.
Both 2006 forecast and 2006 actuals include the general increases to compensation levels
referred to in Chapter 7.1. The Human Resources and Corporate Law Division has continued to
deliver service to its internal customers while maintaining a disciplined approach to managing
costs and a stable number of employees. The decreased compensation expense results from




Insurance Corporation of British Columbia                                                      7.5-4
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

the reduced number of FTEs resulting from the transfer of employees to ISD combined with
vacancies that occurred during the year.

15.     General expenses (total) remained essentially flat with a 2.2% decrease comparing 2006
forecast to actual for 2006.

16.     Human Resources and Corporate Law anticipates an 8.4% increase in total operating
expenses in 2007, compared to the 2006 actual. The compensation increase is the result of
staffing all vacancies that existed in 2006 and the full one year impact of the salary increases
referred to in Chapter 7.1.

17.     The increase in general expenses (total) for the 2007 forecast over the 2006 actual is in
Professional Services, which reflects costs associated with delivering the services that support
Human Resources key areas of focus as outlined in Section A: Job Standards and
Competencies, Talent Acquisition, Talent Management and Leadership Culture. As previously
noted, Human Resources is focusing its efforts in these areas to ensure that ICBC’s workforce
is effectively positioned to support the corporate strategy in a changing business environment.
Investments will be primarily directed at continuing to build a culture of accountability,
strengthening the company’s leadership development efforts, improving the recruitment process
and working on employee retention and succession, which is critical to ensuring the continuity of
ICBC operations.

18.     Shifting workplace demographics (i.e. more workers leaving than entering the workforce,
less available workers in a robust economy, etc.) underscores ICBC’s requirement to ensure
that the company can attract a new generation of workers who have significant choice and
opportunity. It also means that ICBC must retain its top performers by creating leadership
development options and clear career paths that offer certainty of opportunity.


C       HUMAN RESOURCES AND CORPORATE LAW BUSINESS
        FUNCTIONS
19.     The Human Resources and Corporate Law Division will continue to provide services to
all ICBC divisions in 2007. Services provided by Human Resources and Corporate Law include
two distinct functional areas of responsibility.




Insurance Corporation of British Columbia                                                    7.5-5
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C.1     HUMAN RESOURCES
20.     Human Resources provides strategic advice and leadership to support ICBC in
achieving its goal of developing a high performing, engaged and capable workforce. It also
provides core services that facilitate the efficient, ongoing operations of ICBC’s workforce.

C.1.1 STRATEGIC ADVICE AND LEADERSHIP

21.     This aspect of Human Resources provides strategic advice and leadership to support
ICBC in achieving its goal of developing a high performing, engaged and capable workforce.
This means providing leadership for ICBC in achieving the four objectives outlined in Section A:
Job Standards and Competencies, Talent Acquisition, Talent Management and Leadership
Culture. These objectives set direction for ICBC over the 2007 – 2009 period. Service areas of
focus for 2007 include:

        •    Frontline service delivery in recruitment and selection.

        •    Developing new systems to improve hiring practices and the quality of ICBC’s
             workforce.

        •    Improving the capabilities of current staff.

        •    Providing services to support change management.

C.1.2 CORE SERVICES

22.     The core services aspect of Human Resources are the following employment-related
services and other services that facilitate the efficient, ongoing operations of ICBC’s workforce.

23.     Training: Services in the area of business skills training such as personal computing and
specific job skills training for key, multiple employee positions such as those in claims services,
driver services and call centres. In addition, Human Resources provides training to brokers to
strengthen their understanding of ICBC products.

24.     Payroll: Full payroll services are provided to all employees, supported by the SAP
system.




Insurance Corporation of British Columbia                                                       7.5-6
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

25.     Retirement & Benefit Plan Administration: Services in the area of pension and benefit
plan administration for all ICBC employees. The primary costs in this area involve pension fund
performance and the requirement for consulting and actuarial services.

26.     Employee Relations: Services in this area involve general consulting support to
managers. In addition to providing advice on human resource practice, this also involves
providing additional business analytics support to corporate management, as well as services in
business effectiveness. As ICBC has a unionized workforce, this includes providing advice in
the application of the collective agreement administration, as well as dispute resolution,
application of labour law, and collective bargaining. Finally, employee communications services
support ICBC in its messaging to all employees.

27.     Occupational Health and Wellness: Services in support of the health and safety of
employees and includes pre-placement health assessments, ergonomic reviews, and return to
work programs. There is also a compliance aspect to the work performed in this area as it
applies to the Workers’ Compensation Act.

28.     The compensation, general expenses and FTEs for 2005 to 2007 for Human Resources
are shown in Figure 7.5.2 below.




Insurance Corporation of British Columbia                                                   7.5-7
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


Figure 7.5.2 – Human Resources Operating Expenses and FTEs
                                                                     ($ 000's)
 Line                                              2005            2006            2006           2007
 No.               Description                    Actual       Forecast           Actual      Forecast

   1       Compensation                          $8,512          $9,305           $8,554         $9,063
           General Expenses
   2       (Professional Services)                 1,897          1,525            1,380             2,062
           General Expenses
   3       (Other)                                  783             767            1,099              987

   4       General Expenses (Total)                2,680          2,292            2,479             3,049
           Total Operating
   5       Expenses                             $11,192         $11,597          $11,033       $12,112
           Full Time Equivalent
   6       Averages (FTEs)                          111             112             103               106



29.     As mentioned previously, ICBC made the decision to move employees involved in
sustaining the SAP computer system from the Human Resources and Corporate Law Division to
ISD, effective October 2005. This decision consolidated the maintenance and enhancement
work on this system in ISD to further ensure uniform standards and reduce overall costs. The
change involved moving seven FTE positions and the related compensation from Human
Resources to ISD and did not result in any change to compensation expense at a corporate
level. Subsequent discussion on total operating expenses will reflect this reallocation of
employees.

30.     The 2006 Professional Services costs in Human Resources consist primarily of costs
incurred to administer the retirement plans and comprise 62.5% of the total Professional
Services costs. This percentage spend has remained relatively consistent over the 2003 – 2006
period. The costs related to retirement plan administration are forecast to remain flat from 2006
to the 2007 forecast.

31.     The general expenses costs relate to items such as recruitment costs, job evaluation,
and occupational health and wellness expenses. These costs are expected to decrease slightly
in 2007.



Insurance Corporation of British Columbia                                                    7.5-8
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

32.      The 2007 forecast for general expenses (total) increases are in Professional Services
and reflect the work being done to improve ICBC’s ability to attract and retain a workforce that
supports the achievement of business objectives. The primary areas of focus are Job Standards
and Competencies, Talent Acquisition, Talent Management, and Leadership Culture, where
ICBC will build on existing programs.

C.2     CORPORATE LAW
33.     Corporate Law balances the number of in-house lawyers and legal support staff against
the cost of retaining external counsel. There are cost efficiencies and strategic advantages in
maintaining a core in-house legal workforce. ICBC supplements this group with external counsel
to manage variable demand for service, and to fill requirements where specialized expertise is
needed.

34.     Corporate Law supports ICBC’s Board of Directors, Executive and divisions in meeting
their business objectives by providing legal services addressing legislative, regulatory and
governance issues.

35.     Specific services, which have remained relatively unchanged since 2005, include:

        •    Risk Identification – awareness of the legal environment, identifying legal risk, and
             advising key personnel throughout ICBC.

        •    Risk Management – Corporate Law reviews and approves contracts, and legislative
             matters that are referred to government, and manages non-claims related litigation.
             The department will also provide legal support to cross-divisional project teams.

        •    Oversight – Corporate Law works with Human Resources, and Corporate Audit and
             Risk Management in investigating and reporting on possible cases of non-
             compliance with internal policies or external laws.

        •    Management of professional services – Corporate law is responsible for procuring
             external legal counsel for non-claims related services, as well as managing those
             services and the associated costs. External legal counsel provide advice in
             specialized areas such as intellectual property, tax law and environmental law. The



Insurance Corporation of British Columbia                                                        7.5-9
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

               compensation, general expenses, and FTEs for 2005 to 2007 for Corporate Law are
               shown in Figure 7.5.3 below.

Figure 7.5.3 - Corporate Law Operating Expenses and FTEs
                                                                   ($ 000's)
 Line                                          2005           2006              2006            2007
 No.                Description               Actual        Forecast           Actual         Forecast

   1          Compensation                      $1,405         $1,711             $1,611          $1,782
              General Expenses
   2          (Professional Services)            1,314          1,490              1,245           1,140
              General Expenses
   3          (Other)                              121            155                   126             153

   4          General Expenses (Total)           1,435          1,645              1,371           1,293
              Total Operating
   5          Expenses                          $2,840         $3,356             $2,982          $3,075
              Full Time Equivalent
   6          Averages (FTEs)                          14          18                   15              18




36.      The Corporate Law 2006 total operating expenses are 11.1% below forecast. The
reduction in expenditures is split between Compensation at a 3% decrease and general
expenses (total) at an 8.1% decrease.

37.      The compensation variance is due to ongoing vacancies experienced during the year.
The variance in general expenses (total) is in Professional Services expenses and is due to
lower than anticipated expenses required for external counsel and other costs associated with
litigation.

38.      Corporate Law is forecasting a modest increase in compensation in 2007. This is a
result of bargaining unit and non-bargaining unit employees’ compensation increases referred to
in Chapter 7.1, and the plan to bring Corporate Law to full staff complement.




Insurance Corporation of British Columbia                                                      7.5-10
March 16, 2007
                                    CHAPTER 7.6

   INFORMATION SERVICES DIVISION




Insurance Corporation of British Columbia
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission



                                           Table of Contents
A Information Services Division Overview.......................................................................7.6-1
     A.1 Technology Management at ICBC............................................................................7.6-2
         A.1.1 Management Approach.................................................................................7.6-2
         A.1.2 IT Governance ..............................................................................................7.6-3
         A.1.3 Chargeback...................................................................................................7.6-5
         A.1.4 Assessment of IT ..........................................................................................7.6-6

B Information Services Division Operating Expenses....................................................7.6-6
     B.1 Divisional Financial Summary...................................................................................7.6-6
     B.2 Cost Drivers ..............................................................................................................7.6-7
     B.3 Future Spending Trends .........................................................................................7.6-11

C Information Services Division Business Areas..........................................................7.6-12
     C.1 IS Planning, Architecture and Administration..........................................................7.6-12
     C.2 IS Solutions.............................................................................................................7.6-13
     C.3 IT Infrastructure ......................................................................................................7.6-15

D Conclusion.....................................................................................................................7.6-17

Appendix 7.6 A - IT Strategic Plan..................................................................................... 7.6-A

Appendix 7.6 B - IT Capital Plan ........................................................................................ 7.6-B

Appendix 7.6 C - IT Benchmarking Plan ........................................................................... 7.6-C




Insurance Corporation of British Columbia                                                                                        7.6-i
March 16, 2007
                                        ICBC March 16, 2007 Filing with the BC Utilities Commission



                                          Table of Figures
Figure 7.6.1 IT Governance Model ........................................................................................7.6-4
Figure 7.6.2 ISD Operating Expenses and FTEs...................................................................7.6-8
Figure 7.6.3 IS Planning, Architecture and Administration Operating Expenses and FTEs 7.6-13
Figure 7.6.4 IS Solutions Operating Expenses and FTEs ...................................................7.6-14
Figure 7.6.5 IT Infrastructure Operating Expenses and FTEs ..............................................7.6-16




Insurance Corporation of British Columbia                                                                              7.6-ii
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission


A          INFORMATION SERVICES DIVISION OVERVIEW
1.         ICBC conducts business across the province of BC, providing systems access to 1,055
business locations, as well as to customers, partners, and suppliers. To accomplish this ICBC
employs technology to enable cost effective and efficient business processes and to support the
delivery of services to our customers.

2.         The Information Services Division (ISD) is responsible for planning, developing,
managing, and sustaining information technology (IT) at ICBC. ISD operates as an internal
service provider, providing leadership in IT, technology and systems planning, development and
delivery of business systems solutions, and supporting technology infrastructure (hardware,
software, and voice and data telecommunications).

3.         Section A of this chapter provides an overview of ISD’s management approach and
governance model. In addition, this section describes how the division assesses and measures
its effectiveness. Section B provides a summary of the division’s operating expenses and cost
drivers. Section C describes ISD’s main organizational groupings, with a summary of the
operating expenses for each.

4.         There are three appendices to this document:

           •   Appendix 7.6 A – IT Strategic Plan. This document responds to the Commission’s
               July 2006 Decision which asked for “the enterprise strategic IT plan and budgets
               which closely align with the long range needs of the business and … enable the
               Corporation to achieve economies of scale and appropriate allocation of IT
               resources.”1

           •   Appendix 7.6 B – IT Capital Plan. This document updates ICBC’s October 2006
               Filing as to the development of the IT capital planning framework, as well as a
               summary of the 2007 planned IT capital expenditures. Also included is the proposed
               process for reporting on individual projects as per the Commission’s Letter L-82-06




1
     July 2006 Decision, page 37.

Insurance Corporation of British Columbia                                                      7.6-1
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

         •   Appendix 7.6 C – IT Benchmarking Plan. This document responds to the
             Commission’s July 2006 Decision and includes the high level benchmarking metrics
             employed by ISD as well as an update of the recommendations from the three
             benchmark reports discussed in the 2006 Revenue Requirements proceeding.

A.1      TECHNOLOGY MANAGEMENT AT ICBC
A.1.1 MANAGEMENT APPROACH

5.       ICBC’s technology environment is complex, with most systems applications and
technologies tightly coupled. ISD provides technology management for both on-going system
(core services) support and for technological changes and improvements in support of renewal
or business change. These are implemented on a corporate-wide or specific business area
basis.

6.       ICBC monitors and manages technology lifecycles of its IT investments. The technology
life cycle is defined as the "cradle to grave" life cycle for hardware and software, which starts
with a hardware or software technology innovation and finishes when the technology on which
the products are based is obsolete or no longer used. No two technologies move through this
life cycle at the same pace. These are reflected in ICBC’s IT Strategic Plan (see Appendix 7.6
A). IT Strategic Plan investment requirements inform and provide input into ICBC’s IT Capital
Plan (see Appendix 7.6 B). These two plans support ICBC’s priorities and business direction as
well as sustainment of the existing IT assets.

7.       ISD has a key objective of being an efficient and cost effective provider of IT services.
To achieve this objective ISD has:

         •   Historically and consistently implemented cost reduction initiatives and service
             delivery improvement projects and developed key performance indicators including
             exceeding customer satisfaction target scores.

         •   Consistently delivered high-quality service with minimal system and equipment
             failures.

         •   Out-tasked specific IS Infrastructure functions (for example, the contract to provide
             Personal Computer (PC) maintenance).


Insurance Corporation of British Columbia                                                    7.6-2
March 16, 2007
                                       ICBC March 16, 2007 Filing with the BC Utilities Commission

           •   On an ongoing basis re-negotiated vendor contracts to obtain current market
               discounts. In 2006 savings of $343,000 were achieved with IBM and $550,000 with
               Network BC.

           •   Initiated programs resulting from benchmarking comparisons (refer to Appendix
               7.6 C - IT Benchmarking Plan).

A.1.2 IT GOVERNANCE

8.         IT Governance is a general concept defining the accountability framework for effective IT
investment decisions. IT Governance is integrated with ICBC’s corporate governance model.2
IT Governance includes the IT Strategic Plan which is aligned with corporate strategic direction
and influenced by external industry factors and the operational needs of the existing IT
environment. The IT Strategic Plan informs the multi-year IT Capital Plan which is implemented
through ICBC’s annual operating budget. Monitoring and tracking of IT service quality and
value provided by ISD is performed through annual benchmarking and customer surveys. IT
Governance also includes establishing and maintaining IT best practices, policies, standards
and procedures. Figure 7.6.1 outlines IT Governance at ICBC.




2
    Chapter 7.1 Operating Expenses: Introduction.

Insurance Corporation of British Columbia                                                      7.6-3
March 16, 2007
                                        ICBC March 16, 2007 Filing with the BC Utilities Commission

Figure 7.6.1 IT Governance Model




                                                    Corporate Strategy
                Exec.                                                                   Corp.
               Comm.                                                                  Governance




                                     IT Strategic Plan              IT Capital Plan
               Endorse                                                                    IT
                  IT                                                                  Governance
               projects




                                                     Annual Operating
                                                      Plan & Budget




                                    Industry Trends and          Customer Survey
                                        existing IT             and Benchmarking
                                         portfolio




9.         Investments in systems (whether an enhancement, replacement or new) are sponsored
by the business areas deriving value from the IT investment. ICBC’s Executive Committee
approves IT expenditures ensuring expenditures are aligned with corporate priorities. On
projects over $5 million, approval by the Board of Directors is required.3 Please see Appendix
7.6 A – IT Strategic Plan and Appendix 7.6 B – IT Capital Plan.

10.        ISD sponsors infrastructure technology investments spanning multiple business areas
on behalf of ICBC. ISD sponsored projects and plans, including the IT Strategic Plan and the IT
Capital Plan, are endorsed via ICBC’s Executive Committee. Members of the Executive
Committee are informed of IT trends and issues. They develop an understanding of the impact
of business direction and decisions, and their influence on ICBC’s IT investments. This process


3
    Chapter 7.7, Corporate Costs.

Insurance Corporation of British Columbia                                                          7.6-4
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

enhances the alignment of IT investments to corporate strategies and goals, managing IT as a
strategic business tool.

11.     Business justification and analysis of alternatives for IT investments is completed by the
project sponsor before the expenditure is approved. When plan changes occur, investment
items are re-prioritized, ensuring capital costs are managed within the annual budget and plan.
Refer to the IT Capital Plan for details on annual, semi-annual, quarterly and monthly review
processes.


A.1.3 CHARGEBACK

12.     Although most of ICBC’s technology expenditures are expenses of ISD, business areas
throughout ICBC are allocated or “charged back” the costs of the IT services they consume.
ICBC does this to ensure appropriate use of IT services and to inform business areas of their IT
consumption.       ICBC transfers technology costs where usage is within the control of the
individual, such as telephone usage. This promotes appropriate use of IT resources, as end
users understand what they are being charged for and are able to affect their consumption of
the product and/or service.

13.     ISD transfers costs to business areas in the following instances:

        •    A portion of telecommunications charges paid to suppliers on behalf of ICBC are
             transferred to the business areas responsible for the cost incurred.

        •    Installations, moves, additions and changes to both telephones and desktop
             computers are transferred to be expenses of the business area requesting the
             service.

        •    Effort expended and acquisitions undertaken by ISD in support of corporate projects
             initiated by ICBC business areas are paid by each project.             See Chapter 7.7
             Corporate Costs for more information on corporate projects.

        •    Costs for infrastructure environments are transferred to business areas of ICBC
             based on the proportionate amount of service consumed.




Insurance Corporation of British Columbia                                                     7.6-5
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

A.1.4 ASSESSMENT OF IT

14.     ISD employs metrics and benchmarks to establish comparisons of IT expenditures and
efficiencies through continuous improvement programs, periodic benchmarking, market
assessments and cost comparisons with insurance industry peers.

15.      These assessments provide a comparative analysis of expenditures against enterprises
with similar workloads, complexities and performance characteristics.        Assessment results
identify potential improvement opportunities for ISD.

16.     As requested by the Commission in its July 2006 Decision, Appendix 7.6 C of this
chapter outlines a Benchmarking Plan encompassing a broad range of metrics together with a
timeline for conducting benchmarking studies. Also included is a summary of observations
arising from previous benchmarking undertakings.

17.     To assess the level of satisfaction of ISD services, ISD conducts an annual internal
customer satisfaction survey.           The survey is randomly distributed to a subset of ICBC
management, confidential, and bargaining unit employees. The survey has been conducted
each of the past five years and in each year a target satisfaction rating is established. ISD’s
customer satisfaction target has risen from an initial 85% in 2002 to 90% in 2006.

18.     ISD exceeded its 2006 customer satisfaction target with 92% of survey respondents
indicating satisfaction with the services provided by ISD.


B       INFORMATION SERVICES DIVISION OPERATING EXPENSES
B.1     DIVISIONAL FINANCIAL SUMMARY
19.     The ISD operating budget includes ongoing expenditures in support of computer
applications and databases, servers, desktop equipment, data network, and basic telephony.
These items, including compensation, represent a planned 2007 expenditure of $75 million.

20.     ISD’s expenses are planned to increase by 1.1% or $0.8 million between 2006 and
2007, primarily due to compensation for existing full-time equivalents (FTEs) and plans to fill




Insurance Corporation of British Columbia                                                   7.6-6
March 16, 2007
                                      ICBC March 16, 2007 Filing with the BC Utilities Commission

vacant positions. Aside from a transfer of employees from the Human Resources and Corporate
Law Division,4 the ISD FTE forecasted budget of 500 FTEs has not increased since 2005.

21.        In 2005, ISD’s costs expressed as a percentage of net premiums written was 2.24% or
$23 per policy in force. This compares with the Canadian Benchmark of $42 for each policy in
force and the US Auto Benchmark amount of $63 for each policy in force. This information is
provided by the Ward Group, whose most recent insurance industry benchmarking available is
from 2005. For more information on benchmark comparisons relative to Canadian Benchmark
and US Auto Benchmark data, refer to Appendix 7.6 C of this chapter.

B.2        COST DRIVERS
22.        Variation in ISD’s year-to-year operating costs are expected. Inflationary increases and
the impact of supporting new applications may be offset by savings resulting from the
negotiation of multi-year contracts (for example Network BC, Unix server maintenance) and
decreased support costs for replaced and newer equipment, such as the mainframe computer
replacement. The cost of periodic replacements of hardware and software do not occur equally
each year and therefore result in fluctuations in ISD expenses.

23.        In addition to common cost drivers such as business volumes, number and type of
business locations, hours of service, and compensation. ISD operating costs are also influenced
by:

           •   The number and scope of corporate projects with an IT component, including the
               ongoing operating costs of systems and technology implementations resulting from
               corporate projects.

           •   Investment in new technologies, or the replacement of existing technologies which
               have reached the end of their useful life or are no longer supported by the vendor.

           •   Multi-year vendor hardware and software licensing agreements and equipment
               maintenance costs.

           •   Workplace provisioning and support for ICBC employees (telephones and personal
               computers).

4
    Refer to Chapter 7.5 Human Resources and Corporate Law for more information, paragraph 12.

Insurance Corporation of British Columbia                                                        7.6-7
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

24.     The expenses and FTEs from 2005 to 2007 for the Information Services Division (ISD)
are shown in Figure 7.6.2.

Figure 7.6.2 ISD Operating Expenses and FTEs


                                                        ($ millions)
                                             2005       2006      2006       2007
 Line
 No.            Description                 Actual   Forecast    Actual   Forecast                    Reference
   1      Compensation                      $ 38.1      $ 41.5   $ 41.2      $ 42.7
   2      General Expenses                      25        32.3     24.4        24.5
   3      Depreciation                         7.4         7.1      8.5         7.7
          Total Operating
   4      Expenses                           $70.5      $80.9     $74.1      $74.9    Chapter 7.1, Fig. 7.1.2; line 5
          Full Time Equivalent
   5      Averages (FTEs)                     487         500      493         506




25.     A major cost component of the Information Services Division is employee compensation,
representing approximately 57% of the division’s total operating expenses for 2007.
Compensation has increased since 2005, primarily as a result of general compensation
increases for bargaining unit and non-bargaining unit employees, as described in Chapter 7.1.

26.     Aside from a transfer of seven positions, with associated workload, from the Human
Resources and Corporate Law Division late in 2005 (therefore not reflected in the 2005 actual
expenditure), ISD FTE numbers from the 2005 forecast of 500 FTEs to the 2007 forecast of 506
FTEs has remained unchanged. In 2006, new hires were offset by retirements prior to age 65,
resignations, and employees moving to positions in other parts of ICBC. The time required to
recruit for vacated positions has resulted in decreased actual FTEs.

27.     In 2005 and 2006 ISD has not been able to hire to forecast employee levels. ICBC has
experienced an increasingly tight labour market, and has found this to be particularly so for
Information Technology jobs. ISD will use contractors for short term project needs and when
necessary will place contractors into core jobs until full time replacements can be hired.

28.     ISD’s general expenses represent approximately 33% of ISD’s forecast 2007
expenditures. Within ISD, general expenses are comprised of expenditures on voice and data


Insurance Corporation of British Columbia                                                               7.6-8
March 16, 2007
                                        ICBC March 16, 2007 Filing with the BC Utilities Commission

networks, software licensing, hardware purchases and maintenance (all platforms), outside
processing services (for example Workplace Technology Services, which provides mainframe
computing resources supporting ICBC’s driver licensing services), professional services,
supplies and technical education.

29.        Changes in general expenses reflect both inflationary increases of vendor services
included within existing contracts, and periodic investments such as the need to replace non-
capital equipment at the end of its expected useful life or when no longer supported by the
vendor. As equipment ages it becomes more expensive to maintain and has an increased
likelihood of failure.

30.        General expense increases have been mitigated by negotiating favourable terms and
conditions as contracts expire. An example is Network BC, which was created to work with BC
communities and the private sector to bridge the digital divide in BC and put in place the next
generation data network for the provincial government and the broader public sector. Network
BC savings in 2006 were $550,000.

31.        Increases from 2005 actual to 2006 forecast operating expenses reflect planned
increases in investments to, for example, the telephone switching system (PBX), and the
replacement of an application code and report generator, as described below.

32.        Decreases from the 2006 forecast general expenses to the 2006 actual general
expenses were due to the following:

           •   Subsequent to the filing of the 2006 forecast to the Commission, ICBC realigned $2
               million of the ISD budget for enhanced customer service support at the Telephone
               Claims Department (TCD).5 This realignment was identified in the 2006 oral hearing.
               As a result of this change several planned investments were resourced by internal
               employees, rather than external resources as originally planned.

           •   Planned replacements of Application Development Facility (ADF), an application
               program code generator and Mark IV, a program used to generate reports, were
               initiated using internal resources instead of contractors as planned in the 2006
               forecast. In addition, the implementation approach was changed to be incremental

5
    Refer to Chapter 7.2 Operations for more information.

Insurance Corporation of British Columbia                                                     7.6-9
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

             (and less disruptive) by leveraging existing and potential future projects to make the
             changes. Original costing estimates assumed that significant re-engineering would
             be required for some of the components. The strategy has since been revised to
             incorporate only minimal re-engineering. As a result, work effort is being undertaken
             by existing staff without the need to augment with contractors. This resulted in a $2
             million reduction from the 2006 forecast.

        •    Since the 2006 forecast, renegotiated contracts resulted in savings of $1.2 million
             (e.g., Network BC, and software savings resulting from the replacement of the
             mainframe computers). Additionally, capital expenditures made in mid-2005, such
             as the mainframe replacement, resulted in 12 months of savings from the forecast
             because the new equipment was under warranty and so maintenance costs were not
             incurred.

        •    Other reductions from 2006 forecasted general expenses included a one-time
             investment to upgrade the PBX. Over the course of the year, the plan was changed
             and for the same cost ICBC signed a three year subscription service to upgrade the
             system as many times as needed, which resulted in the expense being spread over
             three years. In addition the replacement of printers will now begin in 2007. The plan
             is to transition to a reduced number of printers through the deployment of multi-
             function devices (combined printer/FAX/copiers). The costs associated with this
             initiative were moved from the 2006 ISD forecast to the 2007 Corporate project fund.
             In addition discounts have been received for pre-payment of multi-year contracts,
             such as Unix server maintenance.

33.     During 2006 increases in depreciation resulted from capital expenditure in corporate
projects, where upon completion, ISD reflected these costs as part of the divisional depreciation
expense. In 2007 a reduction occurs due to some IT assets being fully depreciated at the end
of 2006. ARIES tablets (portable computing devices used for automated estimating) and the
F15K Unix server replacement were fully depreciated in 2006.

34.     Depreciation expense represents 10% of ISD’s planned 2007 expenses. Depreciation
has a direct relationship to the level of capital technology expenditures made by ICBC. The ISD




Insurance Corporation of British Columbia                                                     7.6-10
March 16, 2007
                                       ICBC March 16, 2007 Filing with the BC Utilities Commission

budget is assigned technology depreciation costs on behalf of ICBC. For more information on
IT capital expenditure, and resulting depreciation, see Appendix 7.6 B – IT Capital Plan.

B.3        FUTURE SPENDING TRENDS
35.        Future spending trends in IT are influenced by factors including, but not limited to: the
need to re-engineer legacy application systems to meet changing business and regulatory
requirements, the increasing need to enhance the security and confidentiality of data, and the
need to maintain adequate service delivery in the event of unforeseen interruptions.

36.        Changes to Basic insurance rate design will present a major impact to ICBC’s
application systems. Multiple systems could be affected, and given the complexity of those
systems, months and possibly years of lead time will be required for ICBC to implement the
changes successfully.           The costs of these changes have been reflected in the associated
project lists, as well as the IT Capital Plan as appropriate.6

37.        The Freedom of Information and Protection of Privacy Act requires ICBC take
reasonable measures to ensure the security and protection of customer and employee
information.        Security threats continue to evolve with changes in technology, requiring
investment in security systems or other solutions that support security monitoring and
automation. All industries are likely to experience increased regulation of privacy and data
protection.

38.        ICBC is increasingly reliant on information technology to support its business. This is
reflected in the need for updates to the Disaster Recovery Plan to ensure that in the event of a
localized or general disaster, business disruption will be minimized.                The adoption of new
technology platforms requires increased hardware to be available for supporting applications,
thus increasing the cost of Disaster Recovery Plan solutions.

39.        Please refer to Appendix 7.6 A - IT Strategic Plan and Budget for more on Insurance
Industry IT trends.




6
    Refer to ICBC’s forthcoming 2007 Rate Design Application for more information.

Insurance Corporation of British Columbia                                                          7.6-11
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

C       INFORMATION SERVICES DIVISION BUSINESS AREAS
40.     ISD consists of three functional areas. These are organized using a Plan, Build, Run
model. These are the Planning, Architecture and Administration areas (Plan), the Information
Services Solutions Department (ISS) (Build) and the IT Infrastructure Department (Run) of the
Division. A description of the accountabilities of each business area, together with a description
of their operating expenses is presented below.

C.1     IS PLANNING, ARCHITECTURE AND ADMINISTRATION
41.     The Strategic Client Services Department is responsible for aligning IT with the business
areas. In addition the department is responsible for advising business areas of IT implications
with respect to Corporate strategic planning, for the establishment and negotiation of business
area IT service levels and for coordinating divisional business plans. The Strategic Client
Services Department is also responsible for the coordination of ICBC’s Corporate Business
Continuity Planning, for leading the development of divisional measurement and benchmarking,
and for leveraging external research services to provide strategic analysis and support for
business decisions. This department is also responsible for the development and delivery of
education and training programs for ISD employees and management and for providing general
administration services to ISD.

42.     The IT Architecture Department works within ISD and with ICBC’s business areas to
integrate strategic, tactical, business, and project planning. The IT Architecture Department is
also responsible for governance of Corporate Information Security. This includes administering
access to all corporate systems and information for all internal employees, government
ministries, and external business partners, including coordination and management of the
Corporate Security Incident Response Team (CSIRT). The department is also responsible for
developing and implementing information security policies and procedures in accordance with
corporate objectives, provincial statutes, industry standards and guidelines, and for developing
information security risk assessments for new systems and applications under development.

43.     The IS Planning and Budgeting Department manages and oversees the financial
planning, monitoring, and reporting of the IS Division. In addition, the department manages and
coordinates the divisional operational budget and forecasts, coordinates development of the IT




Insurance Corporation of British Columbia                                                   7.6-12
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

Capital Plan, oversees recovery, chargeback and transfer of IT costs to the appropriate division
or department, and monitors financial expenditures of ISD.

44.     The expenses and FTEs from 2005 to 2007 for IS Planning, Architecture and
Administration are shown in Figure 7.6.3.

Figure 7.6.3 IS Planning, Architecture and Administration Operating Expenses and FTEs

                                                             ($ millions)
                                               2005          2006            2006          2007
 Line
 No.             Description                  Actual     Forecast           Actual     Forecast
   1       Compensation                         $6.8          $7.3            $7.5          $8.3
   2       General Expenses                      1.8           2.1             1.9           2.2
           Total Operating
   4       Expenses                             $8.6          $9.4            $9.4         $10.5
           Full Time Equivalent
   5       Averages (FTEs)                       86            87              90             97




45.     The compensation increase from 2006 to 2007 is due in part to the general
compensation increases that are discussed in Chapter 7.1.

46.     For 2006, positions in corporate information security were added, employees returned
from temporary assignment outside the department, and a divisional co-op program was
started.

47.     In 2007, employees in these departments will be returning to work from long-term
disability leave (LTD), retired/resigned employee positions will be backfilled, a new position will
be added to the corporate information security department and employees will be returning from
temporary assignments outside the division.

C.2     IS SOLUTIONS
48.     Information Services Solutions (ISS) is responsible for designing and building new
systems, supporting and maintaining existing systems and evaluating and supporting purchased
packages. The department is responsible for functional enhancements to existing systems and
for all computer based business applications at ICBC. The department also includes ICBC’s
Corporate Data Warehouse application that provides the data for large scale reporting, trending,

Insurance Corporation of British Columbia                                                    7.6-13
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

and analysis. Also included within IS Solutions are the responsibilities for applications supported
by ICBC’s SAP system, which stores and supplies all corporate human resource and financial
data.

49.       The expenses and FTEs from 2005 to 2007 for IS Solutions are shown in Table 7.6.4
below.

Figure 7.6.4 IS Solutions Operating Expenses and FTEs

                                                              ($ millions)
 Line                                          2005        2006          2006         2007
 No.                Description               Actual     Forecast       Actual      Forecast


      1     Compensation                         $15.7        $17.3        $17.3         $18.1
      2     General Expenses                       0.8          3.2          1.1            1.2
      3     Depreciation                           0.4          0.1          1.0            1.0
            Total Operating
      4     Expenses                             $16.9        $20.6        $19.4         $20.3

            Full Time Equivalent
      5     Averages (FTEs)                        198          202          202           207


50.       The compensation increase from 2006 to 2007 is due in part to the general
compensation increases that are discussed in Chapter 7.1.

51.       The increase in compensation costs from 2005 actual to 2006 forecast was the result of
employees being transferred into IS Solutions from the Human Resources and Corporate Law
division at the end of 2005 (therefore not reflected in the 2005 actual). This change better aligns
support of the Human Resources component of ICBC’s SAP systems. Compensation costs also
increase from 2006 forecast to 2007 forecast as a result of the transfer of four employees from
IT Infrastructure to IS Solutions in support of call centre technology.

52.       General expenses in IS Solutions increased from 2005 actual to 2006 forecast due to
the costs of planning for the upgrade of SAP system software (planned in 2007).

53.       The decrease in general expenses from the 2006 forecast to the 2006 actual is a result
of changes in the approach to implement the replacement of ADF and Mark IV products with



Insurance Corporation of British Columbia                                                    7.6-14
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

external resources. During 2006, the implementation approach to this replacement changed to
become incremental, spread over a longer period of time, using internal resources.

54.      Capital investments in software infrastructure have resulted in depreciation expense
increases from 2005 actual to 2006 actual. The most significant contributor to this increase was
the development and subsequent implementation of the New Premium Finance Plan, which
began depreciating in mid-2005.

C.3      IT INFRASTRUCTURE
55.      The IT Infrastructure Department is responsible for the design, implementation,
optimization, and operation of all technology infrastructure, including overseeing the
implementation of items arising from the IT Capital Plan. This department also oversees the
infrastructure systems management processes, the systems change and problem management
process, and is involved in day to day tactical vendor management. IT Infrastructure is also
responsible for the acquisition, planning, and implementation of infrastructure related products
and service requests, such as computers, laptops, phones, voicemail, printers, and fax lines.
The Infrastructure Department contains ICBC’s IT Help Desk, which supports ISD’s internal and
external customers and provides problem resolution on the status of applications, operating
systems, and hardware. This department is also responsible for providing technical support
services to all ICBC locations and ICBC business partners, which includes Government Agent
(GA) and Appointed Agent (AA) offices.

56.      The expenses and FTEs from 2005 to 2007 for IT Infrastructure are shown in Figure
7.6.5.




Insurance Corporation of British Columbia                                                  7.6-15
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

Figure 7.6.5 IT Infrastructure Operating Expenses and FTEs


                                                             ($ millions)
                                               2005          2006            2006              2007
 Line
 No.            Description                   Actual     Forecast           Actual       Forecast
   1      Compensation                         $15.6         $16.9           $16.4             $16.3
   2      General Expenses                      22.4          27.0            21.4              21.1
   3      Depreciation                           7.0           7.0             7.5               6.7
          Total Operating
   4      Expenses                             $45.0        $50.9            $45.3             $44.1
          Full Time Equivalent
   5      Averages (FTEs)                       203           211              201              202




57.     The compensation increase from 2006 to 2007 is due in part to the general
compensation increases that are discussed in Chapter 7.1.

58.     In 2005 IT Infrastructure was unable to hire to budgeted levels due to an increasingly
competitive and tight labour market for Information Technology jobs. The 2006 forecast
projected a full complement of employees. The decrease in FTEs and compensation expense
from the 2006 forecast to the 2007 forecast was the result of positions being transferred into IS
Solutions (from IT Infrastructure) to better align support of technology at the call centre.

59.     The decrease in general expenses from the 2006 forecast to 2006 actual was the result
of renegotiated contracts, with resulting savings of $1.2 million (for example, Network BC, and
software savings resulting from the replacement of the mainframe computers). Additionally,
mid-2005 capital expenditures (for example, the mainframe replacement) resulted in 12 months
of savings from the forecast as the equipment was under warranty.

60.     The decrease in general expense from the 2006 forecast to 2006 actual was also the
result of ICBC signing a three year subscription service to upgrade PBX software as many times
as needed, rather than upgrading PBX as a one-time activity. This resulted in the cost being
spread over three years. Further analysis and re-prioritization of IT investments and associated
expenses subsequent to the 2006 forecast resulted in further deceases in operating expenses.




Insurance Corporation of British Columbia                                                        7.6-16
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

61.     Capital items (for example tablets for automated estimating and the F15K Unix server
replacement) acquired at the end of 2003 are fully depreciated resulting in a decreased
depreciation expenditure from 2006 actual to 2007 forecast.


D CONCLUSION
62.     In summary, the Information Services Division goal is to be an efficient and cost effective
provider of information technology services to ICBC. This is achieved through a process of
analysing and monitoring FTE and expense requirements, working with external suppliers to
achieve maximum benefit from ICBC’s contractual agreements, and working with ICBC’s
internal business partners to ensure their needs are being met in an efficient and affordable
manner. There is a requirement to invest in technology to meet ICBC’s ongoing business needs.
This is addressed through ICBC’s project, systems development, technology acquisition, and
decision making processes.

63.     ISD works on approved corporate projects including systems and technology
investments. These corporate processes are the responsibility of the ICBC Executive
Committee, thus ensuring investments are aligned with corporate priorities. Investment
requirements are assessed on an annual basis and monitored quarterly.

64.     The capital planning process considers what can be achieved within certain timeframes,
with available resources. Technology capital spending is prioritized quarterly, and adjusted
where appropriate. Acquisition of technology is reviewed and approved through an analysis of
alternative options.

65.     Adherence to these governance processes ensures that IT expenditures are at the
appropriate level, are well planned and managed, meet the needs of the business area and are
aligned with corporate strategy. It also provides a framework within which strategies can be
developed to maintain costs at an appropriate level.




Insurance Corporation of British Columbia                                                    7.6-17
March 16, 2007
                                APPENDIX 7.6 A

                         IT STRATEGIC PLAN




Insurance Corporation of British Columbia
March 16, 2007
                                            ICBC March 16, 2007 Filing with the BC Utilities Commission



                                           Table of Contents
A Introduction ................................................................................................................. 7.6.A-1
     A.1 IT Strategic Plan Planning Approach .................................................................... 7.6.A-2

B IT Strategic Plan .......................................................................................................... 7.6.A-3
     B.1 Technology and Systems Landscape ................................................................... 7.6.A-3
     B.2 Role of ISD ........................................................................................................... 7.6.A-4
     B.3 IT Principles .......................................................................................................... 7.6.A-5
     B.4 Insurance Industry IT Trends ................................................................................ 7.6.A-6
     B.5 Current Assessment and Strategic Outlook.......................................................... 7.6.A-8
          B.5.1 Systems .................................................................................................... 7.6.A-8
          B.5.2 Shared Technology ................................................................................... 7.6.A-9
     B.6 IT Portfolio Assessment and Planned Expenditures........................................... 7.6.A-10
          B.6.1 Insurance Portfolio .................................................................................. 7.6.A-12
                 B.6.1.1 Description ................................................................................ 7.6.A-12
                 B.6.1.2 Business Drivers ....................................................................... 7.6.A-12
                 B.6.1.3 Assessment .............................................................................. 7.6.A-12
                 B.6.1.4 Implications and Action ............................................................. 7.6.A-14
                 B.6.1.5 Planned Expenditures............................................................... 7.6.A-14
          B.6.2 Claims Portfolio ....................................................................................... 7.6.A-15
                 B.6.2.1 Description ................................................................................ 7.6.A-15
                 B.6.2.2 Business Drivers: ...................................................................... 7.6.A-15
                 B.6.2.3 Assessment .............................................................................. 7.6.A-16
                 B.6.2.4 Implications and Action ............................................................. 7.6.A-16
                 B.6.2.5 Planned Expenditures............................................................... 7.6.A-17
          B.6.3 Licensing Portfolio................................................................................... 7.6.A-18
                 B.6.3.1 Description ................................................................................ 7.6.A-18
                 B.6.3.2 Business Drivers ....................................................................... 7.6.A-18
                 B.6.3.3 Assessment .............................................................................. 7.6.A-19
                 B.6.3.4 Implications and Action ............................................................. 7.6.A-19
                 B.6.3.5 Planned Expenditure................................................................. 7.6.A-19
          B.6.4 Finance Portfolio ..................................................................................... 7.6.A-20
                 B.6.4.1 Description ................................................................................ 7.6.A-20
                 B.6.4.2 Business Drivers ....................................................................... 7.6.A-20
                 B.6.4.3 Assessment .............................................................................. 7.6.A-20
                 B.6.4.4 Implications and Action ............................................................. 7.6.A-21
                 B.6.4.5 Planned Expenditure................................................................. 7.6.A-21
          B.6.5 Human Resources Portfolio .................................................................... 7.6.A-22
                 B.6.5.1 Description ................................................................................ 7.6.A-22
                 B.6.5.2 Business Drivers ....................................................................... 7.6.A-22
                 B.6.5.3 Assessment .............................................................................. 7.6.A-22
                 B.6.5.4 Implications and Action ............................................................. 7.6.A-22
                 B.6.5.5 Planned Expenditure................................................................. 7.6.A-22
          B.6.6 Enterprise Technology Portfolio .............................................................. 7.6.A-23
                 B.6.6.1 Description ................................................................................ 7.6.A-23

Insurance Corporation of British Columbia                                                                                            7.6.A-i
March 16, 2007
                                           ICBC March 16, 2007 Filing with the BC Utilities Commission

                B.6.6.2 Business Drivers ....................................................................... 7.6.A-23
                B.6.6.3 Assessment .............................................................................. 7.6.A-23
                B.6.6.4 Implications and Action ............................................................. 7.6.A-28
                B.6.6.5 Planned Expenditure................................................................. 7.6.A-29
          B.6.7 Enterprise Information Portfolio............................................................... 7.6.A-30
                B.6.7.1 Description ................................................................................ 7.6.A-30
                B.6.7.2 Business Drivers ....................................................................... 7.6.A-30
                B.6.7.3 Assessment .............................................................................. 7.6.A-30
                B.6.7.4 Implications and Action ............................................................. 7.6.A-31
                B.6.7.5 Planned Expenditure................................................................. 7.6.A-31
          B.6.8 Enterprise Solutions Portfolio.................................................................. 7.6.A-32
                B.6.8.1 Description ................................................................................ 7.6.A-32
                B.6.8.2 Business Drivers ....................................................................... 7.6.A-32
                B.6.8.3 Assessment .............................................................................. 7.6.A-32
                B.6.8.4 Implications and Action ............................................................. 7.6.A-33
                B.6.8.5 Planned Expenditure................................................................. 7.6.A-33
          B.6.9 ISD Delivery Capability Portfolio ............................................................. 7.6.A-33
                B.6.9.1 Description ................................................................................ 7.6.A-33
                B.6.9.2 Business Drivers ....................................................................... 7.6.A-34
                B.6.9.3 Assessment .............................................................................. 7.6.A-34
                B.6.9.4 Implications and Action ............................................................. 7.6.A-35
                B.6.9.5 Planned Expenditure................................................................. 7.6.A-36
     B.7 Implementing the IT Strategic Plan - Resource and Budget Projections ............ 7.6.A-37
     B.8 Challenges and Risks ......................................................................................... 7.6.A-38
     B.9 Measuring the Success of the IT Strategic Plan ................................................. 7.6.A-39

C Conclusion................................................................................................................. 7.6.A-40




Insurance Corporation of British Columbia                                                                                         7.6.A-ii
March 16, 2007
                                       ICBC March 16, 2007 Filing with the BC Utilities Commission



                                        Table of Figures
Figure 7.6.A.1 Project Expenditure by Portfolio ............................................................... 7.6.A-11
Figure 7.6.A.2 Project Expenditure for the Insurance Portfolio........................................ 7.6.A-15
Figure 7.6.A.3 Project Expenditure for the Claims Portfolio............................................. 7.6.A-17
Figure 7.6.A.4 Project Expenditure for the Licensing Portfolio ........................................ 7.6.A-19
Figure 7.6.A.5 Project Expenditure for the Finance Portfolio........................................... 7.6.A-21
Figure 7.6.A.6 Project Expenditure for the Human Resources Portfolio.......................... 7.6.A-22
Figure 7.6.A.7 Project Expenditure for the Enterprise Technology Portfolio.................... 7.6.A-29
Figure 7.6.A.8 Project Expenditure for the Enterprise Information Portfolio .................... 7.6.A-32
Figure 7.6.A.9 Project Expenditure for the Enterprise Solutions Portfolio ....................... 7.6.A-33
Figure 7.6.A.10 Project Expenditure for the ISD Delivery Capability Portfolio ................. 7.6.A-36
Figure 7.6.A.11 Planned Investments – IT Strategic Plan ............................................... 7.6.A-37




Insurance Corporation of British Columbia                                                                            7.6.A-iii
March 16, 2007
                                        ICBC March 16, 2007 Filing with the BC Utilities Commission


A          INTRODUCTION

1.         In the July 2006 Decision the Commission identified Information Technology (IT)
strategic planning and budgeting as an area in which the Commission requests further
information:
                    The Commission Panel finds that the ICBC has not established a
                    long range strategic IT plan for the Corporation which sets the
                    overall   direction     in   terms     of    infrastructure   and   resource
                    requirements for IT activities over a three to five year period. An
                    enterprise     IT   strategic   plan        has   a   profound   impact   on
                    management decisions and rates as it is a key tool to ensure that
                    IT costs and resources are managed effectively and efficiently.
                    The Corporation acknowledges that it is working towards a
                    comprehensive enterprise strategic IT plan focusing on the
                    Business Strategies and where the business is going.


                    The Commission Panel expects to receive by the next revenue
                    requirements application, the enterprise strategic IT plan and
                    budgets which closely align with the long range needs of the
                    business and will enable the Corporation to achieve economies of
                    scale and appropriate allocation of IT resources.1

2.         The purpose of this IT Strategic Plan is to describe ICBC’s enterprise-wide IT plan,
based on ICBC’s strategic priorities over a rolling three year timeframe, which is aligned with the
planning horizon of ICBC’s Service Plan 2007-2009 (Appendix 11B). The IT Strategic Plan
defines IT expenditure priorities and expectations for a three year timeframe and guides
allocation of IT resources.

3.         The IT Strategic Plan was developed and will be maintained based on business direction
(strategies and priorities), technology trends, best practices for management of IT, and the need
to maintain the technology and systems already in place.



1
    July 2006 Decision, page 37.
Insurance Corporation of British Columbia                                                          7.6.A-1
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

4.      This version of the IT Strategic Plan is current as of February 2007. The content reflects
strategic planning at a corporate and an IT level. The technology aspects of the plan have a
more certain 3 year outlook than the systems aspects of the plan. ICBC will continue to develop
the IT Strategic Plan throughout 2007.

A.1     IT STRATEGIC PLAN PLANNING APPROACH

5.      This IT Strategic plan leverages the specific technology and systems strategies which
were developed through the Technology and Systems Planning (TSP) process through 2002 -
2005. The goals of the TSP are to prepare to meet future business needs (e.g., for a shared
technology that has a long lead time), and sustaining technical viability of the existing IT assets
(e.g., protection of the asset, cost effectiveness, responsiveness). through the development of
strategies and IT architectural plans which balance risk and value.

6.      The early 2000’s were a time of operational cost reduction at ICBC, and not a time of
major systems transformation. Therefore the majority of the TSP strategies developed relate to
shared technology infrastructure rather than business systems strategies.

7.      In 2006, ISD initiated development of a comprehensive IT Strategic Plan. In developing
ISD’s first comprehensive enterprise IT Strategic Plan, ISD adopted a portfolio-based approach
to structure the IT Strategic Plan, to ensure all aspects of technology and systems were
incorporated and to demonstrate alignment with business priorities.

8.      IT Portfolio Management is an increasingly mainstream IT industry management
approach. It provides the business and IT with the information and framework to set priorities
based upon the relative value and risk of alternative IT expenditures. IT Portfolio Management
also provides for ongoing monitoring and measurement of IT expenditures when linked to
project, technology and application performance monitoring – enabling decision makers to make
adjustments within the portfolio. ISD is in the early stages of adopting IT Portfolio Management.

9.      The scope of the undertaking to develop the IT Strategic Plan was large. Due to the TSP
work completed previously the technology aspects (e.g., computing platforms, networks,
eBusiness infrastructure) of the IT Strategic plan have, in general, greater certainty than the
systems (business applications) aspects. As a result the IT Strategic Plan presented here, while



Insurance Corporation of British Columbia                                                   7.6.A-2
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

comprehensive, is not evenly developed across all portfolios or within individual portfolios. The
IT Strategic Plan is a living ‘work-in-progress’.

10.     Starting in 2007, the IT Strategic Plan will be reviewed within ISD on a quarterly basis
and submitted for approval by the Executive Committee when important business or IT changes
have occurred.       Approval of the IT Strategic Plan does not, however, indicate approval of
expenditures for individual plan items.       Expenditures identified in the IT Strategic Plan are
subject to approval following established governance processes.

11.     The IT Strategic Plan, and the subsequent systems and technology strategies developed
through the TSP process, frequently propose capital expenditures, as well as specifying
technology life-expectancies. The IT Capital Plan and the IT Strategic Plan are coordinated,
through quarterly review sessions, to ensure alignment, e.g., with respect to priority, available
budget, and dependencies.

12.     In advance of undertaking a major IT expenditure, ICBC undertakes architectural
analysis, to guide acquisition and detailed design decisions, under the umbrella of Technology
and Systems Planning or through direct architecture participation in business sponsored
projects.


B       IT STRATEGIC PLAN

B.1     TECHNOLOGY AND SYSTEMS LANDSCAPE

13.     ICBC employs technology to enable cost effective and efficient business processes and
to support the delivery of services to our customers.

14.     ICBC operates a centralized computing facility out of its North Vancouver Head Office
and makes use of the provincial government shared computing facility, Workplace Technology
Services (WTS). The workload located at WTS is related to Driver Licensing.

15.     At its site in North Vancouver, ICBC houses mainframe and distributed computing
environments, storage facilities and centralized networking equipment. There are 2 mainframe
computers and approximately 445 distributed servers.




Insurance Corporation of British Columbia                                                   7.6.A-3
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

16.     ICBC operates a private data network that links ICBC sites across the province. Non-
ICBC locations, authorized to do so, connect to ICBC via public data networks.

17.     Six million business transactions are processed annually through ICBC’s primary
computing facility. ICBC processes in the range of 100 million system transactions on its
mainframes annually (one business transaction spawns multiple system transactions).
Approximately 50% of the transactions are related to claims systems. Another 25% - 30% of the
transactions are related to insurance systems. Most of ICBC’s core systems depend on the
mainframe.

18.     Among other workload, the distributed computing environment (non-mainframe)
supports ICBC’s implementation of SAP, the corporate data warehouse, call centre systems, the
Autoplan Extranet, ICBC’s intranet, and shared services for personal computer users.

19.     There are in excess of 600 named systems (business applications), including a large
proportion of custom developed, mainframe based, systems in production.

20.     SAP was introduced to ICBC in the late 1990’s. SAP is the primary platform for Finance,
Human Resources and Supply Management systems.

21.     ICBC provisions the workplace with personal computers (desktops, laptops and tablets)
running the Microsoft Windows operating system and Office productivity suite. There are
approximately 6,900 personal computers.

22.     ISD provides support for telephone systems at ICBC. There are approximately 5,500
telephones.

B.2     ROLE OF ISD

23.     ISD is a support division accountable for providing professional, cost effective services,
including shared infrastructure, to the business. While supporting the key corporate goals and
objectives, ISD has the key objective of being an efficient and cost effective provider of IT
services. ISD ensures this status through programs of continuous improvement, periodic
benchmarking and market assessments.




Insurance Corporation of British Columbia                                                   7.6.A-4
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

24.     ISD is accountable for providing strategic information technology leadership and the
technology services needed to meet ICBC's business requirements.

25.     Information systems and technology are integral to the day-to-day operation of virtually
every aspect of ICBC’s business (sale of insurance, management of claims, and issuing of
driver licenses) and supporting business processes (finance and human resources) and fulfills
workplace productivity and communication needs. Most business change involves some degree
of IT support.

B.3     IT PRINCIPLES

26.     The following IT principles guide ICBC’s decision-making, influencing, among other
actions, how the IT Strategic Plan is defined and how it will be implemented.

27.     ISD delivers solutions and services based on the following IT principles:

        •    Partnering to Deliver Business Focused Solutions:       ISD   provides    competitive
             service delivery in support of corporate objectives by partnering with the business to
             deliver innovative solutions. These include re-engineering of business processes
             before automation; delivering cost-effective solutions which balance effectiveness,
             sustainability, and risk; maximizing availability and reliability of data, systems and
             technology in support of the business requirements; and measuring ISD’s
             performance against Service Level Agreements.

        •    Corporate Objectives Drive Key Expenditure Decisions: ISD     considers   technology
             expenditures from a corporate perspective. This is accomplished through delivering
             IT change within a joint business and IT planning (architecture) framework; acquiring
             and integrating packaged applications solutions; and adopting technology based on
             internal and industry standards.

        •    Privacy and Security are Vital:    ISD ensures electronic access to information and
             services while maintaining privacy and security. This is accomplished through
             complying with established and documented security standards, service levels,
             auditing and legal requirements; protecting systems, data and technology from
             unauthorized access; ensuring the integrity and confidentiality of information; and
             providing recovery mechanisms.
Insurance Corporation of British Columbia                                                    7.6.A-5
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

        •    Information is a Strategic Resource:       ISD manages information as a strategic
             resource. This is accomplished through managing and using information to provide
             value for operational and strategic business decisions.

        •    People are Key:       ISD’s work force is a strategic resource. As a result, ISD ensures
             business needs are fulfilled by assigning appropriately trained staff to project teams
             and augmenting ISD’s core capacity through the use of external service providers
             when necessary; and attracting, selecting and retaining people with the knowledge,
             skills, abilities and values necessary to achieve ongoing corporate goals.

        •    Proven Solutions Adopted: ISD, on ICBC’s behalf, adopts proven solutions and is
             not an adopter of immature technology. ISD reviews research on insurance industry
             trends, technology trends and best practices for insight where technology
             expenditures are succeeding.

B.4     INSURANCE INDUSTRY IT TRENDS

28.     The following insurance industry IT trends were identified and contributed to the
development of ICBC’s IT Strategic Plan.

29.     The North American property and casualty (P&C) insurance industry went through
several years of losses due to higher than historical claims volumes and poor investment
returns. Since returning to profitability, increased IT expenditures have been observed in the
following areas:

        •    Claims management systems.

        •    Point of sales systems.

        •    Online transaction processing.

        •    Ease of transaction for agents and brokers.

        •    Electronic collaboration with suppliers and customers.

        •    Integrated sources of information on customer.


Insurance Corporation of British Columbia                                                      7.6.A-6
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

30.     A leading Information Technology research company has identified the insurance
industry as one of the last to undertake a migration of core legacy systems to new technologies.
‘Off the shelf’ insurance solutions, based on modern technologies and offering broad
functionality, have recently become available in recognition of the market potential.

31.     Insurers are challenged to meet their customers’ rising service expectations. Customers
compare their experiences with their insurer to their interactions with other organizations (e.g.,
online banking), not just other insurers. Furthermore, the high level of comfort most consumers
enjoy with their own use of technology leads to high expectations for ease of use, availability
and accessibility of the IT solutions insurers provide. In addition, due in part to an escalation in
the number of IT security threats (and a new awareness), customers are increasingly concerned
about personal privacy and information security. On the sales side, customers are increasingly
using the internet to gather information or quotes with respect to an insurance purchase but
demand to complete a purchase online continues to be very low.

32.     Insurers are exploiting means to transform internal business processes to provide self
serve access for both business partners and customers. In many cases, it is often the business
partners who directly interact with customers in the delivery of products or provision of services.
Where processes are currently manual, the trend is to establish electronic exchange of
information between organizations (e.g., using a secure web portal).

33.     A number of critical technologies are required to deliver modern and effective business
systems. Whether building custom applications or purchasing ‘off the shelf software’, the
following underlying technologies can be expected to be components of many solutions:

        •    The internet and standards based technologies (e.g., portals) – to provide easy to
             use, ubiquitous access to systems through the internet.

        •    Document/content management - the ability to store, retrieve, share and manage
             information regardless of its form (e.g., document, image, video).

        •    Mobile access (including wireless) – trend watchers report the potential that many
             people are or will soon be 30 seconds from the internet.

        •    Information security and privacy technologies for customers, employees, and
             suppliers.

Insurance Corporation of British Columbia                                                    7.6.A-7
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

        •    Workflow technologies – are used to more rapidly design, build, deploy, measure
             and modify automation of business processes, tying together the people and the
             systems to complete work. A business process example is: settling a claim to replace
             a vehicle’s windshield.

        •    Rules engines - for any IT system, the business rules change more frequently than
             the rest of the system. Rules engines are software components that separate the
             business rules (business rules describe the operations, definitions and constraints
             that apply to an organization, for example, authority levels) from the system code.
             This allows the business users to modify the rules as needed without involving IT
             and hence allow systems to be more responsive to changing business needs.

34.     These insurance industry technology trends are considered with respect to ICBC’s
systems and technology assessment in the following section.

B.5     CURRENT ASSESSMENT AND STRATEGIC OUTLOOK

B.5.1 SYSTEMS

35.     The majority of ICBC’s systems (business applications) are custom-built, based on
traditional mainframe technologies, and highly specialized for ICBC's business processes. In
keeping with ICBC’s IT principles, in recent years a greater portion of the business requirements
have been met through package acquisitions, including Enterprise Resource Management
(SAP), Material Damage Estimating (Audatex (formerly ADP) Penpro), and the shared call
centre solution (Genesys / Aria).

36.     Finance, Supply Management and Human Resources systems are based primarily on
SAP. Future business requirements for these areas in ICBC are expected to be satisfied largely
through continued evolution of the SAP environment.

37.     In support of ICBC’s integrated customer vision, the Insurance and Claims business
areas are collaborating to establish scope and priorities for business change. This work is
underway under the heading of the Insurance Servicing Direction and the Claims Servicing
Direction and is planned for completion in 2007. ISD is working with the divisions to describe the
systems and technology transformation implications of the business change. A long term
transformation plan for the resultant changes to the business, systems and technology will be

Insurance Corporation of British Columbia                                                   7.6.A-8
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

created with a more detailed short to medium term plan for the initial 12-18 months. Impacts of
the change will be significant across many aspects of the systems and technologies at ICBC.
ISD expects to begin work to transform the systems that support Insurance and Claims
business processes in 2008.

38.     ISD’s approach to the systems transformation will be based on industry best practices
for modern application delivery. A strong Service Oriented Architecture (SOA) approach will
underlie ISD’s strategy for systems transformation. SOA is a style of information systems
architecture that enables the delivery of applications that are created by combining
interoperable services (the capability of different programs to exchange data via a common set
of business procedures, and to read and write the same file formats and use the same
protocols). ICBC’s existing eBusiness infrastructure is an example of an interoperable service
as is the document / content management infrastructure being established in 2007. Where a
good functional and architectural fit is available, commercially available vertical (supporting a
specific business area or process rather than being applicable to a variety of purposes)
application software, e.g., Claims Management Systems, Policy Administration systems will be
preferred over custom development.

39.     Even though ISD will leverage packaged software in responding to the business change
requirements, introducing new systems and replacing old systems will be complex and present
significant challenges. Section B.8 of this document describes related challenges and risks, and
the strategies ICBC is adopting to meet the challenges and mitigate the risks.

40.     The IT expenditures over the past 5 years have included large (e.g., New Premium
Financing Plan) and medium project systems delivery and small systems changes (e.g., minor
enhancements).


B.5.2 SHARED TECHNOLOGY

41.     ISD has established and maintains strategies for computing platforms, storage,
networking (data and voice), IT security, personal computers and output devices. More
information with respect to these strategies has been provided in the Enterprise Technology
portfolio discussion in Section B.6.6 Enterprise Technology Portfolio.

42.     Where appropriate and practical, ICBC has migrated from proprietary (i.e., dependent on
a particular manufacturer or vendor) platforms and implemented products that align with
Insurance Corporation of British Columbia                                                  7.6.A-9
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

industry standards, such as the internet and standards based technologies. This provides a
greater flexibility and, in general, lowers the cost of acquisition due to commoditization (i.e.,
rendering a good or service widely available and interchangeable with one provided by another
company).

43.     ICBC has adopted many, but not all, of the underlying technologies described in the
Industry Trends section as shared infrastructure. Work is ongoing through to assess where
filling technology gaps will ensure ISD is ready to respond to business change requirements as
they arise. Specifically, ISD is currently leading work to select and implement a shared
infrastructure for document / content management services and associated workflow
technologies for managing unstructured content (e.g., paper based files, documents saved to a
shared drive, email) at ICBC. ISD is also working to establish a more extensive eBusiness
capability for ICBC. Both document / content management and eBusiness will position ISD to
more effectively respond to the upcoming systems transformation discussed above.

44.     As the Insurance and Claims systems transformation work progresses there may be
implications and consequences for other ICBC systems and technology. For example, much of
the Insurance and Claims systems are built in traditional mainframe development languages
and tools, such as PL/1 and IMS. Should a significant move away from those development
languages and tools occur that may drive change for other ICBC systems that are based on
those technologies. ISD is positioning to identify those consequences as part of the analysis in
2007.

45.     The IT expenditures over the past 5 years have included major technology renewal
expenditures (e.g., desktop evergreening), and introduction of shared infrastructure (e.g.,
eBusiness infrastructure). These expenditures were guided by strategies as described in the
Enterprise Technology portfolio in Section B.6.6 Enterprise Technology Portfolio.

B.6     IT PORTFOLIO ASSESSMENT AND PLANNED EXPENDITURES

46.     ISD’s portfolio management approach is designed to enhance IT governance and
technology expenditure planning and prioritization. Application systems, technologies, and in-
progress or planned projects have been grouped into one of nine portfolios. Six portfolios align
with ICBC’s business areas: Insurance, Claims, Licensing, Finance, HR, and Information
Services (ISD). The remaining three portfolios are comprised of items that support multiple

Insurance Corporation of British Columbia                                                  7.6.A-10
March 16, 2007
                                              ICBC March 16, 2007 Filing with the BC Utilities Commission

business areas (i.e., Enterprise Technology, Enterprise Information and Enterprise Solutions).
Consolidation of shared capabilities into the Enterprise portfolios supports ISD’s strategy for
common solutions that contribute to economies of scale and efficient use of resources. For
example, ICBC operates multiple call centres. All call centres, however, employ the same call
centre technology solution.

47.         In conjunction with ICBC’s continuous planning approach, the portfolios are reviewed
and plans revised in response to adjustments to ICBC’s business goals and strategies, and
advances in delivery techniques and commercially available solutions.

48.         Individual portfolio descriptions, business drivers, assessments, implications and action,
and identification of planned expenditures follow. Individual expenditures for business change or
renewal above $1 million total project, including expense and capital costs, are identified in the
summary tables at the end of each portfolio section. As a project moves forward, both the scope
and estimates of cost are refined to ensure that decisions are based on the best information
available at a point in time. Estimates for plan items that are in the early stages of analysis can
be expected to change as more is known. Estimates for plan items that are in a development or
implementation stage in the lifecycle are more certain.

49.         The following table provides a summary of planned expenditure, at a portfolio level, for
the 2007 – 2009 timeframe.2

Figure 7.6.A.1 Project Expenditure by Portfolio

                                                                 2007                    2008                   2009
    Line
    No.                         Description               Expense       Capital    Expense      Capital   Expense      Capital
      1    Insurance                                           7.8                      2.4                   1.5
      2    Claims                                              5.9                      1.2
      3    Licensing                                           2.1                      4.5
      4    Finance                                             1.8           0.1
      5    Human Resources                                     0.5
      7    Enterprise Technology                               5.2           4.4       13.7         6.5       6.0         11.5
      8    Enterprise Information                              2.3           0.9        1.3         0.8       2.0          0.8
      9    Enterprise Solutions                                4.8           0.1        0.8
      6    ISD Delivery Capability                             0.2           0.9        0.8         0.6
     10    Not Allocated                                       1.0                      1.8         0.5      17.1          0.5
     11    Estimated Net Project Refinements/Deferrals        (5.2)
                                                              26.4           6.4       26.5         8.4      26.6         12.8




2
    The table does not include costs expected in the Insurance and Claims portfolios in 2008 and 2009 as they have not
     yet been estimated.
Insurance Corporation of British Columbia                                                                              7.6.A-11
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

B.6.1 INSURANCE PORTFOLIO

B.6.1.1 DESCRIPTION

50.     The Insurance Portfolio includes the business systems (applications) that support the
insurance functional business areas: Underwriting, Broker Relations and Sales, and Strategic
Marketing.


B.6.1.2 BUSINESS DRIVERS

51.     The Insurance Division is working with the Operations Division to undertake a long term
program of business change, the Insurance Servicing Direction, in support of ICBC’s integrated
customer vision and to achieve customer satisfaction and revenue targets described in ICBC’s
Service Plan. Key elements of the Insurance Servicing Direction include strategies and tactics
to: develop and implement rate design change; develop and implement more flexibility in the
processes to introduce rate design change, develop and implement customer focused products
and services; ensure integrated customer experience at key customer touch points (e.g., at the
point of sale, web interaction and contact centres, claims handling, driver services); and ensure
effective management of ICBC’s relationship with brokers.

52.     Legislative and regulatory compliance requirements impact the Insurance Portfolio.
Depending on the specific circumstances the impacts can be significant. For example,
implementing changes to comply with Insurance (Motor Vehicle) Amendment Act, 2003 (Bill 93)
has been a large undertaking at ICBC involving business and systems changes.


B.6.1.3 ASSESSMENT

53.     ICBC has had an online data capture presence in brokers’ offices since the 1980’s, in
support of the insurance sales process, in order to provide a high level of customer service and
ease of access for brokers. Since the commercialization of the internet and related reduction in
the cost of providing access for brokers, other insurers have introduced web-based systems
access for Brokers. Today, ICBC’s online data capture systems are viewed as relatively
complex, rigid and difficult to learn and use.

54.     In the last number of years, the systems in the Insurance Portfolio have been
successfully extended, enhanced, web-enabled, and integrated with other systems to provide


Insurance Corporation of British Columbia                                                  7.6.A-12
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

improved functionality and user experience, and to eliminate reliance on proprietary network
technologies. Recently, ICBC successfully integrated the point of sale system (ADC) with
ICBC’s Collections and Disbursements system (SAP) to roll out the New Premium Financing
Plan. In another recent project, ICBC enhanced its Broker Extranet through the implementation
of an IBM product used to present the point of sale application in a modern Web user interface.

55.     The insurance systems are currently being modified to implement the business change
resulting from the introduction of Bill 93.

56.     Two short-term rate design changes identified in the 2007 Rate Design Application, Rate
Change 1 and Rate Change 2, are planned for implementation in 2008 and can be
accommodated in ICBC’s current systems.

57.     The longer-term rate design changes (2010 and beyond) identified in the Rate Design
Application have the potential to impact a hundred or more systems that cross several major
operational areas within ICBC. The interdependencies that exist between these systems would
require a disciplined approach to implementing the change, involving a synchronized set of
activities across several business units. These would include making the necessary systems
changes and testing under many different scenarios to ensure that the systems continue to work
as intended.

58.     A good example of this is the complexity of the Autoplan Data Capture system (ADC).
ADC is ICBC’s point of sale system and is a broker’s primary means of completing Basic
insurance transactions on behalf of ICBC. ADC is ICBC’s largest single IT system and contains
approximately 1000 modules and over a million lines of code.

59.     It may not be in the best interests of ICBC, the Autoplan Brokers, and ICBC’s customers
to continue to modify ICBC’s current point of sale (ADC) and related systems to meet the
business requirements of longer term rate design change, customer focus and integrated
experience across all key customer touch points. The business process as implemented in ADC
is vehicle-based and rigid, (i.e., business rules are imbedded in the system) making an
orientation to the customer technically challenging and costly. ADC and many of the related
applications originated over 25 years ago. Given the age of ADC and the potential size of the
expenditure to modify it to address the business requirements, replacing at least some
components of ADC and related systems may prove to be a more prudent approach.

Insurance Corporation of British Columbia                                                 7.6.A-13
March 16, 2007
                                     ICBC March 16, 2007 Filing with the BC Utilities Commission

B.6.1.4 IMPLICATIONS AND ACTION

60.     The systems in the Insurance Portfolio will provide the foundation for implementing rate
design proposals approved by the Commission in the 2007 – 2008 timeframe.

61.     The systems in the Insurance Portfolio will be transformed in support of the Insurance
Servicing Direction’s business goals and objectives, to improve responsiveness and flexibility,
and to modernize the technology upon which the systems run. This will be a multi-year effort
initiating in 2007. Scoping of future work, priorities, plans and estimates for work beyond 2007
are planned for completion in 2007. The requirement to improve the flexibility of rate design in
support of longer term rate design proposals is in the scope of work being addressed by the
Insurance Servicing Direction.

62.     ISD will leverage shared technology including the eBusiness and document / content
management infrastructures, and will assess commercially available Policy Administration
solutions to replace all, or portions of, ADC in support of the insurance systems transformation.

63.     As work on the systems transformation ramps up, ISD will continue to support the
existing applications as required to meet short-term business requirements.


B.6.1.5 PLANNED EXPENDITURES

64.     The expenditures planned in the Insurance Portfolio include legislated change (Bill 93),
short-term rate design change, long-term transformational change as a result of the Insurance
Servicing Direction and ICBC’s Corporate Strategy, and renewal of systems required in the
shorter term.

65.     The long-term systems impacts of the business led Insurance and Claims Servicing
Direction work is being assessed in 2007.

66.     In addition, expenditure is expected to continue to meet legislative and regulatory
requirements related to vehicle registration and the Basic insurance product.

67.     The following figure summarizes planned expenditures for the Insurance Portfolio in the
2007-2009 timeframe. The costs for Rate Change 1 are based on preliminary estimates as the
work is in the early stages of analysis. The costs for Rate Change 2 are being developed
through financial cost analysis currently underway and are indicated as “TBD”. The costs for

Insurance Corporation of British Columbia                                                   7.6.A-14
March 16, 2007
                                             ICBC March 16, 2007 Filing with the BC Utilities Commission

systems transformation related to the Insurance Servicing Direction beyond 2007 are
anticipated to be large and will take place over a number of years. Costs are currently unknown
and indicated as “TBD”.

Figure 7.6.A.2 Project Expenditure for the Insurance Portfolio