lnsurance Corporation of British Colum bia March,00 W. Esplanade, Ste. 0 North Vancouver BC VM H Phone: (0) -00 regaffairs@ex.icbc.com B- British Columbia Utilities Commission Sixth Floor 00 Howe Street Vancouver, B.C. VZ N Attention: Robert J. Pellatt. Commission Secretary Dear Mr. Pellatt: Re: Proiect No. - ICBC's Witness Panels and Direct Testimonv At the Commission's oral hearing for ICBC's 00 Revenue Requirement Application, ICBC will be putting forward witness panels in the following order. Actuarial lnformation and Basic lnsurance Capital Management Plan This panel will speak to Chapter (Executive Summary), Chapter (Introduction), Chapter (Management Decision on Basic lnsurance Rates), Chapter (Actuarial Rate Level Indication Analysis), Chapter. (Basic lnsurance Capital Management Plan), Chapter. (Eckler Report) and Chapter (Supporting Evidence on ICBC's Proposed Increase of Basic lnsurance Rates) of ICBC's filing. The witnesses for this panel will be Ms. Prior, Chief Financial Officer; Mr. Chaudhry, Corporate Controller; Ms. Minogue, Chief Actuary; and Mr. Weiland, with Eckler Partners Ltd, who is ICBC's external actuary. Operations, lnformation Services, and lnsurance (including Alternatives to Broker Distribution) This panel will speak to the divisional overviews for Operations (Sections.), Insurance, Marketing and Underwriting (Section.), lnformation Services Division (Section.), as well as Chapter (Alternatives to Broker Distribution), the parts of Chapter (Performance Measures) that relate to claims measures and insurance services satisfaction, Section 0. as it relates to claims services allocations and insurance, and Section 0. (Road Safety Definition and Allocation of Auto Crime Prevention Costs) as it relates to the definition of Road Safety. The witnesses for this panel will be Mr. Withenshaw, Vice- President Loss Management and Operations Support; Mr. Stewart, Vice-President, lnformation Services Division; Mr. Downing, Vice-President, Customer Service; Operations, Mr. Tyller, Director, Bodily Injury Strategies; and Mr. Dickinson, Director, Provincial Broker Management.
Corporate Financial Information, Finance Division, Human Resources & Corporate Law This panel will speak to Appendix A to January, 00 Revised Application; Financial Governance (Section.), the divisional overviews for Finance (Section.), and Human Resources & Corporate Law (Section.) as well as Corporate Costs (Section.) and specific a,llocations and reconciliation as discussed in Sections. (Reconciliation and Updated Allocator Percentages), Sections 0. through 0. on allocation, except as it relates to the definition of Road Safety in Section 0.. This panel will also speak to Compensation and Performance Management (Chapter ) and Performance Measures (Chapter ) and specifically the remaining measures not dealt with by the previous panel, and Investment Governance (Chapter ). The witnesses for this panel will be Mr. Chaudhry, Corporate Controller; Mr. Len Posyniak, Vice-President, Human Resources and Corporate Law; Ms. Wong, Manager, Corporate Planning and Analysis; and Ms. Gould, Director Investments. The direct testimony for the above witnesses is attached Yours tr~~ly, Donnie Wing, CA Senior Vice President, Insurance, Marketing and Underwriting cc: Registered Intervenors Enclosures ( )
DIRECT TESTIMONY OF GERI PRIOR 0 0 Q. Please state your name and present position. A. My name is Geri Prior. I hold the position of Chief Financial Officer. Q. How long have you held that position? A. For approximately five years. Q. What were your previous positions with ICBC? A. I previously have held the positions of Assistant Vice-President, Operations Change Management and Support, Project Manager, Cost Containment Project and Manager, Claims Planning and Change Management in addition to other roles in ICBC s internal audit department. Q. What positions did you hold prior to joining ICBC and with whom? A. I held audit positions with the accounting firm Touche Ross & Co. Q. What are your professional qualifications? A. I have a Bachelor of Commerce degree from the University of British Columbia and I am a Chartered Accountant registered with the Canadian Institute of Chartered Accountants. Q. Have you previously testified before this Commission? A. Yes Q. What role did you play in the development of this Filing? I was involved in the preparation of Chapters (Executive Summary), (Introduction) and (Management Decision on Basic Insurance Rates) and Chapter (Supporting Evidence on ICBC s Proposed Increase of Basic Insurance Rates) of ICBC s Filing. I had oversight on Chapter. (Basic Insurance Capital Management Plan), and Sections. (Introduction and Financial Governance),. (Finance),. (Corporate Costs) and Chapter (Investment Governance) of ICBC s Filing. Q. What sections of the Filing will you be speaking to in the Commission hearing? Insurance Corporation of British Columbia Page of March 00
A. I will be speaking to Chapter (Executive Summary), Chapter (Introduction), Chapter (Management Decision on Basic Insurance Rates), Chapter. (Basic Insurance Capital Management Plan) from a management perspective, and to the management response in Chapter (Supporting Evidence on ICBC s Proposed Increase of Basic Insurance Rates). Q. Does this complete your direct testimony? A. Yes 0 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF ANWAR CHAUDHRY 0 0 Q. Please state your name and present position. A. My name is Anwar Chaudhry. I hold the position of Corporate Controller of ICBC. Q. How long have you held that position? A. For approximately eight and one-half years. Q. What were your previous positions with ICBC? A. I previously have held the positions of Manager, Internal Audit and Manager, Corporate Accounting. Q. What positions did you hold prior to joining ICBC and with whom? A. I was Controller Finance and Administration with Pacific National Exhibition; Financial Accounting Manager with Wilkinson Steel-Metals in Vancouver and Senior Audit Manager with KPMG Peat Marwick Thorne in Vancouver. Q. What are your professional qualifications? A. I am a Chartered Accountant with the BC Institute of Chartered Accountants. Q. Have you previously testified before this Commission? A. Yes Q. What role did you play in the development of this Filing? A. I either directly prepared or reviewed and approved the material presented in the sections of this filing described in the answer to question eight of this testimony. Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to the following: Appendix A to January, 00 Revised Application, Chapter (Executive Summary), Chapter (Introduction), Chapter (Management Decision on Basic Insurance Rates), and parts of Chapter (Performance Measures). I will also be speaking to the following sections of the application: parts of Section. (Introduction and Financial Governance), Section. (Finance), parts of Section. Insurance Corporation of British Columbia Page of March 00
0 (Corporate Costs), Section. (Reconciliation and Updated Allocator Percentages), Section 0. (Further Information on Selected Financial Allocation Functions Used in ICBC s Financial Allocation Methodology), Section 0. (Road Safety Definition and Allocation of Auto Crime Prevention Costs) except as it relates to the definition of Road Safety, Section 0. (Allocation of Corporate Projects), Section 0. (Summary of Impact of Allocations) and to the management response as it relates to the Finance Division in Chapter (Supporting Evidence on ICBC s Proposed Increase of Basic Insurance Rates). Q. Does this complete your direct testimony? A. Yes 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF CAMILLE MINOGUE 0 0 Q. Please state your name and present position. A. My name is Camille Minogue. I hold the position of Chief Actuary. Q. How long have you held that position? A. For one year. Q. Did you hold previous positions with ICBC? A. No. Q. What positions did you hold prior to joining ICBC and with whom? A. Prior to joining ICBC I held the position of Vice President and Chief Actuary at the Mattei Companies from 00 to 00. I began my actuarial career in and in November 000 was named Assistant Vice President, at which time I was responsible for rate making for all casualty lines in SAFECO Commercial Enterprise. Q. What are your professional qualifications? B. I have a PhD Mathematics from Washington State University (). I am a Fellow of the Casualty Actuarial Society, since. On March, 00, I assumed the position of President of the Casualty Actuaries of the Northwest. Q. Have you previously testified before this Commission? A. No. Q. What role did you play in the development of this Filing? A. As Chief Actuary I was responsible for the preparation for Chapter (Actuarial Rate Level Indication Analysis) and Chapter. (Basic Insurance Capital Management Plan) and the information pertaining to actuarial analysis in Chapter (Supporting Evidence on ICBC s Proposed Increase of Basic Insurance Rates). Q. What sections of the Filing will you be speaking to in the Commission hearing? Insurance Corporation of British Columbia Page of March 00
A. I will be speaking to Chapters and. and the information pertaining to actuarial analysis in Chapter. Q. Does this complete your direct testimony? A. Yes. 0 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF WILLIAM T. WEILAND 0 0 Q. Please state your name and present position. A. My name is William T. Weiland. I hold the position of Consulting Actuary with Eckler Partners Ltd. I am an officer of the company holding the position of President. Q. How long have you held that position? A. I have been a Consulting Actuary at Eckler Partners Ltd. since and its President since 000. Q. How long have you been ICBC s external actuary? A. Since. Q. What positions did you hold prior to joining Eckler Partners Ltd. and with whom? A. From to, I held the position of Consulting Actuary at MLH&A Inc. From to, I held various positions from Actuarial Analyst to Associate Actuary to Director of Corporate Planning with Travelers Canada, a large property and casualty insurer in Canada until its sale in the late 0 s. Q. What are your professional qualifications? A. I am a Fellow of the Canadian Institute of Actuaries () and Fellow of the Casualty Actuarial Society (). Q. Have you previously testified before this Commission? A. Yes. Q. What role did you play in the development of this Filing? A. I was directly involved in the preparation of Chapter. (Eckler Report). I also contributed to the preparation of Chapter. (Basic Insurance Capital Management Plan). I have reviewed Chapter (Actuarial Rate Level Indication Analysis) of the August 00 Filing and the October 00 Filing. I reviewed Chapter (Supporting Evidence on Insurance Corporation of British Columbia Page of March 00
ICBC s Proposed Increase of Basic Insurance Rates) and also contributed to the development of the actuarial portion of the appendices to Chapter. Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to Chapter, Chapter., Chapter., and information pertaining to the actuarial analysis in Chapter. Q. Does this complete your direct testimony? A. Yes. 0 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF MARK WITHENSHAW 0 0 Q. Please state your name and present position. A. My name is Mark Withenshaw. I hold the position of Vice President, Loss Management and Operations Support. Q. How long have you held that position? A. For approximately three years. Q. What were your previous positions with ICBC? A. I previously have held the positions of Assistant Vice-President, Loss Management and Operations Support; Senior Manager, Operations Support; Senior Manager, Material Damage; Senior Manager, Fraud Prevention and Investigations; Manager, Special Investigations Unit; Claim Centre Manager; Claims Manager; and Adjuster. Q. What are your professional qualifications? A. I have a Business Administration Certificate from the British Columbia Institute of Technology and a Certificate in Leadership Learning from Simon Fraser University. Q. Have you previously testified before this Commission? A. Yes. Q. What role did you play in the development of this Filing? A. I participated in the development of Section. (Operations) of the Application, Chapter (Performance Measures) of the Application as it relates to claims measures and Section 0. (Road Safety Definition and Allocation of Auto Crime Prevention Costs) as it relates to the definition of Road Safety. Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to Section., Section 0. as it relates to Claims Services allocations and to Section 0. as it relates to the definition of Road Safety. Q. Does this complete your direct testimony? Insurance Corporation of British Columbia Page of March 00
A. Yes. 0 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF KEITH STEWART 0 0 Q. Please state your name and present position. A. My name is Keith Stewart. I hold the position of Vice-President, Information Services Division. Q. How long have you held that position? A. For approximately years. Q. What were your previous positions with ICBC? A. I have previously held the positions of: Manager, Information Security; Manager, Decision Support Services; Manager, Network Design; Manager, Operational Effectiveness; Manager, Customer Contact; Manager, ICBC/MVB Merger; and Vice -President Operations, Vancouver Island Q. What positions did you hold prior to joining ICBC and with whom? A. Strategic Planning Analyst at Canadian Airlines Q. What are your professional qualifications? A. Operations Management Diploma of Technology, BCIT Management of Advanced Technology Certificate, SFU Q. Have you previously testified before this Commission? A. No Q. What role did you play in the development of this Filing? A. As the Vice-President of Information Services, I was responsible and participated in the preparation of Section. (Information Services Division). Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to the corporation s application of technology in support of business processes and specifically to Section.. Q. Does this complete your direct testimony? Insurance Corporation of British Columbia Page of March 00
A. Yes 0 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF DOUGLAS DOWNING 0 0 Q. Please state your name and present position. A. My name is Douglas Downing. I hold the position of Vice President, Customer Service. Q. How long have you held that position? A. For approximately three years. Q. What were your previous positions with ICBC? A. I previously have held the positions of Vice President, Customer Care; Vice President, Customer Access; Assistant Vice-President, Call Centre Services; Manager, Telephone Claims Department; Manager, Claims Operations for Vancouver Island; Manager, Claims Operations for the Northern Interior; Manager, Main Street Claim Centre; Manager, Campbell River Claim Centre; Manager, Fort St. John Claim Centre; Claims Manager, Westwood Bodily Injury Centre; and Adjuster. Q. Have you previously testified before this Commission? A. No. Q. What role did you play in the development of this Filing? A. I participated in the development of Section. (Operations) in the Application and Chapter (Performance Measures) in the Application as it relates to claims-related service measures. Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to Section. as it relates to customer service levels and call centres, and to Chapter as it relates to claims-related service measures (but excluding legal representation rates which will be addressed by Mr. Gerry Tyller). Q. Are there any revisions or corrections to be made to the material filed as part of Chapter with respect to the claims-related performance measures? Insurance Corporation of British Columbia Page of March 00
0 A. Yes. In section B of Chapter, ICBC reports on the new claims initiation measure, which represents the percentage of incoming telephone claims department (TCD) calls that are answered within a specified threshold. In the May 00 Negotiated Settlement Process, ICBC agreed to report on new claims initiation using 0 second and 0 second thresholds. Since then, ICBC has reviewed its service levels at TCD, and considered options for improving overall customer satisfaction. In light of the nature and complexity of calls handled at TCD, ICBC has selected a new business service level target of 0/00, or 0% of calls answered within 00 seconds. In order to meet this service level target, ICBC must implement staffing level changes and provide further training. These changes and training are expected to be completed for a June, 00 implementation. ICBC anticipates that it will make an application to the Commission after the implementation of the 0/00 new claims initiation to replace the existing new claim initiation measures with the 0/00 measure. Q. Does this complete your direct testimony? A. Yes. 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF GERRY TYLLER 0 0 Q. Please state your name and present position. A. My name is Gerry Tyller. I hold the position of Director, Bodily Injury Strategies. Q. How long have you held that position? A. For approximately five months. Q. What were your previous positions with ICBC? A. I previously have held the positions of Regional Field Services Manager; Claim Centre Manager; Bodily Injury Learning Centre Manager; Brand Manager; Bodily Injury Project Manager; Bodily Injury Regional Manager; Claims Manager; Bodily Injury Adjuster and Claims Adjuster. Q. What are your professional qualifications? A. I have a Bachelor of Arts degree and am a Certified Insurance Professional. Q. Have you previously testified before this Commission? A. No. Q. What role did you play in the development of this Filing? A. I assisted with the development of Chapter (Performance Measures) of the Application as it relates to bodily injury claims issues. Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to Section. and Chapter as they relate to bodily injury claims issues and to Chapter as it relates to legal representation rates and injury paid severity. Q. Does this complete your direct testimony? A. Yes. Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF JOHN DICKINSON 0 0 Q. Please state your name and present position. A. My name is John Dickinson. I hold the position of Director, Provincial Broker Management. Q. How long have you held that position? A. For approximately two and one-half years. Q. What were your previous positions with ICBC? A. I previously have held the positions of Manager, Autoplan Provincial Program & Sales; Claims Manager; Bodily Injury Adjuster; and Claims Adjuster. Q. What are your professional qualifications? A. Fellow Chartered Insurance Professional Q. Have you previously testified before this Commission? A. No. Q. What role did you play in the development of this Filing? A. I was responsible for the preparation of the chapter on Alternatives to Broker Distribution (Chapter ), and participated in the preparation of Section. regarding the Insurance, Marketing and Underwriting Division. Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to Chapter (Alternatives to Broker Distribution) and to Section. (Insurance, Marketing and Underwriting), to the management response as it relates to the Insurance Division in Chapter (Supporting Evidence on ICBC s Proposed Increase of Basic Insurance Rates) and performance measures and allocations as they relate to the Insurance Division. Q. Does this complete your direct testimony? A. Yes. Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF LEN POSYNIAK 0 0 Q. Please state your name and present position. A. My name is Len Posyniak. I hold the position of Vice-President, Human Resources and Corporate Law. Q. How long have you held that position? A. Since I joined ICBC on January, 00. Q. What positions did you hold prior to joining ICBC and with whom? A. I was Executive Vice-President Human Resources for Accenture Business Services for Utilities; Vice-President Human Resources for Saskatchewan Wheat Pool; and General Manager Human Resources for City of Surrey. Q. What are your professional qualifications? A. I have a Bachelor of Administration, University of Regina, and a Master of Business Administration, University of Saskatchewan, and am a Certified HR Professional (CHRP). Q. Have you previously testified before this Commission? A. No. Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to Section. on Human Resources and Corporate Law information. I will also be speaking to Chapter on Compensation and Performance Management. Q. Does this complete your direct testimony? A. Yes. Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF KATHLEEN WONG 0 0 Q. Please state your name and present position. A. My name is Kathleen Wong. I hold the position of Manager, Corporate Planning and Analysis. Q. How long have you held that position? A. For almost two years. Q. What were your previous positions with ICBC? A. I previously have held the positions of Manager, Strategic Management Services, Manager, Priority Issues and Manager, Internal Audit. Q. What positions did you hold prior to joining ICBC and with whom? A. Prior to joining ICBC, I was a senior audit staff member with a major accounting firm. Q. What are your professional qualifications? A. I am a Chartered Accountant with the BC Institute of Chartered Accountants. Q. Have you previously testified before this Commission? A. No. Q. What role did you play in the development of this Filing? A. As Manager, Corporate Planning and Analysis I was responsible for the preparation of Section. (Introduction and Financial Governance), Section. (Corporate Costs), and Chapter (Performance Measures). Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will speaking to: Section. (Introduction and Financial Governance); parts of Section. (Corporate Costs); Section. (Reconciliation and Updated Allocator Percentages); Section 0. (Allocation of Corporate Projects); and Chapter (Performance Measures) with the exception of those measures related to the Operations and Insurance Divisions. Q. Does this complete your direct testimony? Insurance Corporation of British Columbia Page of March 00
A. Yes. 0 0 Insurance Corporation of British Columbia Page of March 00
DIRECT TESTIMONY OF ALISON GOULD 0 0 Q. Please state your name and present position. A. My name is Alison Gould. I hold the position of Director Investments. Q. How long have you held that position? A. For approximately three years. Q. What were your previous positions with ICBC? A. I previously have held the positions of Manager Investments, Manager Money Markets and Derivatives, and Investment Operations Analyst. Q. What positions did you hold prior to joining ICBC and with whom? A. I was Budget Manager and Treasury Analyst with Finning Ltd. Q. What are your professional qualifications? A. I hold a Master of Business Administration degree from the University of British Columbia. Q. Have you previously testified before this Commission? A. No. Q. What role did you play in the development of this Filing? A. As Director Investments, I was responsible for the preparation of Chapter (Investment Governance). Q. What sections of the Filing will you be speaking to in the Commission hearing? A. I will be speaking to Chapter (Investment Governance). Q. Does this complete your direct testimony? A. Yes. Insurance Corporation of British Columbia Page of March 00