You asked (1) how much money does Canada’s Insurance Corporation of British Columbia invest in highway improvements, (2) what is ICBC’s automobile insurance market share, (3) if other Canadian insurance companies make similar investments, and (4) if any American insurance companies make similar investments.

SUMMARY

Insurance Corporation of British Columbia (ICBC) invests about $ 10 million annually in road improvement projects, such as anti-skid road surface treatments, highly reflective traffic signs and road stripes, larger traffic signals, roundabouts, and other traffic calming measures.

ICBC has the entire basic auto insurance policy market in British Columbia, as it is the provincial-government’s mandated auto insurance carrier. Other insurance companies can compete for optional and excess coverage only.

Saskatchewan Government Insurance, doing business as SGI Canada, and Manitoba Public Insurance also contribute money to Canadian road safety programs. Like ICBC, they are government-mandated providers of compulsory auto insurance.

It is unclear whether many American insurance companies contribute money to road improvement and safety programs. But a review of on-line documents for five major carriers did not reveal any specific amounts expended for these causes. State Farm and GEICO, however, do appear to contribute money in certain instances, such as for community safety projects undertaken by government entities and others.

INSURANCE CORPORATION OF BRITISH COLUMBIA

ICBC, one of Canada’s largest property and casualty insurance companies, is British Columbia’s mandated automobile insurance provider. The provincial government created the company in 1973 to be the sole provider of basic auto insurance to British Columbia motorists, who are required to carry insurance. Private insurance companies can compete with ICBC with respect to extended third-party liability coverage and optional insurance coverage only.

In 1996, ICBC merged with the province’s motor vehicle department, taking over responsibility for vehicle registrations, driver license issuance and record maintenance, fine collection, road safety programs, and commercial vehicle compliance. In 2003, commercial vehicle compliance transferred back to the government. When a person registers a car with ICBC, they purchase the required basic auto insurance at the same time.

ICBC’S ROAD IMPROVEMENT PROGRAM

ICBC invests auto insurance premiums received from British Columbia’s motorists in road improvement projects to make roads safer. It will only invest in an improvement project that is expected to save $ 3 for every $ 1 invested in the first two years. It monitors crash data at the road improvement sites to make sure the improvements make a positive difference.

ICBC invested approximately $ 10 million in road improvement projects in both 2002 and 2003. (Its 2004 annual report is not yet available on-line. ) Typically ICBC funds only part of improvement projects, with municipalities or the province’s Ministry of Transportation funding the remainder.

Road improvement initiatives have included anti-skid road surface treatments, highly reflective traffic signs and road stripes, larger traffic signals, roundabouts, and other traffic calming measures. For more information about ICBC, go to http: //www. icbc. bc. ca.

OTHER CANADIAN INSURANCE COMPANIES

Other Canadian insurance companies that seem to contribute money to road safety programs are also government-mandated providers of compulsory auto insurance. These include Saskatchewan Government Insurance, operating as SGI Canada, and Manitoba Public Insurance. Similar to ICBC, these companies are the sole provider of the required basic minimum auto insurance coverage in their respective provinces. Private insurers compete for optional and excess coverage only.

SGI Canada targets about 2% of premium annually for traffic safety initiatives. It spent $ 9. 5 million on such projects in 2004, $ 9. 1 million in 2003, and $ 9. 7 million in 2002. It determines which initiatives to focus on based on traffic statistics. Most fit into five areas: (1) drinking and driving, (2) new drivers, (3) seat belt use, (4) high-risk drivers, and (5) intersection safety. For more information about SGI Canada, go to http: //www. sgi. sk. ca.

Manitoba Public Insurance spent about $ 7. 4 million on road safety education programs in 2003. (Its 2004 annual report is not yet available. ) For more information about the company, go to http: //www. mpi. mb. ca.

AMERICAN INSURANCE COMPANIES

We reviewed the annual statements and company profiles of five American insurance companies on-line: Progressive, State Farm, GEICO, MetLife, and Travelers. None of these documents indicate any specific amounts that these companies may contribute to road improvement or safety projects. State Farm’s and GEICO’s Web sites, however, provided some insight into their involvement with such concerns.

State Farm’s website indicates that it directs some company grants and charitable donations to improving driver, vehicle, and roadway safety under its Safe Neighbors program. Those eligible to receive funding include (1) non-profit, tax-exempt organizations under Section 501(c)(3) of the U. S. Internal Revenue Code, (2) educational institutions, and (3) governmental entities. Information on requesting grants from State Farm is found at http: //www. statefarm. com/foundati/cogrants. htm.

GEICO’s website indicates that it works with national and local organizations to promote efforts to improve highway safety and reduce traffic deaths and injuries (http: //www. geico. com/about/background/community. htm).

JLK: ts