Major staff cuts are coming to the Insurance Corporation of British Columbia, CBC News has learned.

ICBC will announce Wednesday afternoon that it will cut staff by about 30 per cent over the next three years, sources within the corporation say.

Corporation officials don't deny that changes are coming to ICBC but denied that cuts will be as drastic as reported by CBC News.

The changes are part of a $200-million restructuring and streamlining plan called Transformation 2014.

The corporation, which handles most of B.C.'s car and driver insurance business, currently employs about 3,000 people and operates 38 claims centres across the province.

The cutbacks will be made up, in part, by an expansion of ICBC's dial-a-claim service which will see the insurance corporation handle more accident claims over the phone.

It will also expand the number of damage estimates done at private body shops, minimizing the need for ICBC-employed estimators.

The union representing many of the corporation's employees says the changes ICBC is making might do more harm than good.

"There's absolutely no good reason in the world ICBC has to treat people poorly at ICBC," said David Black of the Canadian Office and Professional Employees Union. "It's a very good system, it's working very well for British Columbians and it's important not to throw the baby out with the bathwater."

ICBC collects nearly $2 billion in insurance premiums annually.