Skip to content Skip to main navigation

News

Skilled legal advice with
accessible & personal attention

New CTP providers for Canberra!

By johnboy - 19 June 2013 40

Barr

Katy Gallagher and Andrew Barr have the long awaited news that three new players are entering the Compulsory Third Party insurance market in the ACT:

Three insurers: AAMI, GIO and Apia (the Australian Pensioners Insurance Agency) have been granted licences to offer CTP insurance to ACT motorists. The licences will become effective on 1 July 2013. There is currently only one provider of CTP in the ACT.

“Today’s announcement is great news for Canberra motorists,” Treasurer Andrew Barr said. “Competition in our CTP market will bring the obvious benefit of choice.

“Competition also offers greater opportunities for innovative insurance products, more investment and employment in the ACT, and new thinking about how people injured in a motor vehicle accident might be rehabilitated and returned to health.

“We have had a single insurer in the ACT for more than three decades, and it is great for Canberrans to finally have greater product choice.


UPDATE: The Canberra Liberals’ Brendan Smyth has expressed his pleasure and says this means he was right.


Further update: The Law Society is also very happy:

The Society welcomes the news that there will be three more CTP insurers in the ACT market.

The government is to be congratulated on the success of their 2008 reforms in making CTP insurance in the ACT profitable for insurers while maintaining a reasonable level of benefits for innocent victims of motor vehicle accidents.

A senior ACT Treasury official recently informed a legal seminar that the estimated average cost of claims following the 2008 reforms fell from a forecast $157,371 in 2012 to an actual cost of $36,689.

These raw figures indicate a much larger profit than was expected when premiums were set.

We expect that this has been a factor in attracting the new insurers to the ACT market.

The extra competition may well result in lower premiums and the funding of a no-fault catastrophic care scheme.

What’s Your opinion?


Post a comment
Please login to post your comments, or connect with
40 Responses to
New CTP providers for Canberra!
Skidbladnir 7:27 pm 19 Jun 13

I find it rude that the Law Society are even providing comment, let alone praising this outcome.

Their members are simultaneously the cause of the problem and major future beneficiary, at the expense of my back pocket.

( Good lawyers learn to manipulate the legal system, great lawyers manipulate lawmakers)

c_c™ 6:50 pm 19 Jun 13

curlylocks said :

So does this mean it will be cheaper to register your car???? Or are their different “types” of CTP depending on who you go with???????

I am assuming it will not be any cheaper at all. ho hum

Well let’s consider this, I ran two fictional scenarios through NRMA (the present incumbent in the ACT), one a best case scenario, the other a more challenging one, both with a very vanilla vehicle…

NSW – NRMA CTP Greenslip

Scenario 1: Youngest driver 40yrs old, 2007 Toyota Camry Altise, Comprehensive Insurance with 65% NCB = $435/yr

Scenario 2: Youngest driver 21, 2007 Camry Altise, No insurance, record of at-fault accidents in past two years = $579/yr

Proof is in the numbers, this move will potentially make CTP cheaper. In a competitive market, the two providers will be in competition and they will be able to customise their covers more compared to the current, one size fits all approach. The GIO rep at the presser today even indicated they will have three grades of cover depending on the quality of the driving record of the registered users.

cranky 5:59 pm 19 Jun 13

This is simply window dressing. As has been pointed out, all these insurers are owned by the one company, so the chance of competition to attract business is minimal.

The way to reduce premiums is to remove the lawyers picnic that is the current scheme. Obscene dollars go into ambulance chasing legal pockets as cases are argued in court. Other jurisdictions have little dificulty in applying a formula to injury/compensation payouts, resulting in vastly lower premiums required to pay for the schemes.

Make no mistake, with the aid of Smyth, the local third party lawyers are making a fortune at the motorists expense. We should be asking why Barr has not pursued changing the system to reduce the legal meddling that currently exists.The fact that the Law Society are very happy about this development is indicative of the increased profits forseen.

The cosiness between local assembly members and the legal fraternity is such that the ACT motorist is only a bit player in the TPI scheme.

Duffbowl 5:47 pm 19 Jun 13

So, Suncorp signed up. That’s two true competitors…

johnboy 5:40 pm 19 Jun 13

For a compulsory insurance with tightly defined cover price is the only way to compete. we”ll see come the day the extra boxes turn up on the rego website.

curlylocks 5:38 pm 19 Jun 13

So does this mean it will be cheaper to register your car???? Or are their different “types” of CTP depending on who you go with??????? I am assuming it will not be any cheaper at all. ho hum

gungsuperstar 5:19 pm 19 Jun 13

Well that’s annoying. My rego is due on 27 June, I was going to pay it tomorrow.

I guess it would fanciful to assume that premiums will immediately drop on 1 July… but I’ll only be exercising the 3 month option I think to see what happens.

Captain RAAF 4:42 pm 19 Jun 13

So now there will be four boxes to tick

1. NRMA
2. RNAM
3. MRAN
4. ANMR

It won’t get any cheaper, its all going to the same place.

Tony 4:36 pm 19 Jun 13

From the CT article – http://www.canberratimes.com.au/act-news/more-choice-for-third-party-insurance-in-act-20130619-2oik7.html

“Competition in our CTP market will bring the obvious benefit of choice.”
Really, thats it! No, the obvious benefit should be price and I dont see any of that. The benefit of ‘choice’ is squat.

Benefit of choice in this case is kinda like asking; do you want to lose your wallet with all you money in it, or do you want your wallet stollen with all your money in it?

qbngeek 4:33 pm 19 Jun 13

Competition my bottom, all three of those companies are Suncorp companies so they might slightly undercut NRMA but will not compete with each other. I highly doubt they will even compete with NRMA very much and will just go with the same prices that already exist.

Jungle Jim 4:27 pm 19 Jun 13

Yep, perfect timing. I just renewed mine on Friday last week.

Great news none the less.

Reprobate 4:18 pm 19 Jun 13

Aaargh my rego is due 1 July but I will be interstate that week so I need to do it beforehand… bugger! Mind you, not sure APIA would be able to offer insurance to a 45YO whipper-snapper anyways…

Tony 4:17 pm 19 Jun 13

The absence of pricing info makes me suspect that there will be no pricing benefit what so ever.

goggles13 4:01 pm 19 Jun 13

what a shame the new arrangement for CTP is not in effect now. I have to change the rego of a QLD vehicle to the ACT tomorrow.

Rollersk8r 3:49 pm 19 Jun 13

Finally!!! …and right when I’ve just paid rego.

1 2 3

Related Articles

CBR Tweets

Sign up to our newsletter

Top
Copyright © 2017 Riot ACT Holdings Pty Ltd. All rights reserved.
www.the-riotact.com | www.b2bmagazine.com.au | www.thisiscanberra.com

Search across the site