The Motor Accidents Authority (MAA) is preparing a Compulsory Third Party (CTP) Pricing Strategy to be released late in 2012.
A copy of the Terms of Reference for the strategy, approved by the NSW Minister for Finance and Services, is available here.
It is envisaged that the strategy will determine the future direction of the scheme. The Terms of Reference focus on lower premiums, lower costs and optimum benefits within an affordable model. The MAA says “preparation of the strategy will address key issues to ensure the Green Slip Scheme remains equitable, affordable and sustainable into the future".
Specifically the Terms of Reference include examination of:
- Improvements to premium regulation for equitable but not excessive insurer profit margins.
- Improvements to insurer supervision and market acquisition practices to ensure premiums are sufficient but not excessive.
- Optimising the basis of premium setting for different vehicle classes, having regard to risk and affordability.
- Opportunities to promote price competition.
- Ensuring the MCIS Levy is applied fairly and that services funded by it are delivered efficiently.
- Process improvements to improve claims management and dispute resolution.
- Transparency of legal fees and other scheme costs to optimise benefits received by injured people.
- Simplification of the claims process.
- Strategies to leverage better medical cost pricing and practices.
Focus areas for detailed analysis, identified by the MAA, are:
- Market design
- Premium regulation
- Government expenditure
- Benefits design
- Claims management processes.
The strategy will be developed through research, consideration of earlier reviews and consultation with stakeholders and the public.