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Are CTP insurers pulling their weight?

While most people never make a CTP claim, they need to be sure insurers will do their job properly. This is why State Insurance Regulatory Authority (SIRA) now provides quarterly performance data. It helps vehicle owners choose their CTP insurer and, if they need to make a claim, an idea of what to expect.

The latest report

The latest SIRA report compares 2019 with 2018 insurer performance. It shows how AAMI, Allianz, GIO, NRMA and QBE measure up against four main indicators of customer experience:

  • How many claims CTP insurers accepted
  • How quickly insurers paid benefits
  • If decisions changed after insurer review
  • Insurer compliments and complaints.

We explain why each indicator makes a difference to claimants.

Claims accepted

Insurers have to accept or deny claims for benefits quickly so early treatment can begin. In 2019, compared to 2018, all insurers except for GIO handled more claims.

  • 11,259 total claims accepted in 2019, up 7% from 2018
  • Insurers declined 1.7% of claims in 2019 (1.3% in 2018)
  • Claimants have 98.3% chance of acceptance.

Claimants must lodge in time (less than 90 days after the accident) and give sufficient information. These are the main reasons why CTP insurers reject claims.

How quickly CTP insurers pay

How quickly insurers pay benefits is vital for helping injured people recover quickly. In 2019, three quarters of all claimants, compared to 69% in 2018, got pre-claim support. All insurers provided more pre-claim support, especially Allianz and NRMA.

Insurers pay income support to people who lose income because they cannot work. During 2019, half of claimants received income support within the first month of claiming and most within 13 weeks. This was 12% more than in 2018. Allianz had the most customers who received early income support within the first month.

Result of insurer review

When customers disagree with a decision about their claim, they can ask for an insurer review. The main topics are minor injury, treatment and care, weekly payments, or who was at fault in the accident.

  • Of 2,091 reviews, insurers changed 27% (24% in 2018) of decisions in favour of claimants
  • 71% of decisions about whether the injured person was mainly at fault, favoured the claimant
  • Of 36 reviews per 100,000 green slips in 2019 (27 in 2018), GIO and AAMI held the most.

Complaints and compliments

The injured person, rather than vehicle owner, makes the most complaints to SIRA. There are about five times more complaints than compliments (730 v 162). (These figures exclude complaints or compliments given directly to insurers.)

Most complaints are about claims decisions, delays, then service. However, there is no information about compliments.

Overall, it appears claimants can trust CTP insurers to pull their weight. There is more about individual insurer performance in State Insurance Regulatory Authority (SIRA), CTP Insurer Claims Experience and Customer Feedback Comparison, 31 December 2019.

Corrina Baird

Writer and expert greenslips.com.au

Corrina used to lend her car to her kids and discovered first hand what Ls, Ps and demerits mean for greenslips. After 20 years of writing and research in financial services, she’s an expert in the NSW CTP scheme. Read more about Corrina

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