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Insurer Market Share 2010

There have been significant changes to greenslip insurer market share, shown in the latest analysis published by the Motor Accident Authority (MAA).

Written premiums

Insurer market share on the basis of written premiums over the last four years is set out in the table below (Motor Accident Authority Annual Report 2009-2010, page 57). The table also shows changes to market share between June 2009 and June 2010.

June 2007 June 2008 June 2009 June 2010 Change 2009 to 2010
AAMI 15.1% 14.7% 12.5% 10.1% -19.2%
Allianz 15.7% 15.6% 14.4% 13.4% -6.9%
CIC Allianz 7.8% 6.8% 6.2% 4.9% -21.0%
GIO 8.3% 8.1% 8.8% 10.7% +21.6%
NRMA 35.6% 35.8% 37.3% 36.7% -1.6%
QBE 10.6% 12.2% 13.6% 17.5% +28.7%
Zurich 6.9% 6.8% 7.2% 6.7% -6.9%

NRMA remains the dominant insurer with 36.7% of the market, down fractionally (1.6%) on the previous year.

Of the seven insurers offering CTP greenslips in NSW, two increased market share and five lost market share.

The winners for the year were GIO, increasing market share by 21.6% and QBE, increasing market share by 28.7%.

AAMI, Allianz, CIC Allianz, NRMA and Zurich all lost market share. CIC Allianz market share was down by 21.0% and AAMI market share was down by 19.2%.

The total premium pool for the year ending 30 June 2010 was $1.5 billion.

At-Fault Driver Cover Update – Issues Continue

In our News article of 1 April and in our analysis of at-fault driver cover, we identified issues with the payment of at fault driver cover benefits for accidents occurring after 1 April 2010.

As at 15 October 2010, those issues remain for some insurers.

This site was the first to identify and articulate the issues.

The facts

Here are the facts.

Prior to 1 April 2010, the driver at fault in an accident was not covered under the CTP greenslip scheme unless the driver was catastrophically injured.

  1. Five of the seven greenslip insurers offer an additional feature with greenslips, generally referred to as at fault driver cover.
  2. At fault driver cover means that insurers pay the at fault driver specified benefits for specified injuries which that driver may sustain in an accident.  Benefits vary, but are typically around $50.000.00.
  3. Each insurer provides a policy document setting out the terms on which at fault driver cover benefits will be paid.
  4. Effective from 1 April 2010, the State Government amended the Motor Accidents Compensation Act 1999 so that injured at fault drivers became entitled to compensation up to a maximum of $5,000.00. The legislation to amend the scheme was introduced in May 2009.
  5. As at 1 April 2010 the insurer’s policy documents stated that no at fault driver cover benefits were payable if the injured at fault driver also received or was entitled to receive compensation under the Act.
  6. Therefore, on the basis of policy wording, no at fault driver cover benefits were payable from 1 April 2010, yet insurers continued to market the benefits of those policies.

Current situation

As at 15 October 2010:

  1. NRMA and QBE have updated policy terms so that at fault driver cover benefits are payable.

  2. GIO has stated publicly and on its website that it does not intend to apply the terms of the policy document so as to exclude at fault drivers from accessing benefits and that policy terms will be amended to ensure this is clear.

  3. On the basis of the Allianz policy document, benefits are not payable because the injured at fault driver is entitled to the compensation under the Act.

  4. On the basis of the Zurich policy document, benefits will not be paid if the injured at fault driver receives compensation under the Act.

We will continue to monitor the position and will update this site as necessary.

Greenslip Prices For Cars – Changes From 1 July 2010

Greenslip average prices for cars in NSW are on the move from 1 July 2010!

We have surveyed greenslip prices for class 1 vehicles (motor cars) in the Sydney Metropolitan and Country areas as at 30 June 2010 and 1 July 2010.

Average price changes

The results, showing the average change in price between those two dates are set out in the table below.

 Average Change in Price Average Change in Price
Age of Owner
& Youngest Driver
Sydney Metropolitan Country NSW
25 2.1% 2.2%
35 3.0% 2.8%
45 3.0% 2.7%
55 3.4% 3.3%
65 3.4% 3.3%

The largest price increase found in the survey was 10.9% and the largest decrease found was 12.7%.

The survey also found that the benefits of shopping around to compare prices increase with age.  The average saving for a 25 year old owner was found to be $35.42 whereas the survey found that the average saving for a 65 year old owner is $218.32.

Average savings

The average savings established by the survey are set out in the table below.

Age of Owner
& Youngest Driver
Average Saving by Comparing Prices
25 $35.42
35 $177.07
45 $173.75
55 $218.32
65 $218.32

The trends shown in the tables are based on a sample of greenslip prices as at 30 June 2010 and 1 July 2010.  Greenslip prices change over time and in every case need to be checked on the basis of specific vehicle and owner details.

New Greenslip Price Classifications for Motorbikes Commencing 1 July 2010 – Winners & Losers

Classification of motorbikes for determining CTP greenslip prices in NSW is changing from 1 July 2010.  The new classifications will result in significant greenslip price changes for many owners, some up and some down.

Engine capacity

For greenslip purposes, motorbikes are classified on the basis of engine capacity.  The classifications are designated by the Motor Accident Authority of NSW for use by greenslip insurers.  Greenslip insurers apply those classifications, along with consideration of other factors such as location, claims history, driving record and rider age, to determine greenslip prices.

Until 30 June 2010 three classifications apply:

i) Under 100cc
ii) 101cc to 300cc
iii) Over 300cc

From 1 July 2010, five new classifications will apply:

i) Under 225cc
ii) 226cc to 725cc
iii) 726cc to 1,125cc
iv) 1,126cc to 1,325cc
v) Over 1,325cc

How they work

The change in classifications is designed to allow more levels of price differentiation for risk based on engine capacity and claims experience.  Clearly, one classification for all motorbikes above 300cc is too wide.

The new classifications do not include consideration of other risk characteristics such as the type of motorbike or pillion capacity.

The new classifications result in a major realignment of prices.  Some motorbike owners will benefit from sizeable decreases in greenslip prices, whilst others will be required to pay significantly more.

We have surveyed prices as at 30 June 2010 and 1 July 2010 for a range of motorbikes in the Sydney Metropolitan and Country areas.  The results, showing the average change in price between those two dates are set out in the table below.

 Average Change in Price Average Change in Price
Capacity Sydney Metropolitan Country NSW
125cc -9.9% -3.9%
250cc 88.9% 107.3%
400cc -27.3% -29.6%
650cc -27.3% -29.6%
800cc 5.2% 1.9%
1,100cc 4.4% 1.2%
1,200cc  34.9%  24.6%
1,500cc  19.8%  13.0%
2,000cc  19.8%  13.0%

Hardest hit will be motorbikes at the bottom of the 226cc to 725cc classification, such as 250cc motorbikes.  250cc motorbikes were previously classified with 101cc to 300cc motorbikes.  For a 250cc motorbike the survey shows an average increase in price of 88.9% in the Sydney Metropolitan area and 107.3% in Country areas.

The survey shows that prices have increased in the three classifications for motorbikes above 726cc.  The average increase in price for an 800cc motorbike is 5.2% in the Sydney Metropolitan area and 1.9% in Country areas.  The average increase in price for a 2,000cc motorbike is 19.8% in the Sydney Metropolitan area and 13.0% in Country areas.

Motorbikes in the 1,126cc to 1,325cc classification have shown a higher average increase in price than other large capacity motorbikes.  For a 1,200cc motorbike the survey shows an average increase in price of 34.9% in the Sydney Metropolitan area and 24.6% in Country areas.

Biggest winners

The biggest winners are motorbikes in the upper range of the 226cc to 725cc classification, such as 400cc and 650cc motorbikes.  Those motorbikes were previously classified with all motorbikes over 300cc.  For both 400cc and 650cc motorbikes the survey shows an average decrease in price of 27.3% in the Sydney Metropolitan area and 29.6% in Country areas.

Some small capacity motorbikes under 225cc will also benefit.  For a 125cc motorbike (such as a scooter) the survey shows an average decrease in price of 9.9% in the Sydney Metropolitan area and 3.9% in Country areas.

Interestingly, the survey also shows that for an older rider with good claims and driving records, the benefit of shopping around to compare prices will in some cases save several hundred dollars, whereas for a young rider with bad claims and driving records, the benefit of shopping around will generally be less than $20.00.

The trends shown in the table are based on a sample of greenslip prices as at 30 June 2010 and 1 July 2010.  Greenslip prices change over time and in every case need to be checked on the basis of specific motorbike and owner details.

Comment at our Blog. Tell us how the changes will affect you. What is your opinion on the new classifications?

NSW Government Press Release on CTP Green Slip Scheme Reform, Commencing 1 April 2010

In our news article of 10 March 2010 we released news from the press release of reforms to the CTP greenslip scheme.

The first reform provides that hospital treatment, transport by ambulance and other treatments for at fault drivers is funded by the CTP greenslip scheme.

The second reform, effective for accidents occurring from 1 April 2010, provides that at fault drivers will also be entitled to compensation through lodgement of an Accident Notification Form (ANF).  Subject to the provisions, at fault drivers will become entitled to claim up to $5,000.00 for treatment expenses and for lost earnings by lodging an ANF.

Press release

The NSW Government has today issued a Press Release announcing the second reform.

Interestingly, the release does not deal with the issue we raised in our news article. That is, the impact on At Fault Driver Cover Policies offered as an additional benefit by some of the insurers. There has been no change to this point.  We will monitor the position.

Detailed analysis of the legislation changes and the impact on the CTP greenslip scheme is available on this site.

CTP Greenslip Scheme Reforms – Second Reform Commences 1 April 2010

Reforms to the CTP greenslip scheme by the NSW State Government are having a fundamental impact on the operation of the scheme.  The second of two major reforms commences on 1 April 2010.

The reforms impose new costs on the CTP greenslip scheme, provide additional benefits for at fault drivers and result in higher greenslip prices.

The Government first signalled its intention in the November 2008 State Mini Budget when it announced “The Government will further reform the Greenslip scheme to provide hospital and ambulance coverage for at-fault drivers”.

The reforms go beyond the intention stated in the November 2008 State Mini Budget.

Prior to the reforms, the at fault driver in a motor vehicle accident was not covered by the CTP greenslip scheme, unless the driver was catastrophically injured.

To implement the reforms the government introduced new legislation in May 2009.

Two major reforms

There are two major reforms to the operation of the CTP greenslip scheme as a consequence of that legislation.

1. The first reform is already effective and applies to accidents occurring from 1 July 2009, so that hospital treatment, transport by ambulance and other treatments for at fault drivers is funded by the CTP greenslip scheme.

2. The second reform, effective for accidents occurring from 1 April 2010, provides that at fault drivers will also be entitled to compensation through lodgement of an Accident Notification Form (ANF).  Subject to the provisions, at fault drivers will become entitled to claim up to $5,000.00 for treatment expenses and for lost earnings by lodging an ANF.

In summary, from 1 July 2009, the cost of treating at fault drivers in the public hospital system is funded by the CTP greenslip scheme, rather than being a cost on the public hospital system or on private health insurance and from 1 April 2010 at fault drivers will be entitled to claim up to $5,000.00 through an ANF for treatment expenses and for lost earnings.

The Government has reduced costs on the public hospital system by transferring the cost of treating at fault drivers to the CTP greenslip scheme.

The precise cost of the reforms to the CTP greenslip scheme is not clear.

Cost savings

The November 2008 State Mini Budget Paper (page A – 7) shows that by introducing the reforms, the Government estimated cost savings of $105,000,000.00 between 2009 and 2012.  The Motor Accident Authority has estimated that an additional 4,000 at fault drivers per year will now claim up to $5,000.00 through an ANF (Motor Accidents Authority of NSW, Annual Report 2008-2009, page 12).

Regardless of the actual cost, the reforms have increased the cost base of the NSW CTP greenslip scheme and have resulted in increased greenslip prices.

Insurers are required to lodge submissions to the Motor Accident Authority (MAA) at least once a year, setting out the greenslip prices they propose to charge. The submissions lodged in October 2009 incorporated the impact of both reforms. The reforms are reflected in greenslip prices currently being paid. In response to specific enquiries made by us, the MAA has advised “the combined impact of the bulk billing and no-fault ANF reforms is approximately $10 per Green Slip”.

Interestingly, the government has extended the scheme to include at fault drivers!up to a point. People injured in a motor vehicle accident, other than the at fault driver, are entitled to benefits under the CTP greenslip scheme in excess of those available to an at fault driver, despite the changes to the legislation.

Final consequence

A final unknown, but not insignificant, consequence of the reforms is the impact on at fault driver cover.  At fault driver cover is an additional feature offered by five of the seven greenslip insurers. Through at fault driver cover insurers pay specified benefits for specified injuries which the driver at fault may sustain in a motor vehicle accident.

As at 8 March 2010 the at fault driver cover policy documents published by the insurers state that no at fault driver cover benefit will be payable where compensation is also paid or payable under the CTP greenslip scheme.  Unless the insurers change the terms of their at fault driver cover policies, from 1 April 2010 any at fault driver lodging an ANF for compensation will not be entitled to payment under the insurers at fault driver cover policy.

Detailed analysis of the legislation changes and the impact on the CTP greenslip scheme is available on this site.

CIC Allianz – No At-Fault Driver Protection Insurance and No Payment By Credit Card

In our blog of 2 February 2010 we explained that CIC Allianz no longer accepts payment by credit card. It does not offer at-fault driver protection insurance.

Go to head office

To purchase a CIC Allianz greenslip, CIC Allianz is advising potential customers to go to the Allianz head office at 2 Market Street Syndey and pay by cash or cheque.  This also applies to renewals.  You can pay by credit card through some brokers or agents who sell CIC Allianz greenslips, however CIC Allianz will not help you find a broker or agent.

CIC Allianz do not offer an online service to purchase or renew your greenslip.

If you find a broker or agent, or make it in to Market Street in Sydney, you need also be aware that CIC Allianz is no longer issuing At-Fault Driver Protection Insurance with its CTP greenslips.

It seems CIC Allianz is doing all it can to discourage customers other than business or fleet customers.