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First performance ratings for NSW CTP insurers

Many vehicle owners use the greenslips.com.au calculator to help them choose one of the five CTP insurers. While some just want the cheapest price, others want to know more about each insurer. Until now, there has been no official information published about insurer performance in the NSW CTP scheme.

State Insurance Regulatory Authority (SIRA) now provides quarterly data on insurer performance to help people make better comparisons and know what to expect if they have to make a claim.

SIRA is the government body that oversees the NSW CTP scheme and, until now, has published broad information about market share, premiums and claims. This new data focuses on individual insurers, how they perform against the indicators, and what customers might expect when dealing with them.

Four indicators of customer experience

SIRA’s first release of insurer data covers the period from 1 December 2017, when the new CTP scheme began, to 30 June 2019. In future, SIRA will provide insurer reports on a quarterly basis. Each report will show how the five insurers – AAMI, Allianz, GIO, NRMA and QBE – measure up against four indicators of customer experience:

  • How many statutory benefits claims insurers accepted
  • How quickly insurers paid statutory benefits
  • Claim decisions made after internal insurer review
  • Number and type of insurer compliments and complaints received by SIRA.

We explain how each indicator of performance is important to customers.

1. How many statutory benefits claims insurers accepted

The new scheme since 1 December 2017 made statutory benefits available to people in the first 6 months after their car accident. It is up to insurers to accept claims for these statutory benefits and to do so quickly. In fact, insurers accepted an average of 98% of these claims. The most common reasons for rejecting them were late lodgement (more than 90 days after the accident) and insufficient information.

2. How quickly insurers pay statutory benefits

How quickly insurers pay statutory benefits is important for helping people make a full recovery after an accident. Customers can also get pre-claim support before they have made a formal claim. Around 71% of injured people received pre-claim support and a further 22% got treatment and care within a month of lodging their claim.

Income support is benefits paid for people who have lost income because they cannot work. While 41% of customers received income support within the first month of lodging a claim, most received it within 13 weeks.

3. Outcome of claim decision after internal review

When customers disagree with the insurer’s decision, they are allowed to request an internal review. Types of decisions they might review include minor injury, treatment and care, weekly payments, who was at fault in the accident.

Of 2,297 internal insurer reviews, insurers changed 23% of their decisions in favour of the customer.

4. Number and type of complaint or compliment

SIRA received 361 complaints and 67 compliments, around a fifth of the number of complaints. Most complaints about decisions were related to delays and expectations of service. Note, these figures do not include complaints or compliments given directly to insurers.

While SIRA says compliments help identify best practice in managing claims, it does not break down types of compliments received. This might be worth doing in future to encourage insurers how to provide service that customers value.

Information on individual insurer performance is available in the SIRA publication.

Source: State Insurance Regulatory Authority (SIRA), CTP Insurer Claims Experience and Customer Feedback Comparison, 1 December 2017 to 30 June 2019. Published August 2019.

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