Cheaper rego as competition forces down CTP

Share Canberra's trusted news:


THE Insurance Council says a review of the ACT’s compulsory third party (CTP) insurance scheme has found increased competition between insurers drove down premiums over the past three years.

Insurance Council of Australia (ICA) CEO Rob Whelan said the review by the CTP scheme actuary measured the claims and premiums experience of motorists during a period in which three new insurance brands entered the market.

“It found that the introduction of competition saw premiums for ACT motorists fall as all four brands battled for market share,” Rob said.

“The review made reassuring reading for South Australians ahead of their move to a competitively underwritten CTP scheme from July 1.

“The review provides further evidence of the benefits to consumers of governments opening up statutory insurance schemes to competitive underwriting.

“The ACT review notes that increased competition has not only driven down premiums, it has delivered better product choice as insurers seek an edge on policy features as well as price.

“Despite this, the review found ACT CTP premiums were the second-most expensive in the country due to aspects of the scheme design.”

Mr Whelan said the ICA supported reforms which made statutory insurance schemes more efficient and sustainable.

“The ICA and insurers will continue working closely with the scheme regulator as the ACT Government weighs up its response,” he said.

Who Can You Trust?

In a world beleaguered by spin and confused messages, there's never been more need for diverse, trustworthy, independent journalism in Canberra.

Who can you trust? Well, for more than 25 years, "CityNews" has proudly been an independent, free, family-owned news magazine, serving the national capital with quality, integrity and authority. Through our weekly magazine and daily through our digital platforms, we constantly and reliably deliver high-quality and diverse opinion, news, arts, socials and lifestyle columns.

If you trust our work online and believe in the power of independent voices, I encourage you to make a small contribution.

Every dollar of support will be invested back into our journalism so we can continue to provide a valuably different view of what's happening around you and keep free.

Click here to make your donation and you will be supporting the future of journalism and media diversity in the ACT.

Thank you,

Ian Meikle, editor

Previous articleDon’t panic about the smoke over Canberra
Next articleReview / ‘Rams’ (M) *** and a half

Leave a Reply