Quarterly CTP Scheme Insights: Oct-Dec 2022

Overview

Queenslanders continued to enjoy a stable, fair and affordable compulsory third-party (CTP) insurance scheme this quarter.

Between October and December 2022, we:

  • launched a road safety campaign with Queensland Trucking Association to encourage truck drivers to observe a safe following distance
  • continued our collaboration with the Queensland Children’s Hospital and the University of Queensland to negotiate an extension to the Queensland Pediatric Rehabilitation Chair
  • celebrated the tenth anniversary of PCYC Queensland’s Braking the Cycle program which has supported thousands of learner drivers to obtain their drivers licence
  • hosted a CTP claims forum for industry partners to improve the experience of CTP insurance claimants

In the first quarter of 2023, we will:

  • increase data analytics capability through the Jamieson Trauma Institute data bureau
  • continue to engage with our industry stakeholders, including at the Australian Lawyers Alliance State Conference
  • support the Emergency Medicine Foundation (EMF) Special Research Grants Program for trauma management in regional, rural and remote Queensland
  • conduct our 2023-24 annual risk premium review to ensure we continue to provide fair and affordable CTP insurance premiums to Queensland motorists
  • work with representatives from CTP insurers and legal practitioners to prioritise our next steps arising from our CTP claims forum.

Stay in the loop

To stay informed:

Explore our graphs below to learn more about our scheme’s performance.

Tip: When viewing this report on a smaller screen, click the labels on our graphs to view them at a larger size.

Premium

CTP premium breakdown

Our commitment to stable and affordable CTP insurance premiums was again reflected this quarter.

New claims

Number of new claims per quarter

The number of claims added for quarter 4 was 6% lower than the same period last year, and 13% lower than the quarter 4 average for 2017-19. This could be due to the lower traffic volume compared to pre-COVID period.

We continue to work with research partners, peak bodies, advocacy groups and government entities on initiatives to reduce the incidence and effects of road trauma. This includes attending the recent road safety roundtable hosted by the Department of Transport and Main Roads.

Proportion of claims added per quarter

About three quarters of people who lodged CTP insurance claims were represented by Queensland law firms.

 

Number of claims added per quarter by severity

Approximately 1500 claims were lodged for minor injury whereas approximately 300 were for injuries classified as moderate or above. This is consistent with previous quarters.

CTP insurers

Insurer market share

Market share for each insurer remained stable this quarter with RACQ recording a slight increase.

New registrations through motor dealers

Motorists select their CTP insurer when they purchase a new or used vehicle through the motor dealer. We recently implemented changes to the Letter of authority form issued by Department of Transport and Main Roads to periodically rotate the insurers listed. This helps to overcome ‘primacy bias’ to encourage motorists to actively select their CTP insurer.

Number of motorists switching insurers

The number of motorists who switch from one CTP insurer to another varies from month to month. This quarter, the number of switchers trended slightly upwards.

Nominations to switch insurer

Some motorists elect to switch insurers during the term of their policies or when their policies are due for renewal. This quarter, more motorists switched to RACQ and Suncorp than switched away from them. This resulted in a net gain of 14,701 policyholders for RACQ and 5,971 for Suncorp; or 5,000 and 2,504 for the month of December, respectively.


Legally-represented claimants – Average claim duration (months)

We continue to monitor insurers’ legislative compliance and claims management practices, including claim durations and stages of settlement. Where variations exist between insurers, we are analysing the data and consulting with insurers to understand the reasons behind it. The duration of a claim can be influenced by injury severity, circumstances around liability, evidence gathering, and claims management approach.

Direct claimants – Average claim duration (months)

Direct claimants will often experience a shorter claim duration when compared with those who lodge their claims through legal representatives. This additional length of time can often be attributed to people seeking legal assistance when the nature of their claim is more complex.

Traffic volume

Average growth rates in traffic flow compared to corresponding months in 2019

In South-East Queensland, the traffic volume in the second half of 2022 was around 5-6% lower than the corresponding month in 2019, before the COVID pandemic.

Vehicle registration

Number of registered vehicles by vehicle class

The number of hire vehicles (class 4) registered this quarter increased by 5.5%. The number of taxi (class 3 vehicles) registered has been continually increasing since April. The number of rider-only motorcycles (class 12 vehicles) is starting to plateau.

Learn more

Want to learn more? Contact our Analytics team.

Share your feedback on this report through our quick survey.

Last modified 20 February 2023

Andi

Got a minute?

We'd love your feedback on our virtual assistant.

Start survey

No thanks

Hello, I'm Andi. I'm here to help you with your CTP related enquiries.