The latest independent actuary report on retrospective CTP scheme profitability has been uploaded to the MAIC website.
When looked at on average over the past three, five or ten years, the scheme is returning an insurer profit margin above the level assumed in premium setting.
MAIC uses retrospective profit to conduct hindsight analysis of insurer and scheme profit due to the long tail nature of the scheme
The more recent years are quite immature in terms of experience and are largely based on estimated experience rather than actual experience. As insurers finalise more claims, the actual profitability will become clearer.
While at an overall level the scheme is profitable, MAIC is aware that profitability is not being achieved equally by all insurers. This may be a function of business strategy, branding, operational efficiency and/or claims experience. This may be expected in a privately underwritten competitive market; however, MAIC is closely monitoring any impact on scheme stability.