MAIC have recently completed this year’s motorist research into Compulsory Third Party (CTP) insurance. The survey aims to capture the knowledge and perceptions of CTP insurance from two groups: general motorists and new car buyers. MAIC have commissioned similar studies in 1999, 2007, 2011, 2013 and 2016.
The 2017 study was conducted in two stages; a preliminary qualitative stage (two focus groups) to explore key issues and help inform questionnaire design for stage two (a state‐wide quantitative online survey). This comprised 315 surveys with registered motor vehicle owners and 210 surveys with people who had purchased a new car between May 2016 and May 2017. The survey fieldwork was conducted between the 18th May and 29th May 2017.
Some key findings of the research were:
- 53% of respondents are unaware, when prompted, that comprehensive motor vehicle insurance does not cover the driver or passenger for injury (36% are aware, while 11% are unsure).
- 67% of motorists in the 2017 survey pay their CTP/registration annually (up from 61% in 2016), 25% pay 6 monthly (down from 31% in 2016), 5% pay quarterly, while 4% can’t recall the frequency.
- The most important factors to respondents in 2017 in relation to CTP insurance are getting an affordable premium, ensuring all drivers who cause accidents are covered for claims made against them or the ease of dealing with the insurer.
- When prompted with a list of alternatives, 79% of registered motor vehicle owners correctly believe CTP insurance covers personal injury for third parties.
- 86% of respondents report being aware they have the ability to switch CTP insurer.
- 17% of registered motor vehicle owners report an intention to switch in the next 12 months. 4% indicate they are very likely to do so, while 13% are quite likely to switch in the next 12 months. Results are consistent with 2016 findings (19% likely).
- 13% of new car buyers in the 2017 survey reported they have changed their CTP provider since purchasing their new car (18% in 2016). 38% of all new car buyers stated they would consider changing their CTP insurer the next time their renewal is due (38% in 2016).
- 78% of registered motor vehicle owners report that a CTP scheme that has a focus on affordable premiums for the majority of the community is more important to them than a scheme where the focus is on promoting greater price competition between insurers.
Motorist research ensures MAIC makes policy decisions in line with community needs and expectations. It has the additional benefit of identifying areas in which there are confusion in the community so that MAIC can correct misinformation through its online and social media presence.