Annual Report 2022-23

Accessibility and copyright

Print: ISSN:1837-1450

Online: ISSN: 1837-1469

The Queensland Government is committed to providing accessible services to Queenslanders from all culturally and linguistically diverse backgrounds. If you have difficulty in understanding the annual report, you can contact us on the enquiries line 1800 CTP QLD (1800 287 753) and we will arrange an interpreter to effectively communicate the report to you.

Motor Accident Insurance Commission
GPO Box 2203, Brisbane QLD 4001
Phone: 1800 CTP QLD (1800 287 753)
Email: maic@maic.qld.gov.au
Web: www.maic.qld.gov.au

Nominal Defendant
GPO Box 2203, Brisbane QLD 4001
Phone: 07 3035 6321
Email: nd@maic.qld.gov.au
Web: www.maic.qld.gov.au/nominal-defendant

Visit www.maic.qld.gov.au to view this annual report. Copies of the report are also available in paper format. To request a copy, please contact us using the details above.

© Motor Accident Insurance Commission 2023

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Attribution: Content from this annual report should be attributed as: The Motor Accident Insurance Commission Annual Report 2022-23.

Letter of compliance and certification of financial statements

1 September 2023

The Honourable Cameron Dick MP

Treasurer and Minister for Trade and Investment

GPO Box 611

BRISBANE QLD 4001

Dear Treasurer

I am pleased to submit for presentation to the Parliament the Annual Report 2022–23 and financial statements for the Motor Accident Insurance Commission and the Nominal Defendant.

I certify that this Annual Report complies with:

• the prescribed requirements of the Financial Accountability Act 2009, the Financial and Performance Management Standard 2019, the Motor Accident Insurance Act 1994 and the National Injury Insurance Scheme (Queensland) Act 2016
• the detailed requirements set out in the Annual report requirements for Queensland Government agencies.

A checklist outlining the annual reporting requirements can be accessed online.

Yours sincerely,

Neil Singleton
Insurance Commissioner

About us

Queensland compulsory third party insurance scheme

Queensland’s compulsory third party (CTP) insurance scheme is governed by the Motor Accident Insurance Act 1994 (MAI Act).

The scheme protects motor vehicle owners, drivers and passengers from being held financially responsible if they injure someone in a motor vehicle crash. It also enables people who are injured to claim fair and timely compensation for their injuries and access prompt and reasonable medical treatment and rehabilitation.

Motor vehicle owners pay their CTP insurance premium when they pay their vehicle registration through the Department of Transport and Main Roads (DTMR). DTMR remits the applicable premium to the licensed CTP insurer nominated by the motor vehicle owner. This minimises administration costs, is convenient for motorists and reduces the incidence of uninsured vehicles.

Motor Accident Insurance Commission

The Motor Accident Insurance Commission (MAIC or Commission) is the regulatory authority responsible for ongoing management of Queensland’s CTP insurance scheme.

MAIC’s functions include:

• licensing and supervising CTP insurers and monitoring their compliance
• regulating the CTP insurance scheme
• establishing and revising standards about the proper management of claims
• keeping the statutory insurance scheme under review and making recommendations for its amendment
• developing and maintaining a claims register and statistical database for the purpose of providing management information
• fixing the range within which each insurer must file their premium
• monitoring the availability, adequacy and use of rehabilitation services for people injured in crashes
• recommending to government the levies and administration fee payable to cover the costs involved in delivering different components of the CTP insurance scheme
• contributing funds towards research and education to reduce the frequency and severity of motor vehicle crashes and to facilitate rehabilitation of people who are injured in crashes
• maintaining a helpline service from which the public may obtain information on the CTP insurance scheme.

Nominal Defendant

The Nominal Defendant (ND) acts as a licensed insurer in the CTP insurance scheme for claims that involve motor vehicles that are unidentified or uninsured. It also meets the claims costs associated with licensed insurers that become insolvent.

National Injury Insurance Agency, Queensland

Queensland’s CTP insurance scheme is complemented by the National Injury Insurance Scheme, Queensland (NIISQ), which was established on 1 July 2016. NIISQ provides necessary and reasonable lifetime treatment, care and support to people who sustain eligible serious personal injuries in motor vehicle crashes on Queensland roads, regardless of who was at fault. MAIC also has a legislative function pursuant to Chapter 5 of the National Injury Insurance Scheme (Queensland) Act 2016 (NIISQ Act) to monitor the efficiency and effectiveness of the National Injury Insurance Agency, Queensland (NIISQ Agency), which administers NIISQ.

The Insurance Commissioner of MAIC is also the Chief Executive Office responsible for managing the NIISQ Agency. In line with statutory requirements of the NIISQ Act, the NIISQ Agency is required to produce its own annual report, which can be viewed at https://niis.qld.gov.au/news-and-research/annual- reports. MAIC has been located in Brisbane since it commenced operations on 1 September 1994 as a statutory body reporting to the Treasurer and is located at 275 George Street. MAIC and the Nominal Defendant are positioned within the Economics and Fiscal division of Queensland Treasury.

Our purpose

We are here to boldly lead our scheme to create amazing outcomes.

Our vision

By 2026, claimants and motorists will benefit from improved experiences and outcomes through our leadership of an aligned, intelligent and empowering scheme.

Our objectives

We aim to:

• empower and equip our team and culture to be proactive and adaptive
• empower and lead a more aligned, advanced and effective scheme
• empower an easier, clearer claimant journey
• sustain confidence in the scheme and our regulatory and compliance leadership.

Our contribution to government objectives for the community

We also support the Queensland Government’s objectives for the community, built around Unite and Recover – Queensland’s Economic Recovery Plan. Specifically, we support the objective of ‘Backing world-class frontline services’ through our responsible funding of road trauma-related public services and innovation.

Our opportunities

We embrace the opportunity to:

• create an agile and dynamic culture which responds to changes in our scheme
• improve collaboration with stakeholders and scheme partners to deliver better services
• leverage emerging technologies for enhanced claimant understanding and service

Our key risks

We mitigate risks such as:

• failure of the scheme to respond to economic pressures, unethical practices and other external shocks
• balancing the needs of diverse stakeholders
• failure to keep pace with changing claimant demands and experiences.

Our success measures

Our success is indicated by:

• team culture and effectiveness measures
• scheme efficacy measures and stakeholder feedback
• claimant satisfaction
• Commission efficacy and reputation measures.

 

Insurance Commissioner’s report

It is again pleasing to report that the Queensland CTP insurance scheme remains stable, fair and affordable.

There are ten objectives for the MAI Act, and pleasingly nine are being met or exceeded, with the only exception relating to premium competition.

Affordability remains sound and stable with CTP insurance premiums for Class 1 cars and sedans rising from $364 at 1 July 2022 to $366 at 30 June 2023, representing 20.8 per cent of Average Weekly Earnings compared to 21.3 per cent last year.

Fairness was preserved and improved even further. Scheme efficiency increased from 71 per cent last year to 73 per cent this year, meaning a higher proportion of each premium dollar was paid as a claimant benefit.

The number of new claims coming into the scheme has reduced over the year and the cost of claims has remained stable.

Average insurer profitability over the past five years remains fair at a whole-of-scheme level and above the level assumed when premiums are determined, although there is variation between individual insurers.

The Nominal Defendant team performed exceptionally well during the year and this enabled the Nominal Defendant levy to be reduced for 2023-2024.

The focus on preserving scheme stability was reinforced with the Treasurer announcing in March 2023 that MAIC would undertake a scheme review. The review is focused on opportunities to improve the sustainability of the scheme while preserving aspects that are working well.

During the scheme review, RACQ Insurance (RACQ) announced they intend to exit the scheme from 1 October 2023 for commercial reasons. MAIC is engaged with the remaining licensed insurers and Department of Transport and Main Roads (DTMR) to ensure a smooth transition for people who have CTP insurance with RACQ or CTP claims with RACQ. The scheme review is on hold while MAIC prioritises working with RACQ and DTMR to facilitate the transition.

MAIC secured an important prosecution under the claim farming provisions of the MAI Act, with a one million dollar fine applied to the entity involved. Other prosecutions will likely be heard in the year ahead as MAIC continues to invest resources in detecting and deterring claim farming.

The MAIC and Nominal Defendant innovation roadmaps continue to evolve as we find better ways to deliver services and improve scheme outcomes. MAIC held several forums with insurers and legal representatives to explore ways that the claim process could be further improved. A highlight was seeing our Injury Coding Assistant project, led by Ms Jo Costello (Manager, Scheme Monitoring), listed on the Queensland Government Our Thriving Digital Future: 2023–26 Action Plan as one of 13 initiatives supporting a digitally-enabled government.

MAIC funding was renewed for a data-related collaboration across MAIC, the Jamieson Trauma Institute at Metro North Hospital and Health Service, Queensland Police Service (QPS) and the Road Safety Data Bureau in DTMR. This provides surety to all stakeholders involved with the bureau and their work in reducing the incidence and effects of road trauma in Queensland.

For the year ahead, the areas of focus for MAIC are to:

• complete the scheme review and implement approved recommendations
• continue to explore innovative solutions with a focus on digitising the claim process and reducing its duration
• review insurer cyber controls and the use of artificial intelligence and emerging technologies in CTP claims management and customer service processes
• continue to invest in research and initiatives aimed at reducing the incidence and effects of road trauma
• continue stakeholder engagement to explore ways to make the CTP insurance scheme safe and accessible for all Queenslanders.

I thank the MAIC and Nominal Defendant teams for their sustained energy and dedication to improving scheme performance and outcomes during the year. I also thank scheme stakeholders for their ongoing support to ensure Queensland road users continue to benefit from the best CTP insurance scheme in Australia.

Neil Singleton
Insurance Commissioner

Levies and administration fee

Queensland’s CTP insurance premium contains levies and an administration fee to help cover the costs involved in delivering different components of the CTP insurance scheme.

These levies and administration fee are calculated annually and include:

• the statutory insurance scheme levy
• the Nominal Defendant levy
• the hospital and emergency services levy
• the National Injury Insurance Scheme,
• Queensland levy
• an administration fee.

In setting these levies, advice is sought from the receiving agencies and the State Actuary’s Office.

Statutory insurance scheme levy

The statutory insurance scheme levy covers the estimated operating costs of administering the MAI Act and also provides funding for research into crash prevention and injury mitigation. From 1 July 2022, the levy increased by 50 cents to $2.00 per policy and the levy collected $9.7 million in 2022–23.

Nominal Defendant levy

The Nominal Defendant levy varies by vehicle class and covers the estimated costs of the Nominal Defendant scheme which provides funds to pay for claims relating to uninsured (unregistered) or unidentified vehicles. The levy is set having regard to an actuarial assessment of claim trends. From. 1 July 2022, the levy for Class 1 vehicles decreased by $3.00 to $5.00 with $23.3 million collected in 2022–23.

Hospital and emergency services levy

The hospital and emergency services levy covers a reasonable proportion of the estimated cost of providing public hospital and public emergency services to people who are injured in motor vehicle crashes, who use such services and who are claimants or potential claimants under the CTP insurance scheme. The levy amount calculated varies by vehicle class. From 1 July 2022, the hospital and emergency services levy decreased by $6.00 to $12.40 for a Class 1 vehicle. The collected income from the levy for the financial year was $58.1 million of which $48.1 million was apportioned to Queensland Health, $2.5 million to Queensland Fire and Emergency Services (QFES) and $7.5 million was allocated to Queensland Police Service (QPS). Collecting the levy in this way removes the need for hospitals and emergency services to issue invoices to CTP insurers for each treatment provided to victims of road crashes. This saves significant administration burden for service providers and licensed CTP insurers.

National Injury Insurance Scheme, Queensland levy

The National Injury Insurance Scheme, Queensland levy (NIISQ levy) varies by vehicle class and covers the estimated costs of the NIISQ which provides necessary and reasonable lifetime treatment, care and support to people who sustain eligible serious personal injuries in motor vehicle crashes in Queensland. The NIISQ levy increased by $13.30 to $116.60 for a Class 1 vehicle in 2022–23 and collected $570.8 million.

Administration fee

The administration fee is the fee payable to DTMR for delivering administrative support for the CTP insurance scheme. The administration fee decreased by 60 cents to $8.00 per policy in 2022–23 and collected $38.6 million.

Premium levy and fee collection

1 July 2022 to 30 June 2023

Description*	$ (‘000)
Total insurance premiums collected**	1,838,314
Nominal Defendant levy	-23,324
Statutory insurance scheme levy	-9,651
Hospital and emergency services levy^	-58,031
Administration fee (DTMR fee)	-38,628
NIISQ levy+	-570,842
Insurer’s premiums#	1,137,838

 

Notes:

* Levies received for the period 1 July 2022 to 30 June 2023 are on a cash basis.
** Net of cancellations.
^ From 1 July 2016, emergency levies collected were remitted separately to relevant entities. In the past the emergency levies were remitted as one payment
+ National Injury Insurance Scheme, Queensland levy.
# Includes GST.

 

Achievements

CTP insurance scheme review 2023

In March 2023, we released a discussion paper on the state’s CTP insurance scheme for consultation with key stakeholders and the wider community to ensure it continues to deliver ongoing affordability and fairness.

The discussion paper and overarching scheme review was focused on identifying opportunities to improve the scheme’s sustainability and did not consider any changes to the premium-setting process or compensation benefits for people who are injured.

Submissions to the discussion paper closed in April 2023. We were pleased to receive 19 submissions from across the insurance industry, legal community, advocacy groups and members of the public.

While we were considering these submissions, RACQ advised of their decision to exit the scheme. The scheme review has been put on hold while we and DTMR work through urgent actions associated with the reallocation of RACQ’s policies. We look forward to completing the scheme review once these actions are completed.

Australia’s first claim farming prosecution

In February 2023, we recorded the first Australian prosecution for the insidious scamming practice known as claim farming or car crash scamming.

Claim farming involves receiving cold calls or social media messages about being involved in a car crash and making a personal injury claim. Scammers often use threatening tactics to gather personal data from Queenslanders which they sell to personal injury firms.

Legislative amendments were introduced in 2019 to proactively address claim farming in the scheme. Since the legislative reform, we have closely monitored and investigated reports of claim farming.

Recently, we took decisive action against Accident Management Solutions (AMS) to protect Queenslanders from aggressive tactics and breaches of privacy.

On 7 February 2023, the Brisbane Magistrates Court sentenced AMS to fines totalling $1.0 million for 94 claim farming offences, and $5,000 for the offence of contravening an information requirement.

Claim farming complaints from Queenslanders continued to trend down from more than 1,300 complaints in 2019 to 114 reported in 2022–23. Our team actively investigates these complaints and will prosecute where appropriate. We urge Queenslanders to hang up on scam calls and report claim farmers at http://maic.qld.gov.au/hangup.

We are committed to preserving the rights of people who have genuinely been injured, and the integrity of the Queensland CTP insurance scheme which is widely regarded as one of the most stable and affordable in the country.

Improving the experience of managing CTP insurance claims

Our focus on enhancing the claims experience for people lodging claims, their legal representatives, and industry stakeholders has continued to evolve. Developing reusable technological architecture, heightened cyber security and new ways of assisting our employees and stakeholders has been fundamental to our innovation journey.

In 2022–23, we continued to work with stakeholders to improve the Queensland CTP claim portal functionality. This included a targeted pilot with insurers and legal practitioners testing the use of MyGovID as a method of replacing digital signatures. The pilot has now concluded and provided valuable learnings about the technologies involved and the motivations of claimants and their legal representatives.

Without a doubt, the most successful product within the Queensland CTP claim portal is our online treatment plan. Treatment plans are required to be completed by qualified medical professionals as part of the CTP claim process. The digital version was so well received by users that we saw the number of lodgments triple in one year. In 2022-23, more than 1,200 treatment plans were lodged through the Queensland CTP claim portal.

Our cutting-edge Injury Coding Assistant has also continued to progress, with much interest from stakeholders across government and industry. The Injury Coding Assistant automates the injury coding of CTP medical certificates to relieve skilled staff from routine tasks so they can focus on more complex, value-adding activities. The assistant was presented at the BiiG Innovation Showcase in March this year. It is also listed on the Queensland Government Our Thriving Digital Future: 2023–2026 Action Plan as one of 13 initiatives in relation to digitally-enabled government.

In the context of increasing information security concerns across the globe, we enhanced the Personal Injury Register security infrastructure and will continue to implement further enhancements in 2023–24.

Our significant enhancements to our digital projects provide a strong foundation for us to continue to simplify and transform our services.

Managing Nominal Defendant claims prudently

The Nominal Defendant continues to deliver important protection for Queensland road users who are injured by an unidentified or uninsured vehicle. Nominal Defendant claims require a particularly stringent approach to claims management, especially where the involvement of an unidentified vehicle is alleged.

The Nominal Defendant has worked with MAIC to enhance the experience of claimants and their legal representatives throughout the claims experience. Members of the Nominal Defendant team have engaged closely in the development of the Queensland CTP claim portal. Sharing their comprehensive knowledge of the claims process and rehabilitation services, the Nominal Defendant is excited to be a part of this innovation that aims to improve customer experience.

Over the past decade, the Nominal Defendant levy paid by all motorists has decreased or remained stable each year evidencing the efficiency of the Nominal Defendant Fund.

Monitoring the NIISQ

In line with the NIISQ Act, we monitor the efficiency and effectiveness of the NIISQ Agency which administers the NIISQ. The NIISQ Agency assesses, decides and funds necessary and reasonable lifetime treatment, care and support for people who sustain an eligible serious personal injury in a motor crash in Queensland, on or after 1 July 2016.

The cost of administering NIISQ during 2022–23 was $368.62 million. As at 30 June 2023, NIISQ has 488 interim and lifetime participants. Further information about NIISQ and NIISQ Agency’s operations can be found in the NIISQ Agency Annual Report at https://niis.qld.gov.au/news-and-research/annual-reports.

Investing in road safety and rehabilitation

Institution	Title
University of Sunshine Coast	•   Road Safety Research Collaboration
	•   Drug Driving Unit
Queensland University of Technology	•   Centre for Accident Research and Road Safety
	•   Data linkage Fellowship
Griffith University	•   First Peoples and CTP Initiative
	•   First on Scene pilot for heavy vehicle drivers
	•   Procedural justice policing pilot
Police Citizens and Youth Welfare Association	•   Braking the Cycle learner driver mentor program
	•   Pilot ‘Changing Gears’ in the Napranum community
Queensland Trucking Association	•   First on Scene pilot for heavy vehicle drivers
Department of Transport and Main Roads	•   Transport Academic Partnership
	•   Road Safety Data Bureau
Transport New South Wales	•   MotoCAP motorcycle safety gear ratings
Department of Justice and Attorney-General	•   Licensing and identification muster
Logan City Council	•   Analytics pilot study

 

Prevention of road crashes

We support a range of research and education activities contributing to an effective CTP insurance scheme. Our investment ranges from targeting the prevention of road crashes, through to initiatives focused on improving the treatment, care and rehabilitation of those injured in road trauma.

In 2022–23, we celebrated the 10th anniversary of the Police Citizens and Youth Welfare Association (PCYC) Queensland’s ‘Braking the Cycle’ program. PCYC launched the program in 2012 to help disadvantaged people across Queensland connect with volunteer mentors to achieve the 100 hours of practical driving experience needed to obtain their driver licence.

We have proudly invested in the program since 2017, facilitating more than 130,000 driving hours and allowing more than 2,200 participants to successfully obtain their provisional licence. The 10th anniversary of the Braking the Cycle program in 2022 represented a major milestone for PCYC and MAIC, and in November 2022 the Treasurer hosted a reception at Parliament House to recognise the outstanding contributions of the volunteer mentors and program participants. In the next financial year, we have expanded our support for the First Nations adaption of Braking the Cycle, called ‘Changing Gears’. Following a successful pilot in Napranum, this program will also commence operations in Palm Island and Yarrabah.

In December 2022, we partnered with Queensland Trucking Association on a safety campaign to remind drivers that trucks need extra stopping distance to safely brake. Rear-end crashes remain the most common crash type in the Queensland CTP insurance scheme, currently representing almost 50 per cent of claims. As part of this campaign, two heavy vehicles in the Lindsay Australia Fleet were wrapped in a new exterior canvas with a reminder to leave a three- second gap when driving behind a truck.

We also renewed our commitment to the Road Safety Data Bureau for a further five years until 2028. The purpose of the bureau is to consolidate, integrate and analyse road crash related data from MAIC, DTMR, QPS and Queensland Health to inform whole-of- government decision making on road safety. In 2022, a major milestone was reached in the signing of a Memorandum of Understanding with Queensland Health. This is a significant achievement that will unlock data linkage opportunities and allow the bureau to better understand serious road crash injuries, with an initial focus on vulnerable road users (senior road users, motorcycle riders and bicycle riders) and contributing factors involved in these road crashes.

In line with this initiative, we also continued our investment in the Motorcycle Protective Clothing Assessment Program (MotoCAP) with a view to providing motorcycle riders across Queensland with independent, scientifically-based ratings on the relative protection and breathability of motorcycle apparel available in the Australia and New Zealand markets.

Looking forward to 2023-24, we are also excited to commence a new initiative with Logan City Council which will pilot the use of a transportation management solution in conjunction with Advanced Mobility Analytics Group that leverages video analytics, artificial intelligence and deep learning to enhance road safety management within this council into the future.

Maximising recovery

Institution	Title
University of Queensland	•   RECOVER Injury Research Centre
	•   Whiplash Clinical Pathway
	•   Sleep studies in children with TBI
	•   Healthcare usage study in children with TBI
Griffith University	•   The Hopkins Centre
	•   Spinal Injury Project
	•   BioSpine
Queensland University of Technology	•   Data Linkage Fellowship
	•   Road Trauma Modelling
Metro North Hospital and Health Service	•   Jamieson Trauma Institute
	•   Associate Professor Cliff Pollard Trauma Fellowship
Spinal Life Australia	•   Back2Work Vocational Rehabilitation Program
Queensland Brain Institute	•   Senior Research Fellowship in TBI
	•   Prediction and diagnosis using imaging and clinical biomarkers trial
Children’s Health Foundation	•   Chair of Paediatric Rehabilitation
Emergency Medicine Foundation	•   Trauma research in rural, remote and regional Queensland
Bionics Queensland	•   2022 Bionics Challenge
Retrieval Services Queensland	•   Research pilot

 

The activities we supported in rehabilitation research reflect the spectrum of injuries that can result from road crashes, from musculoskeletal injuries through to severe and lifelong injuries including spinal cord and brain injuries. In addition, we fund research that focuses on improving healthcare from point of injury, through to emergency department, hospital care, and community-based rehabilitation services.

This financial year, we evaluated the progress of our three key injury research centres: the Jamieson Trauma Institute (JTI), The Hopkins Centre and RECOVER Injury Research Centre. The evaluation process highlighted the important work that MAIC- funded research centres undertake in continually improving clinical care, rehabilitation and long-term outcomes for people injured in road crashes in Queensland. As a result, this year we were pleased to extend our partnerships with key stakeholders Metro North Health (JTI), Griffith University and Metro South Health (The Hopkins Centre) and the University of Queensland (RECOVER) on multi-year terms that will support the ongoing operation of these centres.

Griffith University continued to make measurable progress in developing both invasive and non-invasive therapies for those with spinal cord injury this year.

Firstly, the Spinal Cord Injury Project has developed a strong evidence base for its cell transplantation therapy that has laid an imminent path to clinical trials. This financial year, MAIC committed additional support to the project until 2026 that will sustain research operations and allow the team to test the therapy on new injury types including brain and peripheral nerve injuries. With road trauma being a leading cause of brain injuries, improved treatment and recovery will be of significant benefit to people who are injured, their families, Queensland Health and the Queensland CTP insurance scheme.

Secondly, with an additional three years of funding support, the BioSpine project will look to scale up efficacy testing of their non-invasive cycling system and bring their patented technologies closer to market.

Renewed investment in these projects preserves an important link across MAIC funded research projects including The Hopkins Centre and Spinal Life Australia’s Back2Work program, completing the spectrum of surgical measures, through to non- invasive rehabilitation and re-engagement back to work and the communi Support for these projects in the 2022-23 financial year will continue to place Queensland at the forefront of evidence-based developments around spinal cord injury into the future.

Governance

Our people

We strive to create a positive workplace environment where our people are engaged, committed and highly capable. Employees remained agile in 2022–23 with COVID-related restrictions eased, successful flexible working arrangements continuing and free flu vaccinations provided to all staff.

During the year, our employees were engaged in NAIDOC and Reconciliation Week activities and community events.

Employees were provided with the opportunity to immerse themselves in cultural training and other work programs.

The health and wellbeing of our team is essential and during 2022–23 we continued to emphasise the importance of an appropriate work-life balance and supported flexible workplace practices. We supported our employees through strong employee performance management and development programs, regular check-ins, through the Working for Queensland survey, and workplace health and safety strategies.

We met our obligations under the Public Service Ethics Act 1994 by ensuring our staff completed Treasury’s suite of online training modules, including modules related to the code of conduct and human rights. The online training package is rolled out to all new staff.

Our employee expenses and key executive management personnel and remuneration information can be found in the Financial Information (page 31 for MAIC, and page 60 for the Nominal Defendant). To see MAIC’s workforce profile, including full-time equivalent (FTE) staff and permanent separation rate, view the annual report of Queensland Treasury.

Our values

We align our behaviour and operations with the five Queensland public service values:

Customers first

• Know your customers
• Deliver what matters
• Make decisions with empathy

Ideas into action

• Challenge the norm and suggest solutions
• Encourage and embrace new ideas
• Work across boundaries

Unleash potential

• Expect greatness
• Lead and set clear expectations
• Seek, provide and act on feedback

Be courageous

• Own your actions, successes and mistakes
• Take calculated risks
• Act with transparency

Empower people

• Lead, empower and trust
• Play to everyone’s strengths
• Develop yourself and those around you

Human Rights

As part of our commitment to furthering the objectives of Queensland’s Human Rights Act 2019, we:

• completed Human Rights Certificates to accompany amendments to the Motor Accident Insurance Regulation 2018
• ensured all new staff learnt about their human rights obligations via our employee induction and orientation programs
• embedded a commitment to human rights into our strategic and operational plans
• continued our work with the First Nations initiative to support Aboriginal and Torres Strait Islander peoples through the CTP claims process and related road safety initiatives
• continued our focus on employee health, safety, wellbeing and human rights by supporting flexible work arrangements for employees.

One human rights complaint was received and finalised with no human rights breached.

Our leadership team

The Insurance Commissioner sets the direction for MAIC, the Nominal Defendant and the NIISQ Agency and reports to the State Parliament through the Treasurer and Minister for Trade and Investment.

He is supported by the leadership team, which includes: General Manager, MAIC; General Manager, Business and Advisory Services; and General Manager, Innovation and Delivery.

Our leadership team is responsible for implementing the strategic direction of MAIC, the Nominal Defendant, and the NIISQ Agency, and overseeing operational performance, determining operation policy and project management.

The leadership team supports the Insurance Commissioner, as the accountable officer, to meet legislative requirements and accountabilities as well as identifies and manages key areas of risk. As at 30 June 2023, the leadership team comprised of:

Neil Singleton

Insurance Commissioner

B. Business (Insurance), MBA

Neil was appointed as Insurance Commissioner in December 2010. Neil has over 30 years of insurance experience across a broad range of management and executive positions. Neil’s responsibilities include providing strong strategic leadership to ensure a viable, affordable and equitable CTP insurance scheme in Queensland.

David Vincent

General Manager, Motor Accident Insurance Commission

Appointed in 2002, David has over 30 years’ insurance experience including roles in personal injury claims management and underwriting, along with positions involving insurance regulation and government policy development. David is responsible for leading the strategic management of the Nominal Defendant claims unit, the supervision of licensed insurers and managing MAIC’s claims-related legislative functions.

Anh Bui

General Manager, Business and Advisory Services

B. Bus, LLB, FGIA, CPA

Anh is responsible for leading diverse teams across a broad range of strategic and operational functions including finance, procurement, corporate governance, communications, people, and culture. As a qualified accountant and governance professional, Anh has over 20 years’ experience in financial services, is a member of CPA Australia and has also been admitted to the legal profession.

Peter How

General Manager, Innovation and Delivery

Dip (Proj Mgt), B. Comm, Grad Dip (Commercial Computing), MBA, MAICD

Peter has comprehensive executive leadership experience in government and private enterprise across a range of industries with a particular focus on innovation and incubation, organisational performance, agility and growth. He is also a qualified company director and board advisor.

Organisational Structure

Risk management

We are committed to effective risk management and have adopted Queensland Treasury’s framework for proactively identifying, assessing and managing risks. Our risk management approach ensures:

• we meet our statutory responsibilities under the MAI Act, the NIISQ Act and other legislation
• risk management is integrated into organisational activity
• corporate governance processes, including systems of internal control, are assessed and enhanced.

Everyone in MAIC and the Nominal Defendant is responsible for managing risk. A robust risk management framework is integrated into all Treasury business activities and systems; and our leadership team is accountable for risks that may affect our ability to achieve our strategic objectives. Risks are managed through our corporate governance framework providing the foundation for effective decision-making, sound management and clear accountability.

A risk register is maintained and reviewed by the leadership team biannually. Risks are monitored with risk controls and treatment strategies assigned to risks where appropriate. Treasury’s Executive Leadership Team reviews the MAIC risk register from a consolidated Treasury perspective and MAIC has external auditors which review the register annually. Our commitment to business continuity management ensures continuity of key business services which are essential for or contribute to the achievement of our objectives.

We participate in Treasury-wide risk and accountability management through representation on Treasury’s Audit and Risk Management Committee. We also have an active Internal Audit program in place provided by the Treasury Internal Audit function.

Audit and Risk Management Committee

Insurance Commissioner, Neil Singleton, is a representative on Treasury’s Audit and Risk Management Committee.

Treasury’s Audit and Risk Management Committee (ARMC) supports Treasury’s accountable officer – the Under Treasurer – to meet the responsibilities under the Financial Accountability Act 2009, the Financial and Performance Management Standard 2009 and other prescribed requirements.

The role of the committee is to provide independent assurance and assistance to the Under Treasurer on Treasury’s risk and control frameworks and external accountability responsibilities as prescribed in the relevant legislation and standards.

The ARMC has responsibility for the review of financial statements for Treasury, MAIC, the Nominal Defendant and the Financial Provisioning Scheme.

2022–23 Audit and Risk Management Committee

Chair:
Independent member

Members:

• Assistant Under Treasurer, Social Policy
• Insurance Commissioner
• Commissioner and Registrar, Queensland Revenue Office
• Independent member and finance expert

The Under Treasurer, Deputy Under Treasurer – Social, Intergovernmental and Corporate, Head of Corporate, Chief Finance Officer (CFO), Chief Risk Officer, Queensland Audit Office (QAO) and Internal Audit (including Head of Internal Audit) have standing invitations as observers to attend all ARMC meetings. Treasury officers are invited to attend meetings as required.

Key achievements for 2022–23

In 2022–23, Treasury’s ARMC met five times and fulfilled its responsibilities in accordance with its charter and approved work plan. Key achievements included:

• endorsing the 2021–22 Financial Statements for Treasury, MAIC and Nominal Defendant
• endorsing the three-year strategic Internal Audit Plan and monitoring 2022–23 internal audit activity
• reviewing the effectiveness of the Treasury’s risk management framework and overseeing the management of significant business risks
• monitoring progress of the implementation status of internal audit recommendations
• considering issues raised by QAO including recommendations from performance audits and Treasury-related reports to Parliament.

Internal and external accountability

Our governance framework includes both internal and external accountability measures. Internal audit is an integral part of the corporate governance framework by which Treasury maintains effective systems of accountability and control at all levels. Internal audit provides assurance to the Under Treasurer that the entity’s financial and operational controls are operating in an efficient, effective, economical and ethical manner, and assists management in improving Treasury’s business performance.

Externally, MAIC and the Nominal Defendant are audited by QAO in accordance with the Financial Accountability Act 2009. MAIC and the Nominal Defendant have achieved unqualified audits since the Commission commenced operations in 1994.

More information on Treasury’s Audit and Risk Management framework including information about the committee are detailed in Queensland Treasury’s annual report.

Information systems and recordkeeping

Our recordkeeping framework aligns with Treasury’s Information Management Framework. The framework aims to ensure our record management practices are consistent with other offices within the Treasury portfolio and are compliant with current legislation and best practice record keeping standards. These include Public Records Act 2002, Information Privacy Act 2009, Right to Information Act 2009, Information Standard 18: Information Security, and Information Standard 38: Use of ICT Services, Facilities and Devices and Records governance policy.

MAIC and the Nominal Defendant are both within the scope of Queensland Treasury’s Information Security Management System (ISMS) and are included in Treasury’s annual Information Security Return. As such, during the mandatory annual Information Security reporting process, the Under Treasurer attested to the appropriateness of the information security risk management within Treasury to the Queensland Government Chief Information Security Officer, noting that appropriate assurance activities have been undertaken to inform this opinion and Treasury’s information security risk position.

 

Statistics

We produce quarterly and annual CTP Scheme Insights reports to demonstrate key aspects of scheme performance. We measure the performance of the scheme based on the key measures of affordability, efficiency, fairness and responsiveness.

These reports objectively inform our stakeholders and the broader community about the operation of the scheme, the management of claims, as well as enhancing scheme awareness and understanding.

These publications, including the CTP scheme insights: 2021–22 report, are available through the MAIC website: maic.qld.gov.au/ctp-scheme-insights.

We support the Queensland Government Open Data Initiative. In 2021-22, we released 15 datasets in addition to CTP insurance scheme statistical insights and annual report statistics. Our Open Data sets are available at data.qld.gov.au/dataset/compulsory-third-party-ctp-statistics.

Motor Accident Insurance Commission financial summary

The operating result for MAIC for the year ended 30 June 2023 was a surplus of $2.1 million compared to the prior year’s operating deficit of $20.1 million. The increase was driven by an increase in levy and penalty income, a decrease in grants expenses and positive investment returns on financial assets.

The statutory insurance scheme levy per vehicle increased from $1.50 to $2.00 per annum from 1 July 2022. Penalties income increased by $2.2 million to $10.3 million.

The investment returns on financial assets were gains of $10.4 million compared to prior year’s losses of $2.8 million. This reflects improvements in the equity market.

Total expenses decreased by $3.1 million to $30.7 million in 2022–23. MAIC’s largest expense item relates to grants spend of $18.6 million for the continued funding of research programs to reduce the incidence and mitigate the effects of road trauma. The decrease in grants expense of $4.9 million was largely due to completion of a transitional rehabilitation service pilot and timing of continued funding of spinal cord therapy research. Details of grants funding are provided in Appendix 4.

Income (millions)

 

Expenses (millions)

 

Nominal Defendant financial summary

For the year ended 30 June 2023, the Nominal Defendant had a total income of $71.7 million and expenses of $42.9 million resulting in an operating surplus of $28.8 million, compared to the prior year’s operating deficit of $3.3 million.

The $32.1 million increase in the operating result was driven by positive investment returns on financial assets. Total investment gains on financial assets were $43.3 million compared to prior year’s losses of $12.7 million, reflecting an improvement in equity markets in 2022-2023.

The Nominal Defendant levy reduced from $8.00 to $5.00 per Class 1 vehicle in 2022-2023 and generated income of $28.6 million, representing a $7.9 million decrease from the prior year. Actuarial assessments at 30 June 2023 resulted in an increase of $1.1 million in reinsurance and other recoveries from prior year.

Total expenses increased from $25.9 million in 2021-2022, to $42.9 million in 2022-2023. This is primarily a result of higher claim costs. The Nominal Defendant’s gross outstanding claims liabilities were actuarially assessed at 30 June 2023 to be $134.4 million, an increase of $9.4 million from the prior year. Nominal Defendant claim payments were $26.9 million (prior year $32.4 million) and claim recoveries were $0.2 million (prior year $1.4 million).

The Nominal Defendant is in a fully funded position with financial assets more than sufficient to meet all obligations arising from the outstanding claims liability.

Income (millions)

Expenses (millions)