An independent committee has reviewed Queensland’s compulsory third party insurance scheme and found the scheme is strong and in good health.
Initially announced in April last year, the review measured the scheme against four guiding principles – affordability, efficiency, fairness and flexibility.
Following extensive consultation with representative bodies, insurers, lawyers, researchers and motorists, the review committee concluded that there was not a need for major reform in Queensland.
While the committee noted extensive changes were not required, they did identify 19 recommendations – seven support retaining existing scheme features, seven which MAIC can immediately progress, and the remaining five recommendations which require further investigation.
Key recommendations include:
- taking immediate action to address the issue of high insurer profits
- improving consumer awareness of choice of CTP insurer both at renewal and when purchasing a vehicle, and
- implementing a legal fee reporting model to allow for greater transparency of scheme efficiency.
MAIC supports all 19 recommendations and will work closely with industry on implementation.
The review committee was led by Mr Henry Smerdon AM, former Under Treasurer and current Chancellor of Griffith University. Joining Henry on the committee was Ms Jo Blades and Mr Rowan Ward.
More information about the 2016 CTP Scheme Review can be accessed here.