Sun to set on insurer 'super profits'

ministerial media release | 04/11/2016

The NSW Government today released a discussion paper for feedback aimed at reining in excessive insurer profits and creating a fairer and more affordable scheme for NSW motorists and injured road users.

Currently only 45 cents in every Green Slip dollar goes to injured road users, with the rest going to scheme costs including insurer profits and legal fees.

Minister for Innovation and Better Regulation Victor Dominello said that insurer profits are unacceptably high and result in motorists paying higher Green Slip premiums.

“Since the current NSW CTP scheme was introduced in 1999, insurance companies have made an average profit margin of about 20 per cent,” he said.

"We are determined to put an end to the days of insurer super profits. Our reforms will provide Government with greater powers to regulate these profits so that more money goes to injured road users. The changes will also see a significant reduction in premiums for motorists.”

The discussion paper includes a number of regulatory and administrative changes that are already in train, as well as seeking feedback on additional legislative changes to wind back insurer profits to a reasonable level.

Mr Dominello also announced the appointment of Dr Graeme Innes AM as a member of the NSW State Insurance Regulatory Authority Board.

Dr Innes was Australia's Disability Discrimination Commissioner from December 2005 to July 2014 and during this time also served periods as Australia's Human Rights Commissioner and Race Discrimination Commissioner. Dr Innes was Chair of the Disability Advisory Council of Australia, and the first Chair of Vision Australia.

“Dr Innes has a wealth of experience both as a lawyer and disability advocate. He understands the challenges faced by those who are injured and will advocate for a scheme that protects injured road users and ensures they have optimal outcomes,” Mr Dominello said.

Further information on the discussion paper, including how to make a submission is available on siras website. Submissions close 25 November.