NSW CTP Scheme Innovation Report 31 December 2025

Innovation in the NSW Compulsory Third Party (CTP) Scheme

The Motor Accident Injuries Act 2017 enables the Motor Accident Guidelines to allow for adjustment of premiums and Fund levies to recognise insurer-led innovations that promote the objects of the Act.

This report provides an overview of innovation applications, their status and projected economic value.

Innovation applications

As of 31 December 2025, the Authority received 36 applications for Innovation Support under the TEPL Guidelines. Of these, 5 applications were withdrawn or abandoned by the insurer, and 11 applications were not progressed by the Authority due to ineligibility or insufficient alignment with the relevant approval criteria. There are 20 active applications, as detailed in Table 1.

Table 1: Distribution of active innovation applications

Innovation support journey under TEPL guidelines	Count of active innovation applications	Percentage of total active innovations (%)
Stage 1: Application submission	1	5%
Stage 2: Feedback and insurer's response	0	0%
Stage 3: Decision as to preliminary approval	1	5%
Stage 4: Implementation and assessment	13	65%
Stage 5: Decision as to final approval	0	0%
Stage 6: Ongoing assessment after final approval	5	25%
Total active applications	20	100%

All percentages are rounded to the nearest whole number.

Alignment to statutory objectives

As of 31 December 2025, all active innovations contribute to the statutory objective of scheme affordability and sustainability (s 1.3(2)(c), (d) and (e)). Table 2 shows the contribution of active innovations to other statutory objectives.

Table 2: Contribution of active innovations to other statutory objectives

Other statutory objectives	Contribution of active innovations (%)
Early and appropriate treatment, care, and financial support (s 1.3(2)(a) and (b))	41%
Collection and use of data (s 1.3(2)(h))	26%
Efficient, cost-effective, and fair claims resolution (s 1.3(2)(g))	21%
Fraud deterrence (s 1.3(2)(f))	13%

Innovations may contribute to multiple statutory objectives and are counted once within each relevant category. All percentages are rounded to the nearest whole number.

Projected economic value

Benefit-cost ratio (BCR) reflects the ratio of projected benefits to estimated implementation costs over a defined benefit realisation period. A BCR greater than 1.0 indicates that expected benefits exceed associated costs. For example, a BCR of 1.5 reflects a projected return of $1.50 in scheme value for every $1.00 invested.

For reporting, BCRs are grouped into value ranges to show the relative projected impact of each innovation while protecting commercially sensitive data.

Table 3: Projected economic value

Projected benefit-cost ratio (BCR)	Contribution of evaluated innovations (%)
BCR > 15.1	33%
BCR > 10.1 - 15.0	33%
BCR 5.1 - 10.0	0%
BCR 1.1 - 5.0	33%
BCR < 1.0	0%

Innovations that have been implemented, formally evaluated, and granted final approval are included. All percentages are rounded to the nearest whole number.