CTP competition in the ACT
The most significant event over the last three years in the ACT CTP insurance scheme has been the introduction of competition, in practice from 15 July 2013.
The ACT Government established competition to, amongst other things, introduce innovative CTP insurance products; place downwards pressure on premiums; encourage more direct pathways to rehabilitation and treatment; and encourage a quicker return to health while preventing as many long-term injuries as possible.
Competition has delivered a greater choice in product offerings; better quality products such as at-fault driver cover and reduced premiums to motorists.
Since 15 July 2013, when competition became effective, to 1 October 2016 (when the new NRMA premium becomes effective), the average CTP premium for a class 1 passenger vehicle has fallen by $33.25 or 5.6%.
CTP Insurance Premiums over the period 15 July 2013 to 1 October 2016
The following graphs show the average market share for 2014-15 and 2015-16, based on premiums collected by insurers.
In their first year of operation, the Suncorp brands (GIO, AAMI and APIA) garnered an average of 10.2 per cent of the market in 2013-14. NRMA held the balance of the market share with 89.8 per cent.
Over 2014-15, the Suncorp’s brands share increased to 23.5 per cent, mainly attributable to the GIO brand. NRMA continued to hold the majority of the market share with 76.5 per cent.
Over 2015-16, the Suncorp’s brands share has further increased to 40.2 per cent. NRMA continues to hold the majority market share at 59.8 per cent.
Market Share over the 2014-15 financial year
Market Share over the 2015-16 financial year