CTP competition in the ACT
The most significant event in the last five 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 February 2018 (when new premiums became effective for all insurers), the average CTP premium for a class 1 passenger vehicle has fallen by $40.23 or 6.8%.
The chart highlights the downward trend in premiums to 30 June 2017, as published in the Chief Minister, Treasury and Economic Development Directorate Annual Report 2016-17.
CTP Insurance Premiums over the period 15 July 2013 to 30 June 2017
The following graph shows the average market share over each of the financial years from 2013-14 when competition began, through to the end of the latest financial year of 2016-17. Market share is based on premiums collected by insurers.
Over the period shown in the graph, Suncorp’s leading brand – GIO – continued to gain market share rising to 35.4 per cent over the 2016-17 financial year [a gain of 4.5 percentage points compared to the market share over the 2015-16 financial year], albeit the rate of the gain slowed, compared with NRMA’s share declining to 56.0 per cent over the 2016-17 financial year (a decline of 3.8 percentage points compared to the market share over the 2015-16 financial year). AAMI and APIA continue to hold relatively small market shares at 7.8 per cent and 0.8 per cent over the 2016 17 financial year respectively.
Market Share from 2013-14 to 2016-17