Page 3605 - Week 08 - Thursday, 19 August 2010
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premium across insurers under the new scheme to be made public. The risk premium for CTP is the base risk, or minimum risk, an insurer faces in providing CTP insurance in the ACT. In other words, it is the amount an insurer estimates it will require just to cover the projected cost of its claims. As a base premium, it does not include the administrative costs of each insurer for claims and injury management procedures, or its profit margin. The average CTP risk premium will, of course, reflect the respective market share of different insurers.
This is an important step for the ACT in allowing the public, in a market nearing competition, to hold insurers accountable for the effectiveness and efficiency of their claims and injury management systems. In this regard, the average risk premium to be weighted according to market share will be published by the CTP regulator in its annual report under the Financial Management Act 1996. I expect that this will act as a signal to insurers looking to enter the ACT CTP market that the ACT’s scheme will be effectively regulated and thus a more attractive proposition for competition.
Finally, the bill makes a housekeeping amendment to the act to expressly require the ACT Insurance Authority, as the nominal defendant, to keep and produce separate accounts in relation to its responsibilities as the nominal defendant under the CTP act. The nominal defendant will be required to have these accounts audited each year by the Auditor-General.
This bill builds on the reforms made in 2008 by the introduction of the new CTP act and I commend the bill to the Assembly.
Debate (on motion by Mr Smyth) adjourned to the next sitting.
Public Accounts—Standing Committee
Report 8
MS LE COUTEUR (Molonglo) (10.10): I present the following report:
Public Accounts—Standing Committee—Report 8—Review of Auditor-General’s Report No 5 of 2009: Administration of Employment Issues for Staff of Members of the ACT Legislative Assembly-, dated 3 August 2010, together with a copy of the extracts of the relevant minutes of proceedings.
I move:
That the report be noted.
I will just comment very briefly on this. Members will recall that in February this year, in my role as committee chair, I brought forward and moved a motion to allow the Assembly to consider the matters raised in the Auditor-General’s report. As members will, of course, be aware, there was a question as to whether or not, with the self-government act and conflict of interest, it was possible for anyone to consider it. In February this year, the following motion was moved:
… it is in the public interest to allow all members to participate in any future discussion of a matter, or vote on a question in relation to the Auditor-General’s
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