Page 713 - Week 02 - Thursday, 20 February 2020

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The value of commercial rates revenue assessed from 2017-18 to YTD 2019-20 is detailed in table 1.

Table 1: The commercial rates revenue ($’000, 2017-18 to YTD 2019-20)

Note 1: YTD represents annual billing in the first quarter

Motor vehicles—insurance
(Question No 2877)

Mr Coe asked the Treasurer, upon notice, on 29 November 2019:

(1) In relation to the new Motor Accident Injuries (MAI) scheme (a) what will be the accepted actual profit margins for insurance companies, (b) how have actual profit margins previously been calculated, (c) how will actual profit margins be calculated when premium filings for the new scheme are submitted, (d) who has been consulted in relation to insurer profit margins, (e) how do the (i) allowable, (ii) filed and (iii) actual profit margins compare to other Compulsory Third Party (CTP) schemes, (f) if an insurer posts actual profits above the allowable margins, what action will the MAI Commission take and (g) will actual profits above the allowable margins be returned to consumers.

(2) Given the long tailed nature of the CTP scheme, in relation to actual insurer profits (a) how many years does it take before the actual insurer profit is realised or can be accurately assessed, (b) what long term investigations, assessments or reviews have been undertaken on actual insurer profit margins in the ACT during the last five financial years to date and (i) when did the investigations, assessments or reviews take place, (ii) what years or length of time was investigated, assessed or reviewed and (iii) who undertook the investigation, assessment or review and what was the cost, (c) what investigations, assessments or reviews are planned to be undertaken on actual insurance profits for the current scheme once it ends and (i) when will the investigations, assessments or reviews take place, (ii) what years or length of time will be investigated, assessed or reviewed and (iii) who will undertake the investigation, assessment or review and what was the cost and (d) how many years after the new scheme commences will the MAI Commission be able to accurately assess actual insurer profits.

(3) What works have been undertaken in relation to the defined benefits information service under section 201 of the Motor Accident Injuries Act 2019 and (a) what assumptions underpin the provision of information services, such as the number of people likely to use the services and scope of services and (b) is the service proposed to be provided by an external entity; if so (i) how the procurement process will be undertaken and procurement methodology and (ii) what is expected cost and period of the contract.

(4) According to the Government commissioned EY report (Estimated costs of alternative benefit designs for the ACT’s Compulsory Third Party (CTP) Insurance Scheme – March 2018) there was an estimated average reduction of $130 in CTP premiums under the new scheme (a) what is the most current estimated premium saving to

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