(c) the Authority’s motor accident filing template
Premium filing process Filing requirementsġ.9 A premium filing under Division 2.3 of the Act must be provided in soft copy and must include: (d) innovation and efficiencies in their business model.ġ.8 The Authority will take into account the objects of the Act by considering both qualitative and quantitative explanations when reviewing insurer filings. (c) market segmentation and distribution strategies (a) business plans and short, medium and long-term growth strategies On this basis, technical (actuarial) pricing will not be considered in isolation and an explanation by insurers is encouraged for non-technical pricing considerations, including: The Authority will closely scrutinise filed premiums against the objects of the Act and against any range of premiums for transitional policies it has determined under clause 2(3)(c) of Schedule 4 of the Act.ġ.7 In aligning with the competition and innovation objects, the Authority recognises that insurers will pursue their own particular business objectives that will be reflected as an integral part of each insurer’s pricing strategy. The premium framework recognises that this liability scheme, which is compulsory and privately underwritten, blends risk-based and community-rated approaches to assist with the object of affordability.ġ.6 Filed premiums must be adequate and not excessive (under section 2.22(1)(a) of the Act). (c) keep premiums affordable by ensuring that the profits realised by insurers do not exceed the amount that is sufficient to underwrite the relevant risk.ġ.5 To promote competition and innovation by insurers, the Authority allows risk-based pricing, but this must be done within limits in order to keep premiums affordable. (b) ensure the sustainability and affordability of the scheme and fair market practices (a) promote competition and innovation in the setting of premiums Guiding principlesġ.4 The primary objects under section 1.3 of the Act relating to a premium framework are to: Bonus has the same meaning as discount and malus has the same meaning as loading in this Part. Definitionsġ.3 In this Part of the Guidelines, bonus malus refers to a percentage decrease or increase in the insurer’s base premium using approved risk-rating factors. Commencement and revocation of previous Guidelinesġ.2 This Part of the Guidelines is effective for premium rate filings submitted by the filing insurer on or after 15 January 2022. They are issued by the State Insurance Regulatory Authority (the Authority). The Motor Accident Injuries Regulation 2017 (the Regulation) contains provisions that supplement the implementation and operation of the Act in a number of key areas.ĭetermination of insurance premiums for third-party policies Introductionġ.1 These Guidelines provide mechanisms for the regulation of insurance premiums matters under Part 2, Division 2.3 and clause 2 of Schedule 4 of the Motor Accident Injuries Act 2017 (NSW) (the Act). ensure the collection and use of data to facilitate the effective management of the CTP insurance scheme.encourage the early resolution of motor accident claims and the quick, cost‑effective and just resolution of disputes.deter fraud in connection with CTP insurance.promote competition and innovation in the setting of premiums for third-party policies, and provide the Authority with a role to ensure the sustainability and affordability of the compulsory third-party insurance scheme and fair market practices.keep premiums for third-party policies affordable by ensuring that profits achieved by insurers do not exceed the amount that is sufficient to underwrite the relevant risk and by limiting benefits payable for minor injuries.continue to make third-party bodily insurance compulsory for all owners of motor vehicles registered in NSW.provide early and ongoing financial support for persons injured in motor accidents.encourage early and appropriate treatment and care to achieve optimum recovery of persons from injuries sustained in motor accidents and to maximise their return to work or other activities.The objects of the Act, as described in section 1.3 are to: Injury or death to a person as a result of a motor accident occurring before 1 December 2017 is governed by either the Motor Accidents Act 1988or the Motor Accidents Compensation Act 1999 and the relevant Regulation and Guidelines made under the Motor Accidents Compensation Act 1999. The Motor Accident Injuries Act 2017 (the Act) establishes a scheme of CTP insurance and the provision of benefits and support relating to the death of, or injury to, people injured as a consequence of motor accidents in New South Wales (NSW) on or after 1 December 2017.
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