National

NSW regulator cracks down on CTP insurers

By AAP Newswire

Dec 21, 2022

A file photo of cars on a highway — The profits of car accident insurers will be used to help keep green slips affordable for drivers. -AAP Image

The NSW insurance regulator is recouping $178.7 million in excess profit from Compulsory Third Party (CTP) insurers into a fund to keep green slips affordable.

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The State Insurance Regulatory Authority's head Adam Dent said the record clawback from insurers earned on the sale of compulsory green slips dates back to 2018 and 2019.

"This amount represents pure profit taken by insurers, above a 10 per cent profit margin, after injured road users receive the treatment and care they need," he said on Wednesday.

"In the face of rising cost pressures, the profit will be used to maintain the affordability of green slips."

Two levies that form part of the cost of green slips are set to increase from next month.

The Motor Accident Injuries Treatment and Care Benefits Fund levy will rise by 47.3 per cent and the Lifetime Care and Support Authority Fund levy will increase by 19.9 per cent.

By recouping excess insurer profit NSW motorists will be less affected by the levy changes, Mr Dent said.

The crackdown on insurer behaviour was possible through the introduction of a mechanism in the 2017 CTP reforms.

By AAP Newswire

Australian Associated Press