A NSW Upper House Committee is currently enquiring into the injury insurance scheme, profitability and claims, and the role of The Motor Accident Authority in NSW.
As a result of the enquiry, there has been press about the difference between profits the insurers are estimating for the purpose of setting premiums and profits the insurers are actually making. There has also been a focus on the number of claims.
Premiums, profitability and claims
Information on Premiums, Profitability and Claims to 2010 is set out below.
| Average Premium – June Quarter |
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| Sydney Metro Passenger Vehicles |
All NSW Vehicles |
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| % Change |
% Change |
|||
| 2003 | $339.99 | $328.00 | ||
| 2004 |
$343.00 | 1.2% | $332.00 | 1.2% |
| 2005 |
$324.00 | -5.5% | $320.00 | -3.6% |
| 2006 |
$314.00 | -3.1% | $309.00 | -3.4% |
| 2007 |
$322.00 | 2.5% | $318.00 | 2.9% |
| 2008 |
$329.00 | 2.2% | $324.00 | 1.9% |
| 2009 | $389.00 | 18.2% | $372.00 | 14.8% |
| 2010 | $428.00 | 10.0% | $404.00 | 8.6% |
| 2003/2010 | 26.3% | 23.2% | ||
Premiums listed in the table exclude GST.
Premiums are from MAA Annual Reports, Scheme Performance Reports.
Profit margins and profit and loss
| Weighted Average Profit Margin in Insurer Filings Year Ending 30 June |
Average Estimate of Discounted Profit and Loss as % of Premium Year Ending 30 September |
|
| 2000 | 7.7% | 30.0% |
| 2001 |
7.9% | 28.7% |
| 2002 |
8.2% | 31.0% |
| 2003 |
8.2% | 24.3% |
| 2004 |
8.5% | 27.0% |
| 2005 |
8.7% | 21.3% |
| 2006 |
8.7% | 18.0% |
| 2007 | 6.0% | 12.3% |
| 2008 | 7.7% | 5.0% |
| 2009 | 8.1% | -1.3% |
| Average | 8.0% | 19.6% |
Weighted Average Profit Margins are from MAA Annual Reports, Scheme Performance Reports for 2004-2005 & 2009-2010. 2010 data for Estimate of Discounted Profit and Loss is not reported.
Average Estimates of discounted Profit & Loss are from MAA Annual Report, Scheme Performance Report for 2009-2010.
Number of claims
| Estimated Ultimate Number of Claims Year Ending 30 September |
|
| 2000 | 16,844 |
| 2001 |
15,502 |
| 2002 |
14,055 |
| 2003 |
12,885 |
| 2004 |
12,290 |
| 2005 |
11,757 |
| 2006 |
11,167 |
| 2007 | 10,729 |
| 2008 | 10,220 |
| 2009 | 11,732 |
| Average | 12,718 |
Estimated Ultimate Number of Claims are from MAA Annual Reports, Scheme Performance Reports for 2004-2005 & 2009-2010. Reported 2010 data is not for a full year and is therefore not included
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