MOTOR ACCIDENTS INSURANCE BOARD. Peter Roche Chief Executive Officer

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Quentin Bridges
10 years ago
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1 MOTOR ACCIDENTS INSURANCE BOARD Peter Roche Chief Executive Officer 1

2 Scope of Presentation Scheme Features 4 Year Financial Snapshot Claim Management Accident Prevention 2

3 Scheme Features - History Commenced 1 December th birthday next week No-fault and common law - no-fault benefits not previously available Long term care benefits - commenced May benefits available irrespective of fault 3

benefits not previously available Long term care benefits

4 Scheme Features - Overview Regulated premiums environment - Govt Prices Oversight Commission Review (Now every 4 years) Stable claim benefit/environment - stable claim numbers - damages payments stable - small annual increase in vehicle numbers Long-term liabilities a key risk - average duration of long-term liability claims approx. 20 years 4

numbers - damages payments stable - small annual increase in vehicle numbers Long-term

5 Financial Snapshot 2005/ /09 Net Premium Revenue ($'000) 140, , ,000 80,000 60,000 40,000 20, Year 5

6 Financial Snapshot 2005/ /09 Profit (Before Tax) 200, ,000 ($'000) 100,000 50, , Year 6

7 Financial Snapshot 2005/ /09 Investment Return % Year 7

8 Financial Snapshot 2005/ /09 Net Investment Revenue $ M Year 8

9 Financial Snapshot 30 June 2009 Asset Allocations at 30 June % 1% 19% 17% 20% 5% 8% 2% Australian equities International equities Emerging markets Property Infrastructure Cash Fixed interest Illiquid debt 9

10 Financial Snapshot 2005/ /09 Tax/Dividend Paid (Cash Basis) $ M Year 10

11 Financial Snapshot 2005/ /09 Net Claim Liabilities $ M Year 11

12 Financial Snapshot 2005/ /09 Solvency Level % Year 12

13 Financial Snapshot 2005/ /09 Motor Car Premium Premium ($) Year 13

14 Claims Management Model Statutory no-fault benefits with caps* and limits Common law Complementary to one another * Cap does not apply to long-term care. 14

15 Claims Management (cont) Early claims reporting: - Police - Newspapers - Hospital 15

16 Claims Management Approach Guidance and direction for staff Reasonable case loads Well developed IT system 16

17 Claims Management (cont) Specialist services outsourced, e.g. legal, rehabilitation investigation and facilities Service level agreements 17

18 Proactive Approach to Claim Management Deliver benefits promptly - Applications for benefits processed on day of receipt - average duration of common law claim years Robust assessment of entitlements - Eligibility criteria must be met - IT system flags caps and limits 18

19 Proactive Approach to Claim Management (cont.) Regular reviews - Peer review of all claims Stock of open claims at 30 June 2009 reduced to 3,

20 Proactive Approach to Claim Management (cont.) Open Claims Number 4,000 3,500 3,000 2,500 2,000 1,500 1, Year 20

21 Daily Care Claims Segregated management of daily care claims - includes potential daily care claims and children with head injuries Small caseloads - caseloads of approx. 50 claims 21

22 Daily Care Claims (cont.) Reserves reviewed on each claim at least annually - Actuarial valuation based on individual claims Standardised assessments of injury related care and support needs being introduced early

23 Daily Care Claims (cont) Purpose built housing in Hobart, Launceston and the North West Coast 23

24 Average Claim Size Scheduled Benefits $ Year Average PTD per claim Average OSL per claim * Average claim size is based on 31/12/08 values and includes paid and outstanding. 24

25 Average Claim Size Common Law $ 50,000 40,000 30,000 20,000 10, Year Average PTD per claim Average OSL per claim * Average claim size is based on 31/12/08 values and includes paid and outstanding. 25

26 Average Claim Size Future Care $ 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000, Year Average PTD per claim Average OSL per claim * Average claim size is based on 31/12/08 values and includes paid and outstanding. 26

27 Claim Frequency Claim Frequency Year 27 No. of Claims per 1,000 Vehicles

28 Accident Prevention Road Safety Task Force since 1996 Motorcycle Safety Strategy Infrastructure 28

29 Road Safety Task Force Partnership Police, DIER, MAIB Review undertaken every three years Funding in excess of $25 million since

30 1,200 1, Serious Injuries Serious Claims V's Registered Vehicles 600, , , , , , Number of Serious Claims Received Number Of Registered Vehicles

31 Motorcycle Safety Strategy $500,000 commitment over three years Subsidised refresher training Education campaign 31

32 Infrastructure Investment of $3.5 million over three years in State Black Spot Program From 2006/07: - Erection of wire rope barriers on highways - Eleven Local Government projects 32

33 Summary 35 years of successful operation Prudent management of business Stable claim numbers and costs Fully funded scheme 33

Western Australian CTP Scheme Update

Western Australian CTP Scheme Update Fab Zanuttigh - Manager Motor Vehicle Personal Injury Division Insurance Commission of Western Australia April 2007 INTRODUCTION Highlights - Past 3 Financial Years