Motorists can look forward to saving about $19 on greenslips in 2022. The State Insurance Regulatory Authority will make insurers return their excess profits. A mechanism in the new NSW CTP scheme allows SIRA to step in when insurer profit goes over 10%.
What are excess insurer profits?
Excess insurer profits are any amount over 10%. SIRA has been working with insurers to find out how profitable it is to provide greenslips under the new CTP scheme. The new scheme started on 1 December 2017.
At first, nobody knew how many claims people might make under this scheme. Now it’s clear insurers have made $91 million in excess profits.
How will insurer profits be returned?
There will be a 35% reduction in the Fund Levy. It’s the fairest way to share savings because the the price of green slips depends on vehicle type and region.
What do motorists have to do?
You don’t need to do anything at all. When you buy your green slip during 2022, you will pay the final discounted Fund Levy.
Did you know the average green slip price for people using the greenslips.com.au Calculator has fallen? It was $699 in the 12 months before the new scheme started and is now $549 for the 12 months ending October 2021.
A previous version of this blog was published 29 November 2021.