How well are the SA CTP insurers performing?

how well

The South Australian CTP scheme was opened up to private insurers on 1 July 2016. For the next 3 years, it allocated each vehicle owner one of four CTP insurers. After 1 July 2019, they were free to make their own choice. The Regulator now provides information on just how well those insurers are managing claims.

How many claims are made?

There have been 10,642 claims made since the scheme was privatised in July 2016. Yet, even though the number of registered vehicles in SA has increased during that time, the number of claims made each year has fallen.

In fact, the likelihood of making a claim after an accident was 38% as at June 2019, compared to 48% as at June 2017.

Who makes claims in SA?

Women make 55% of all claims in SA, which is 20% more claims than men make.

People aged 25-54 make the majority of claims:

  • 19% of claims made by 25-34
  • 19% of claims made by 45-54
  • 17% of claims made by 35-44.

Drivers make 63% of claims and passengers make 22% of claims.

How well did the SA insurers perform?

The Regulator measures the time it takes for each insurer to manage a claim from the beginning to the end.

On average, it takes the insurers 403 days to complete a claim and SGIC is currently the most efficient:

  • AAMI 439 days
  • Allianz 385 days
  • QBE 399 days
  • SGIC 372 days

The Regulator provides claimant ratings on each insurer with registration renewal forms. Claimant ratings help vehicle owners make a more informed choice.

Current ratings are 75-79% approval of how well the insurers manage claims.

  • SGIC 79%
  • Allianz 78%
  • AAMI 77%
  • QBE 75%

Market share by premiums collected in SA reflects the same pattern:

  • SGIC 40%
  • Allianz 20%
  • AAMI 20%
  • QBE 19%

Before the market was opened up, each insurer had a fixed share of business. SGIC has doubled its share of the CTP market since vehicle owners were able to choose. Meanwhile, only QBE has stayed much the same at 19% (was 20%) of the market.

Insurers have paid out $135 million since the scheme was privatised.

How much is CTP insurance in SA?

Currently, for a vehicle in District 1 of SA, CTP costs around $290 without fees and levies:

SGIC $289.51
Allianz $294.39
AAMI $288.29
QBE $288.29

Since the scheme was privatised, the full CTP premium (including fees and levies) has fallen from around $600 to $500.

You can calculate your SA premium here.