The Regulator has released its Final Report and media release in relation to its investigation into the MAIB's pricing policies. The Final Report contains the Regulator's recommendations for maximum premiums from 1 December 2013 to 30 November 2017.
Amendment to Finity's Final Report
Finity's final report has been amended to correct one error and one omission with regards to state/territory solvency targets.
Specifically, Table 3.1 corrects Western Australia's target solvency to 25 per cent (above outstanding claims liabilities) from 0 per cent and now includes Northern Territories target solvency of 25 per cent. This has also been updated in Figure 3.3.
Furthermore text in the report that referred to the MAIB having a target solvency "toward the upper end of the range of those adopted by government owned CTP schemes" has been removed.
The Regulator released its Draft Report and media release in relation to its investigation into the MAIB's pricing policies on 12 April 2013.
The Draft Report presented a number of proposed recommendations including the average premium that the MAIB can earn and also the prices for each premium class. The Draft Report also presented a number of items for comment.
The Draft Report took into account the MAIB's preliminary submission in response to the Terms of Reference, other submissions provided by stakeholders and advice from the Regulator's actuary consultant Finity final report.
The Regulator invited submissions on the items for comment in the Draft Report, including any other matters relevant to the Terms of Reference.
Submissions were due on 20 May 2013.
The Regulator received five submissions.
MAIB Submission May 2013 (614Kb)
Taylor Fry Submission MAIB May 2013 (173Kb)
Mason Pearson Submission MAIB May 2013 (61Kb)
Ulysses Club Submission MAIB May 2013 (63Kb)
Tasmanian Motorcycle Council Submission MAIB May 2013 (25Kb)
Motor Accidents Insurance Board's preliminary submission
The Motor Accidents Insurance Board (MAIB) lodged its preliminary submission in February 2013.
The Regulator invited submissions on matters raised in the MAIB's preliminary submission and in the Terms of Reference.
The Regulator received two submissions.
Anthony Miller Submission MAIB 2013 (57Kb)
Robert Westley Submission MAIB 2013 (484Kb)
Request and Terms of Reference
On 17 December 2012, having obtained the agreement of the Minister administering the Motor Accidents (Liabilities and Compensation) Act 1973, the Minister for Finance sent a Request and Terms of Reference to the Regulator to conduct an investigation into the MAIB's pricing policies.
The Regulator took a similar approach to that utilised in previous investigations. This included receiving and analysing the MAIB's submission, releasing a draft report for comment and then a final report having considered submissions made on the draft report. The Regulator engaged the services of actuarial and insurance consultants, Finity Consulting Pty Ltd, to assist with the review. Finity prepared a draft report to assist the Regulator in making its recommendations to Government.
Timetable for the investigation
The timetable for the investigation was as follows.
|February 2013||Received and published the MAIB's preliminary submission|
|February / March 2013||Consulted on matters raised in the MAIB's preliminary submission and in the Terms of Reference|
|April 2013||Released the Regulator's draft report and Finity's final report|
|April / May 2013||Sought submissions on the Regulator's draft report|
|July 2013||Released the Regulator's final report|