Ctp

[Skexis]

Why do we now have to nominate a CTP insurer for rego purposes? Just got my renewal through and all the amounts are the same. What's the point?

[geopaj]

It’s another example of an S.A. liberal government “brilliant” privatisation plan!

[spot01]

It’s another example of an S.A. liberal government “brilliant” privatisation plan!

I think Turbo Tom & Labour did this as part of the privatisation of the MAC, but then gave all the CTP business to one company, ie, created a monopoly. It has now been opened up to competitive companies & whilst premiums are sometimes similar, they are lower.

[kod10]

I get an extra discount for my house and car insurance if I also have the insurer as my ctp. ie extra policies equal extra discounts.

[nj swb]

Why do we now have to nominate a CTP insurer for rego purposes? Just got my renewal through and all the amounts are the same. What's the point?

Competition. Previously, it was all SGIC - no choice, no incentive for them to provide good service. Somewhere in the paperwork with the renewal should be some "ratings" information - how the competing companies "rate" with their customers.

I've been sticking with SGIC to keep the money in SA - SA needs all the money it can get at the moment!

[Jasonmc73]

QLD same all the same price

[spot01]

Competition. Previously, it was all SGIC - no choice, no incentive for them to provide good service. Somewhere in the paperwork with the renewal should be some "ratings" information - how the competing companies "rate" with their customers.

I've been sticking with SGIC to keep the money in SA - SA needs all the money it can get at the moment!

SGIC hasn't been SA owned for a long time - it is now part of one of the big East Coast insurers.

[MSF]

You are probably at the start of what happened in NSW many years ago...

When NSW moved to a deregulated scheme in 1988 (Was previously all handled by GIO), the Gumbyment granted licences to 11 different insurers for CTP.
Their portfolio share was determined by their size at the time - For example - NRMA got 32% ( Largest share as they were the largest Private Motor Insurer at the time)

For the first two years of the scheme, ALL the prices were the same to allow the new players to get a feel for the loss ratios and claims etc, then after that period the scheme allowed for premium variances, However there were regulations to stipulate that the Cheapest premium any company could offer was not to be less than X% (I think it was 15%) of their most expensive. This was to make sure that even the Worst of the Worst drivers could still afford to get CTP and thus, register their vehicles. (Under the GIO monopoly, there was no "premium for risk - ie, everyone paid the same and the only variances were the Garaging location ( City or Country etc)

Now there are only 5 insurers left that offer it, NRMA, GIO, AAMI, Allianz and QBE and there are LOTS of different rating factors such as Age of Driver, Garaging Postcode, Demerit Points, Who your Comprehensive policy is with etc...)


So, that's probably the fun you are about to experience

SGIC hasn't been SA owned for a long time - it is now part of one of the big East Coast insurers.

Yes, SGIC is wholey owned by IAG (Insurance Australia Group) who were the company created when NRMA was demutialised. They now control CGU, Westfarmers, NRMA, Swann, SGIO and SGIC - They also Underwrite a heap of front line stuff like Coles Insurance)

So Your SA money isn't staying in SA unfortunately...