Suncorp, one of Australia’s largest insurers, has praised the overhaul of the Australian Capital Territory (ACT) Compulsory Third Party (CTP) market one year on from the implementation.
The success can be seen when looking at the motorist statistics, as ten per cent have switched insurers since July 2013, when the change came into effect. At that point, licences were granted for GIO, Apia and AAMI to enter the third party market, marking a substantial change for the industry.
“12 months on from providing our first CTP policy, it’s fair to say the monopoly that existed in the ACT has been broken,” said Suncorp executive Chris McHugh.
He went on to explain that the CTP monopoly, which once dominated the ACT market, no longer exists. This is good news for both insurers and customers, as the policy flexibility is now greater than before.
“Over 10 per cent of ACT motorists choosing a new CTP insurer in the first year is a result well above our expectations.”
GIO, Apia and AAMI all operate under the Suncorp Group, which includes a number of leading general insurance brands across Australia and New Zealand.
“There is more work to do, particularly in regard to explaining to motorists how they can save money through the rebates that are on offer,” he said.
Mr McHugh detailed that because motorists now have a better alternative with Suncorp, their presence in the ACT will almost certainly continue to grow.
Treasurer Andrew Barr spoke about the benefits of the change this year, explained that competition ensured a greater availability of innovative insurance products and more investment within the ACT.
There’s certainly no denying that the monopoly disruption means good news for both insurers and motorists in the ACT.