SA motorists will have another compulsory third party (CTP) insurance option, as Youi enters the state’s market from July 1.

Youi CEO Hugo Schreuder says Youi’s entrance will help consumers by providing alternative options to existing insurers.

“Increasing competition is always the best way to ensure that providers are focused on providing high quality products and customer service within any given market,” Mr Schreuder said.

“The South Australian Government has demonstrated its commitment to providing motorists with increased choice by making it possible for new entrants to enter the State’s CTP market.”

The launch comes after Youi entered the NSW market in December 2020.

“South Australia offers a highly sustainable CTP scheme and, when we looked for opportunities to grow our market presence, we saw a strong alignment between the government and regulator’s vision for the market and our own customer-focused ethos,” he said.

The decision has been welcomed by the SA Government who echoed Mr Schreuder’s sentiments regarding competition between providers.

“The entry of a new CTP insurer to the market in South Australia is good news for motorists and will bring more competition to the market,” Treasurer Stephen Mullighan said.

Youi will become the fifth provider of CTP insurance in SA joining AAMI, Allianz, QBE, and SGIC.