CTP premiums to rise in Tasmania
The Tasmanian Government’s Prices Oversight Commission has recommended an increase in compulsory third party (CTP) motor insurance premiums – the first in five years.
An average increase of 3.5% is suggested in a draft report by the commission on the pricing policies of the Motor Accidents Insurance Board, which operates the state’s CTP scheme.
Commissioner Glenn Appleyard says the report highlights the challenges facing the board, given the current economic climate and its effect on the scheme’s solvency and profitability.
“There has not been a premium increase since 2004 and the proposed increase for most motorists of around 3.5% will help to avoid sharp rises in premiums levied on motorists in future years,” he said.
“The proposed increase is modest in comparison to growth experienced in most other mainland schemes, where average premiums have increased by 5% over the past three years.”
An average increase of 3.5% is suggested in a draft report by the commission on the pricing policies of the Motor Accidents Insurance Board, which operates the state’s CTP scheme.
Commissioner Glenn Appleyard says the report highlights the challenges facing the board, given the current economic climate and its effect on the scheme’s solvency and profitability.
“There has not been a premium increase since 2004 and the proposed increase for most motorists of around 3.5% will help to avoid sharp rises in premiums levied on motorists in future years,” he said.
“The proposed increase is modest in comparison to growth experienced in most other mainland schemes, where average premiums have increased by 5% over the past three years.”