The lowest metropolitan premium for compulsory third party (CTP) injury motor insurance in NSW has fallen by $7 to $299 plus GST. In country areas it is down to $233, according to figures from NSW Special Minister of State John Della Bosca.

It’s a great improvement on the nightmare premiums of the mid-’90s, and the Insurance Council of Australia (ICA) says the falling price of green slips underlines how effective legislative reform can be in keeping insurance affordable. 

ICA Deputy CEO Dallas Booth says major reforms introduced by the NSW Government over the past five years after claims costs blew out have cut the average cost of premiums by more than $100.

“These reforms become effective over a number of years as the changes flow through the legal system,” he said.

And Mr Booth also sees the same sort of thing happening with liability premiums once legal reforms have had a chance to bite. “Similarly, the industry is confident that when reforms of liability laws are complete, policyholders will see similar benefits. Anecdotal evidence suggests the market is already improving because of expectations that reforms already introduced by the states and territories will deliver lower claims costs.”