Bob Carr steps down tomorrow as Premier of NSW, and with him goes one of the few political leaders who really understand insurance.

Mr Carr, 57, is respected in the industry for his work in compulsory third party (CTP) insurance and getting the tort reform ball rolling. That doesn’t always mean he has seen eye-to-eye with the industry. In May his government raised stamp duty on general insurance policies from 5% to 9%.

But he will be remembered most for his leadership during the so-called public liability insurance crisis of 2002, when he restricted lawyers’ advertising and set tort reform into motion, even when his Labor Party colleagues in other states were dubious.

Most observers see his role in the tort reform process – and his willingness to stare down angry lawyer groups – as crucial to the process.

Not surprisingly, the Insurance Council of Australia has paid tribute to Mr Carr. Executive Director Alan Mason said the NSW Government under Mr Carr “has taken a keen interest in insurance issues over many years, particularly in the areas of CTP and other personal injury reforms”.

“Based on years of successful management of the CTP scheme, he restored the concept of personal responsibility and the balance between an injured person’s right to appropriate compensation and the ability of the community to get access to affordable public liability cover.”