Compulsory third party (CTP) premiums in the ACT are more affordable since the market was opened up three years ago, according to Chief Minister Andrew Barr.

A review of the reforms shows drivers enjoy better product offerings at competitive premiums, he says.

“Premiums that cost less [this year] than in 2013 are a big win for Canberra drivers,” Mr Barr said.

NRMA Insurance monopolised the market before reforms cleared the way for competitors in July 2013. GIO, AAMI and Apia are now competing with NRMA Insurance.

Insurance Council of Australia CEO Rob Whelan says the results augur well for motorists in SA, which is opening up its CTP market from July.

“The review provides further evidence of the benefits to consumers of governments opening up statutory insurance schemes to competitive underwriting,” Mr Whelan said. “The ACT review notes increased competition has not only driven down premiums, it has also delivered better product choice as insurers seek an edge on policy features as well as price.”

QBE, AAMI, SGIC and Allianz will be CTP insurers in SA after the Motor Accident Commission relinquishes its role as sole provider on July 1.