A parliamentary report on NSW’s compulsory third party (CTP) scheme has called for a review of “the high level of insurer profits”.

“Ongoing concerns have been raised about the level of insurer profits under the motor accidents scheme during each of the committee’s 12 reviews, including the current review,” the state’s Standing Committee on Law and Justice says.

In the year to September 30 2012, insurers posted record premium income under the Motor Accidents Authority (MAA) scheme, at $1.79 billion, with claims at $92 million, or 5% of premiums.

The MAA says NSW greenslips are among the country’s least affordable, rising from $421 in June 2010 to $505 in June last year for Sydney motorists aged 30-54.

There are seven insurers in the MAA, which are owned by five insurance groups.

In the second half of this year the authority will reconsider its premium model, to make the scheme less risky and more attractive for new insurers, according to the report.

It may also do more to let insurers partner with each other or incorporate risk pooling, to remove the incentive to avoid bad risks.

Last year the MAA warned greenslip prices are too high, having risen about 70% since 2008.

It proposed changing to no-fault or universal cover, to help more injured people.

Legislation for this was withdrawn last year when it faced failure in the upper house, but the committee report says many stakeholders want the reform to take place.

The MAA is now seeking regulatory reform which does not need parliamentary approval.

Last year the NSW Government directed the MAA to prepare a CTP pricing strategy, addressing issues such as insurer profits and costs and transparency in legal costs.

The proposed changes have drawn criticism from NSW Law Society President Ros Everett, who says the MAA wants to cap legal fees, reducing them by half.

The MAA has confirmed regulatory changes may take place, and background documents have been sent to stakeholders.

“A preliminary consultation process is under way with a range of stakeholder groups about potential modifications to the CTP regulations,” a spokesman told insuranceNEWS.com.au.