Insurers have taken different approaches in submissions to a review of NSW compulsory third party (CTP) premiums for the point-to-point transport market.

The review presents a range of options to tackle the emergence of ride-sharing services and create a level playing field with traditional forms of point-to-point transport such as taxis.

Suncorp supports option one – implementing a new vehicle class for ride-sharing services.

“We know that point-to-point vehicles are at higher risk of being involved in an accident than passenger vehicles, and at less risk than taxis,” it says. “However, the level of risk associated with ride-sharing vehicles, as a cohort, is yet to be determined.

“Creating a new class for ride-sharing vehicles will allow insurers to set premiums that more accurately reflect the risk of this cohort of motorists, as claims data specific to ride-sharing vehicles can be collected and analysed over time.”

IAG’s preference is option three – the deregulation of point-to-point premiums to allow risk rating. This option “allows insurers to be innovative in their rating practices; has the flexibility to withstand further technological advancement; has the potential to encourage safer behaviours and safer vehicles; and treats point-to-point operators equitably”.

QBE says its preferred approach is an adjusted version of option five, featuring the collection of a levy on each fare.

“An additional insurance levy could be applied by replacing the existing fixed-price CTP with a smaller fixed component and a variable component based on actual usage.

“This could be a simple dollars-per-trip loading, or a more complicated loading based on distance, time of day and location. This approach would ensure a level playing field between point-to-point vehicle operators and would more effectively recognise the individual risk characteristics that are presented by individual operators.”

The Insurance Council of Australia (ICA) says it has “consistently called for ride-share vehicles to be separately classified”.

“One of the advantages of separate classification is that the class can remain fully funded as premium remains aligned to risk,” it says.

ICA also suggests investigating a usage-based premium, to distinguish between vehicles used primarily for commercial purposes and those used primarily in a private capacity.

The NSW Government is expected to announce its response to consultation later this year.