Private insurers should play a greater role in workers’ compensation and compulsory third party schemes, Suncorp says in its submission to the financial system inquiry.

“Personal injury premiums in Australia are worth more than $22.7 billion, and the vast majority of that is still underwritten by the public sector,” Suncorp Commercial Insurance CEO Anthony Day says.

“While catastrophic injury care should be publicly underwritten, greater private sector involvement in underwriting non-catastrophic injuries will deliver benefits to policyholders, injured people and taxpayers.”

It would remove risk from the balance sheets of state and territory governments, he says.

In 2004 a Productivity Commission review of workers’ compensation found private underwriting was preferred because competition creates efficiency. Yet no publicly underwritten personal injury schemes have moved to the private sector.

“The formation of the National Injury Insurance Scheme provides a tremendous opportunity to increase harmonisation across jurisdictions and introduce reforms that will improve the way personal injury insurance operates in Australia,” Mr Day says.