NSW will invite submissions on the performance of compulsory third party (CTP) reforms introduced to streamline claims payments, reduce fraud and lower costs.

The Motor Accident Injuries Act and related regulations and guidelines came into effect in 2017 and included a requirement for a review to be tabled in Parliament by December 1 this year.

The State Insurance Regulatory Authority (SIRA) says the NSW Government has appointed Clayton Utz and Deloitte to review the arrangements.

Issues will include whether insurers receive a “fair but not excessive profit margin”, the performance of insurers, the timeliness of benefits provided, the proportion of each dollar of premium collected that directly benefits injured people and whether further changes are needed.

A discussion paper will be published on the SIRA website inviting submissions.

“Injured people, organisations and members of the public will be given an opportunity to contribute to the statutory review,” SIRA says.

The CTP reforms included no-fault payments and the winding back of lump sum compensation except for people with long-term and more significant injuries.

SIRA has previously said the system based on lump sum payments had been vulnerable to fraudulent behaviour and exaggerated claims.