The SA Government has announced the four insurers that will provide compulsory third party (CTP) cover from July, as the state moves to a competitive CTP market.

The Motor Accident Commission will cease its role as the sole provider from July 1, with more than 1 million SA motorists allocated to one of QBE, AAMI, SGIC or Allianz.

State Treasurer Tom Koutsantonis says motorists can expect a “seamless transition”.

“Under the market-based model, for the first three years CTP prices will be fixed to CPI-like increases – about 3% on average, each year,” he said.

“The Department of Planning, Transport and Infrastructure will continue to issue CTP insurance renewal notices as part of the vehicle registration process.

“SA motorists will also benefit [from] an industry-specific CTP regulator, which will ensure fair and affordable CTP insurance and protection for motorists.”

After three years CTP provision will move to a fully competitive market, with other approved insurers able to enter.

The commission will continue its road safety awareness work, and its role of nominal defendant, where it acts as “insurer of last resort” to people injured in accidents by unregistered, uninsured or unidentified motor vehicles.