NSW State Insurance Regulatory Authority (SIRA) says it will recover a record $178.7 million in excess profit from compulsory third party (CTP) insurers in 2018 and 2019. 

SIRA activated the transitional excess profit and losses (TEPL) mechanism to claw back the excess profit made from the sale of compulsory Green Slips. CTP reforms in 2017 introduced TELP which allows SIRA to control the level of profit insurers earn on the sale of Green Slips. 

“SIRA is recovering a record $178.7 million in excess insurer profit earned in 2018 and 2019,” SIRA CEO Adam Dent said. 

“This amount represents pure profit taken by insurers, above a 10% profit margin, after injured road users receive the treatment and care they need. 

“In the face of rising cost pressures, the profit will be used to maintain the affordability of Green Slips.” 

He says that by recouping excess insurer profit NSW motorists will be less affected by levy changes that took place this month. 

The two levies that form part of the cost of Green Slips increased from January 15. The Motor Accident Injuries Treatment and Care Benefits Fund levy rose by 47.3% and the Lifetime Care and Support Authority Fund levy by 19.9%. 

“The $178.7 million of insurer profit being injected into the Motor Accidents Operational Fund will help offset the levy changes and maintain the savings introduced from the claw back of insurer profit in January 2022,” Mr Dent said. 

“Green Slip prices continue to be an average $19 lower as a result of the $91 million SIRA clawed back from insurers in the last profit assessment cycle.”