Sweeping changes have been made to how insurance is delivered, processed and handled across both the public and private sectors as the novel coronavirus presents new challenges to the industry.
After private companies, including Suncorp, Allianz and QBE, announced financial relief measures to combat the pandemic - including delayed or waived payments, no interest increases and no-cost cancellation fees – the State Insurance Regulatory Authority (SIRA) has announced it is monitoring changes to the way CTP and Green Slip are being delivered.
“Insurers have introduced support packages for customers unable to pay their car insurance due to the COVID-19 pandemic. For CTP insurance, insurers such as Suncorp Insurance are offering an Eftpos card from March 30, 2020, to support customers who have lost jobs, business closure or reduced household income,” a SIRA spokesperson told Insurance Business Australia.
“SIRA encourages all customers to discuss any request for support with their insurer and encourages customers to shop around for the best price to meet their personal circumstances by visiting SIRA’s online Green Slip Check, which is available 24/7.”
However, the regulator admits complexities exist when trying to establish the full impact the pandemic has had on CTP because of the way it is delivered.
“CTP is ‘long tailed’ insurance. This means that it takes several years to know with certainty the true claims costs arising from injuries or fatalities to people involved in motor vehicle crashes,” the spokesperson added.
“SIRA is actively monitoring claims data, traffic volumes and accident rates and engaging with insurers. SIRA is reviewing the CTP premium parameters and if claims and injuries are reducing, SIRA will use its regulatory powers to reduce premiums.”
The regulator says, despite receiving less than five COVID-19 related inquiries per day, it is monitoring the situation and expects insurers to remain flexible and supportive of impacted people.
“To date, there has been a small decline in the volume of claims being lodged. SIRA’s CTP Assist service is receiving less than five COVID-19 related enquiries per day, mostly related to accessing treatment,” the spokesperson said.
“SIRA expects insurers to be flexible to ensure that injured people can continue to access benefits during the COVID-19 pandemic. SIRA has confirmed that all CTP insurers have robust business continuity plans in place, including increasing online customer support to maintain business as close to usual as is practical in the current environment.”
Despite the unforeseen circumstances brought on by the pandemic, SIRA says there has been no “significant changes” in CTP policy purchases.
“SIRA has not seen any significant changes in people purchasing CTP policies. For CTP, injured people can lodge claims up to three years following an accident,” it said. “SIRA is actively monitoring policy and claims data, traffic volumes and accident rates.”
But the regulator admits that the current data on claims is unreliable at this time because April data was not yet complete at the time contacted.
“Given that, claims reported in April 2020 appear lower than other months, however reporting is not yet complete for April. SIRA is monitoring this data to determine whether April’s lodged claims data is lower due to fewer accidents or delays in people submitting their claim forms, which will become clearer over the next few weeks,” the spokesperson said.
Among calls to support customers, SIRA also advocates digital communication methods between injured parties and insurers to avoid face-to-face contact.
“For people that have been injured in a motor vehicle accident, SIRA is encouraging the use of telehealth services for consultations between injured people and treatment providers to avoid face to face contact,” the spokesperson continued.
“If people are unable to see their general practitioner, they can now obtain a certificate of fitness to continue to receive benefits from their treating physiotherapist or psychologist.”
This isn’t the first time CTP and Green Slip insurance have faced industrial-sized changes – in 2017, prices were subject to significant drops after the reform scheme, seeing the average price of Green Slip reduce by around $146.
In addition to reduced premiums, customers were also refunded over $215 million between December 01, 2017 and September 30, 2019.
