House of Assembly Fifty-Third Parliament, Second Session (53-2) 53 2 Parliament of South Australia House of Assembly published Question Time Compulsory Third-Party Insurance Compulsory Third-Party Insurance Mr ODENWALDER House of Assembly Little Para Compulsory Third-Party Insurance Mr ODENWALDER (Little Para) (15:44): My question is to the Treasurer. Can the Treasurer provide an update on the implementation of the private sector provision of compulsory third-party insurance and the implications of not having an independent statutory CTP regulator? The Hon. A. KOUTSANTONIS House of Assembly West Torrens Minister for Finance Minister for State Development Minister for Mineral Resources and Energy The Hon. A. KOUTSANTONIS (West Torrens—Treasurer, Minister for Finance, Minister for State Development, Minister for Mineral Resources and Energy) (15:44): I'm pleased to advise the house that the compulsory third-party insurance reform project is progressing well in readiness for the transition on 1 July 2016—a brave new world. Under the new model, more than one million South Australian motorists will be allocated to one of the four private CTP providers—QBE, AAMI, SGIC and Allianz. This insurance certificate (or MR5) will display the name of each motorist's nominated insurer. It is important to note that for the first three years under the fixed-price model there is no advantage to being with any particular insurer. The price of insurance is the same and the compensation you receive, should you be injured, is the same regardless of your insurer. In year four, when the market is completely deregulated, motorists will be free to choose a provider of their choice and shop around for the best price. At this point we expect even more competition as other insurers, such as the RAA, consider entering the market. At the moment the four nominated insurers are working collaboratively with the government to provide a seamless transition for South Australian motorists to ensure business readiness from 1 July 2016. Importantly, I can say that motorists should expect no changes to the way that they pay for their CTP insurance or the way that they lodge a claim for CTP insurance in the unfortunate event that they suffer an injury. DPTI will continue to issue CTP insurance renewal notices as part of vehicle registration processes. The current payment methods will remain, including the EzyReg website and the app, and direct debit. All motorists have to do is to receive their registration notice in the mail and pay how they normally would. To make a claim motorists can still call the same number as they do now and they will be redirected to their nominated insurer. It is vitally important that as part of the CTP reform project we have an independent compulsory third-party regulator. The office of the CTP insurance regulator will assume the responsibility to set and control CTP premiums. The independent CTP regulator will be responsible for ensuring rules and guidelines are in place requiring private insurers to act appropriately and treat injured motorists in accordance with the state's CTP legislative framework. Although the necessary protections can still be achieved within the existing legislative framework of the Motor Vehicles Act 1959, this is not the preferred option as it does not bring the protections and independence of a CTP insurance regulator holding a statutory independent office. Instead, his or her powers will be enforced under legally binding agreements already entered into by the four approved insurers rather than directly under statute. The executive recruitment firm Korn Ferry has been engaged to conduct a national search and assist with the recruitment of the CTP insurance regulator. The position was advertised on 22 January 2016 and closed on 5 February 2016. I hope the opposition supports the government's push to have an independent statutory officer as our CTP regulator and supports the legislation in the upper house.