Allianz rejects move to charge riskier drivers more

Allianz rejects move to charge riskier drivers more | Insurance Business

Allianz rejects move to charge riskier drivers more
One of the four insurers in Queensland's compulsory third-party (CTP) system has spoken out against the idea of charging riskier drivers more for CTP insurance due to lack of evidence to back the move.

The risk-premium idea has been proposed by a state government-backed committee, saying that charging riskier drivers more – within a set band of prices – instead of the current system where all car drivers pay the same could potentially spur “better outcomes for motorists”.

The committee was first to admit, however, that it was “difficult to predict the extent to which the level of CTP premiums would directly influence driver behaviour, noting the evidence on this is limited”.

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Allianz told The Courier-Mail: “There is no evidence that modestly higher premiums for less capable or safety conscious drivers has any impact on driver behaviour or accidents that translates into improved CTP claims experience. The current… approach underpins Queensland’s position as the leading State in terms of [CTP] affordability.”

Fellow CTP insurer QBE was in support of such risk ratings, saying it would promote competition and “allow insurers to reward safer drivers with lower premiums.”

The risk-premium idea is among the various committee recommendations under review by the government, which were mainly targeted at slashing insurer profits which regulatory data found to be four times more than intended by the scheme, the report said.

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