18/9/01
The State Government today announced the annual results for the Insurance Commission of Western Australia. The results show Western Australia's compulsory third party insurance fund is prudently managed and therefore continues to maintain the lowest premium for a family motor car in Australia.
Government Enterprises Minister Nick Griffiths tabled the financial statements of the Insurance Commission for the 2000-01 financial year in Parliament today.
Mr Griffiths said costs had been kept to a minimum for WA motorists under the Insurance Commission's Compulsory Third Party Scheme.
"As a result of good management and a reduced frequency in claims, the Insurance Commission has ensured that WA motorists pay the lowest rates for a private motor vehicle, compared with alternative schemes in other parts of Australia," he said.
"At the same time, the Insurance Commission manages to provide benefits to claimants that are equal to or even better than other interstate schemes."
The financial statements show an operating profit for 2000-01 of $119.7 million and a surplus of assets over liabilities of $119.9 million at year end.
The Third Party Insurance Fund ended the year with an after tax operating profit of $122.5 million. This lifted the fund's solvency ratio from 103 per cent to 114 per cent. The result was achieved through a continuation of the pleasing trend in reduced claims frequency and a slowing rate of increase in the average value of claims payments.
Mr Griffiths said the Insurance Commission was an active sponsor of community initiatives to promote road safety.
"It is important that the commission plays a prominent role in promoting prevention and research programs that relate to its business and also help to prevent accidents and injury on our roads," he said.
"During the year, the Insurance Commission spent $2.7 million on sponsorship of road safety programs. It also provided funding to the Foundation for Advanced Medical Research to conduct research into mesothelioma, an asbestos-related disease."
Insurance Commission chairman Michael Wright said the year's results were pleasing and would help stabilise future premium increases.
"Prudent claims management, road safety and fraud prevention initiatives are recognised as contributing to the Third Party Insurance Fund's ongoing financial improvement," Mr Wright said.
"The increased solvency ratio will assist in both stabilising the premiums and constraining future premium increases, provided periodic downturns in investments remain cyclical."
Media contact: Melissa Robinson 9222 8950 (w)
