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The National Disability Insurance Scheme A South Australian Perspective
Chris McHugh EGM Statutory Portfolio, Suncorp Commercial Insurance
1
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
National Disability Insurance Scheme (NDIS)
and
National Injury Insurance Scheme (NIIS)
2
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Key implications for Risk Managers in SA
3
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
NDIS & NIIS are coming
NDIS & NIIS
It’s national…
and coming to SA…
SA is well positioned for the NIIS
(CTP reforms)
SA Risk Industry
Opportunity to influence NIIS, new areas of coverage
1 2 3
Key topics to know around NIIS
4
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS CTP coverage?
New areas of NIIS coverage
Public vs Private underwriting of NIIS
To Fault or No-Fault?
5
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
That is the question
Only those not at fault
are covered
Everyone gets care
regardless of who is at
fault
Benefits Benefits
No-Fault
• Cheaper insurance
premiums
Fault
NDIS / NIIS
• Better public policy
• Focus on individualised
Care for lifetime (-vs-
maximising legal award)
• Reduces ‘friction costs’
Key topics to know around NIIS
6
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS CTP coverage?
New areas of NIIS coverage
Public vs Private underwriting of NIIS
NIIS is no-fault, which increases overall cost, & prices
7
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
However, more money gets to the people who need it
0
50
100
150
200
250
300
350
400
450
500
pre-NIIS Post-NIIS
$
Non-Catastrophic premium
Fault-based Catastrophic premium
No-Fault Catastrophic premium
EXAMPLE: CTP premiums – example impact of NIIS (No-Fault)
‘Friction Cost’ premium loading
Key topics to know around NIIS
8
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS CTP coverage?
New areas of NIIS coverage
Public vs Private underwriting of NIIS
Some CTP schemes are ready for NIIS – including SA
9
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
No-fault schemes (VIC, NT, TAS)
No-fault for catastrophic injury (NSW)
No-fault for catastrophic injury from 1 July 2014 (ACT, SA)
At-fault schemes (QLD, WA)
Lifetime Care (current + planned)
Key topics to know around NIIS
10
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS CTP coverage?
New areas of NIIS coverage
Public vs Private underwriting of NIIS
Catastrophic injuries nationally – by type
11
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
(Productivity Commission 2011)
49%
8%
32%
11%
NIIS coverage yet to be determined
But where covered, Fault will no longer need to be proved
Workplace accidents (Workers Comp already No-Fault
nationally)
Motor Vehicle (CTP moving to no-fault nationally)
Medical accidents (medical malpractice Fault-based)
General accidents (Liability insurance
Fault-based)
Key topics to know around NIIS
12
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS CTP coverage?
New areas of NIIS coverage
Public vs Private underwriting of NIIS
NIIS – makes privatisation easier
13
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Good public policy to manage catastrophic claims
Capital Requirements
High
Capital Requirements
Lower
Long–term claims
management
Short & Medium-
term claims
management
No-NIIS With NIIS
Risks and Rewards
14
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Risks & Rewards – things to watch…
15
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
• Fully funded
• Financially stable Sustainability
• Claims management
• Investing in independence Claims Cost
• Clear guidelines
• Strict adherence
Legislative clarity
• Effective rollout
• Sufficient carers and rehabilitation facilities? Cost inflation? Unmet needs?
Resources & coordination
South Australian implications
16
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Progress and emerging opportunities in SA
17
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
• Underway but vigilance required in implementation
NDIS Pilot in SA NIIS CTP SA
• Which risks are to be covered under NIIS?
Get the 40% other risks right
• Removing catastrophic risk makes the personal injury market more attractive to the private sector
Privatisation opportunities in
SA
Opportunity
to influence
Opportunity
to influence
Recap & conclusion
18
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Implications for Risk Managers in SA
NDIS & NIIS
It’s national…
and coming to SA…
SA is well positioned for the NIIS
(CTP reforms)
SA Risk Industry
Opportunity to influence NIIS design (new areas of coverage)
1 2 3
Thank you
Q&A
19
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance