On Tuesday this week I met with the MAIC Insurance Commissioner, Mr Neil Singleton. The following is an email that I received from Mr Singleton subsequent to that meeting:
Benjamin, following on from our discussion this morning I advise the following re premiums.
For the quarter commencing 1 July 2014 for ITCE vehicles, Class 3 relativity has reduced from 22 times Class 1 risk premium to 21 times based on the relative improvement in taxi experience.
Taxi premiums at 1 July 2013 were $6,725.40 and from 1 July 2014 they will be $6,636.80 - a fall of $88.60 or 1.3%.
Over the same period Class 1 ITCE premiums have increased by 2.75%. Had taxi experience not improved and prices remained in line with Class 1, taxi premiums could have risen by as much as $185 .
It is a credit to TCQ and members that their focus on road safety initiatives is delivering real benefits.
MAIC remains committed to working with you and TCQ to support continued improvements in experience into the future.
Insurance Commission, Queensland Treasury & Trade
Phone: (07) 30356340, Mobile: 0457 566346
While it is not much and there is still a great deal of work to be done, it is a positive sign that things are trending in the right direction.
The long tail nature of insurance premiums and risk (around seven years) is such that the downward trend experienced this year is most likely as a result of the work undertaken by the Accident Watch Task Force (“AWTF”), headed up by TCQ, between 2002 and 2009. During this time accidents decreased from nearly 300 per annum to less than 90.
In our discussion Neil indicated that any evidence we can provide to indicate that the trend is sustainable will be of great benefit.
To that end, I would ask each of you to provide some basic information regarding the average age of your fleet, standard safety equipment (ABS, forward and rear braking sensors, etc) and average ANCAP ratings of your fleet to inform TCQ’s next submission to MAIC on factors impacting on premium components.
The next submission is due on 4 June 2014, so please provide any information by Friday 30 May 2014.
Your assistance, as always, is greatly appreciated.
Benjamin Wash CPA
Chief Executive Officer | Taxi Council Queensland