❓ Mr. Wyatt questions the Treasurer about the financial impact of the Insurance Commission of Western Australia Amendment Bill 2013, specifically regarding revenue and third-party insurance costs. The Treasurer avoids providing specific figures, citing ongoing debate and the board's capacity to recommend a nil dividend.
AnsweredQoN 224Legislative Assembly
QuestionView source ↗
INSURANCE COMMISSION OF WESTERN AUSTRALIA AMENDMENT
BILL — STATE REVENUE
224. Mr B.S. WYATT to the Treasurer:
I refer to the Insurance Commission of Western Australia
Amendment Bill 2013, introduced today, that will require the Insurance
Commission of WA to pay dividends to the state government.
(1) What is
the expected additional annual revenue to the consolidated fund from this
decision?
(2) What is the
expected impact on third party insurance charges for each Western Australian
family?
BILL — STATE REVENUE
224. Mr B.S. WYATT to the Treasurer:
I refer to the Insurance Commission of Western Australia
Amendment Bill 2013, introduced today, that will require the Insurance
Commission of WA to pay dividends to the state government.
(1) What is
the expected additional annual revenue to the consolidated fund from this
decision?
(2) What is the
expected impact on third party insurance charges for each Western Australian
family?
AnswerView source ↗
(1)–(2)
Of course, we will be debating that legislation in the house, hopefully, next
week, but with the opposition's indulgence, we might bring it on
tomorrow.
Mr B.S. Wyatt :
Another urgent bill.
Mrs M.H. Roberts :
How about it being on the table for three weeks—standard practice?
Mr T.R. BUSWELL :
We will work through that.
The SPEAKER :
Members!
Mr T.R. BUSWELL :
Clearly, it is the government's view that, like all government trading
enterprises, the Insurance Commission should be subject to a dividend policy.
If the member reads the legislation he will see that the dividend policy for
the Insurance Commission reflects the dividend policy that applies to the Water
Corporation. The board of the Insurance Commission will have the capacity to
recommend a nil dividend if circumstances dictate. The board will have to take
on certain matters, including potential impacts on insurance premiums and
potential impacts on reserves of any decision it makes.
Mr M. McGowan :
What is the cost per family?
Mr T.R. BUSWELL :
There are cost pressures on insurance premiums. Perhaps the most significant
cost pressure on insurance premiums in this state is the expense and complexity
of the medical costs associated with dealing with victims of motor vehicle
accidents. That is the single biggest impact and the single biggest pressure on
prices. The advice I have received is that we anticipate the cost impact on
motorists will be minimal. The other major cost impact on motorists in this
state will be, potentially, from the introduction of the National Injury
Insurance Scheme in Western Australia. It will have a significant impact on
motorists. All we will be doing is applying consistent treatment to the
Insurance Commission of Western Australia as, indeed, we apply to other GTEs.
Of course, we will be debating that legislation in the house, hopefully, next
week, but with the opposition's indulgence, we might bring it on
tomorrow.
Mr B.S. Wyatt :
Another urgent bill.
Mrs M.H. Roberts :
How about it being on the table for three weeks—standard practice?
Mr T.R. BUSWELL :
We will work through that.
The SPEAKER :
Members!
Mr T.R. BUSWELL :
Clearly, it is the government's view that, like all government trading
enterprises, the Insurance Commission should be subject to a dividend policy.
If the member reads the legislation he will see that the dividend policy for
the Insurance Commission reflects the dividend policy that applies to the Water
Corporation. The board of the Insurance Commission will have the capacity to
recommend a nil dividend if circumstances dictate. The board will have to take
on certain matters, including potential impacts on insurance premiums and
potential impacts on reserves of any decision it makes.
Mr M. McGowan :
What is the cost per family?
Mr T.R. BUSWELL :
There are cost pressures on insurance premiums. Perhaps the most significant
cost pressure on insurance premiums in this state is the expense and complexity
of the medical costs associated with dealing with victims of motor vehicle
accidents. That is the single biggest impact and the single biggest pressure on
prices. The advice I have received is that we anticipate the cost impact on
motorists will be minimal. The other major cost impact on motorists in this
state will be, potentially, from the introduction of the National Injury
Insurance Scheme in Western Australia. It will have a significant impact on
motorists. All we will be doing is applying consistent treatment to the
Insurance Commission of Western Australia as, indeed, we apply to other GTEs.
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