The National Disability Insurance Scheme A South Australian Perspective - Chris McHugh

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



Key implications for Risk Managers in SA

3



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



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



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’


6



Fault

Pricing




NIIS is no-fault, which increases overall cost, & prices

7



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


8



Fault

Pricing




Some CTP schemes are ready for NIIS – including SA

9



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)


10



Fault

Pricing




Catastrophic injuries nationally – by type

11



(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)


12



Fault

Pricing




NIIS – makes privatisation easier

13



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



Risks & Rewards – things to watch…

15



• 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



Progress and emerging opportunities in SA

17



• 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



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



Date post:	20-Aug-2015
Category:	Healthcare
Upload:	risk-management-institution-of-australasia
View:	122 times
Download:	0 times

The National Disability Insurance Scheme A South Australian Perspective - Chris McHugh

Healthcare