Subsidising unsafe road use

Motor accident regulation of compulsory third party (CTP) insurance in Australia and New Zealand has the effect of taxing safe-road use and subsidising unsafe road-use. This regulation has significant safety consequences as it inhibits insurers from encouraging road safety. In the UK, where the regulatory environment is different, there is a rapid growth in technology-enabled usage based insurance (UBI). UBI is being used to encourage safer driving, particularly among high risk groups. In the absence of reform to CTP regulation, there is a high possibility that in this decade Australia and New Zealand will fall significantly behind the UK in reducing the road toll.


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Filing Info

  • Accession Number: 01483748
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ITRD, ATRI
  • Created Date: Jun 13 2013 12:23PM