Other Financial Disclosures
Pricing Policies of Services Provided
Pricing Policies of CTP Insurance (Motor Vehicle Personal Injuries)
To comply with Section 3T of the Motor Vehicle (Third Party Insurance) Act 1943, the Insurance Commission is required to, at least once in each financial year, make an assessment of the extent to which the premium revenue, together with other income expected to be received, will be sufficient to meet the claims, costs and other expenses anticipated to arise or be incurred.
In making this assessment, an independent actuarial report is considered, together with any accumulated surplus or deficit existing in the Third Party Insurance Fund. Following this process, should a change in the Schedule of Premiums be required, the Board of Commissioners makes a recommendation to the Minister responsible for the Insurance Commission (the Schedule of Premiums can be viewed on the Insurance Commission's website).
RiskCover Fund Contributions Pricing Policy
Fund Contributions are set to ensure that funds collected together with investment returns are sufficient to pay for all liabilities. The key outcomes that RiskCover aims to achieve in setting premiums are:
- Equity for all public authorities;
- Transparency in the Fund Contributions setting methodology;
- Minimum cross-subsidisation;
- Protection against major surprises; and
- Incentives for risk management.
As agreed with the Department of Treasury, claims costs used to determine Fund Contributions do not include a prudential margin as the Western Australian Government underwrites the Fund. The RiskCover Fund is also excluded from the National Taxation Equivalent Regime.
Major Capital Projects Completed
The Insurance Commission's ability to recover in the event of a disaster has been significantly enhanced with the completion of the Disaster Recovery Upgrade project. All IT infrastructure used for Disaster Recovery has been upgraded and a base replica of the Insurance Commission's core systems has been established in the Disaster Recovery data centre. Data is now replicated at regular intervals each day which enables a rapid response in the event of a disaster.
A project to further upgrade and enhance RiskCover's RiskBase system has been completed. RiskBase is a risk management system which has been designed and developed for Western Australian Government agencies. Over 130 agencies are currently using the web enabled version of RiskBase to manage risks associated with the services and projects of the agency. The RiskBase system is also being used in the management of some major government projects. The RiskBase system is hosted by the Insurance Commission and is made available to all Western Australian Government agencies.
A comprehensive program of upgrades has been completed for all hardware, operating systems and databases. This has enabled the Insurance Commission to ensure that all IT Infrastructure is current, within vendor support and reliable for business use.
Major Capital Projects Incomplete
A project to migrate the core insurance systems off the mainframe and onto a contemporary open systems environment commenced at the beginning of the financial year and was completed in July 2012. Referred to as the Mainframe Migration Project, this will enable the Insurance Commission to leverage its core systems for a longer period than was previously envisaged, improve the ability to utilise the new Disaster Recovery capability, make changes and enhancements which were not previously possible to the systems, provide alternative support options and deliver significant financial benefits.
The RiskBase system is being further enhanced to cater for dynamic reporting and data privacy functionality.
The Insurance Commission's Online Crash Reporting Facility (OCRF) is being re-architected to run on a modern Services Oriented Architecture platform, improve the submission of crash reports online and improve reporting and receipt of electronic data.
A project to implement Image Capture and Workflow systems is being implemented to digitise and automate the handling of RiskCover's claims file system. This will deliver significant efficiencies in the RiskCover claims management function.