Page 190 - Be Reasonable – Do It My Way , Peter E. Daly AM, My Story

CHAPTER 18 - INDUSTRY AFFAIRS, ICA AND MY BOARD CAREER TAKES OFF
different periods the opportunity has come to lobby and negotiate for the return of these insurance schemes to the private sector. Indeed we had some major successes in this regard, and probably the most enduring one was the privatisation of New South Wales CTP.
But these will always be difficult debates as the two key stakeholders in these schemes are the injured people and those who pay the premiums, whether that is employers or motorists and they generally don’t have a say; with lawyers, the medical profession and insurers all operating within the system and trying to make money.
At the end of the day the motivation for change usually comes when the State Governments incur significant financial losses and try to return the business to the insurance industry or the converse where the insurance industry is making what seems to be excessive profits the government is tempted to take it back again and do it better. There is a third scenario when the insurance industry finds it impossible to make profits and hands the problem back to government.
Flood
There is now a quasi-market solution to flood with most insurers offering flood cover on domestic property, albeit at a price. There are other models for doing it and we came close to implementing one of those in my day working with the Local Government Association of Victoria and with support from Brian Keane and AAMI in the background.
Fraud
This is a subject which insurers like to complain about but one which in my view is really a commercial and business problem and is up to them.
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