New Rules of Engagement for CTP Insurers and their Agents
Effective 1 November 2014, new rules of engagement govern the way in which Licensed Compulsory Third Party (CTP) Greenslip insurers and their agents are expected to participate in the New South Wales Greenslip scheme. These new rules are captured in the updated Market Practices Guidelines which have been in effect since 2009.
Although the guidelines are not new, the intentions of the new and updated version are to articulate and enhance the levels of services to be offered to the customer within the application of the CTP Scheme in New South Wales by licensed insurers and their agents. The new version is to encourage flexibility in the provision of services, as well as to allow for further innovation by insurers within the scheme whilst enhancing competitiveness within a level playing field.
The guiding principles of the Market Practice Guidelines are as follows:
1. To act in good faith across all customers requiring a greenslip in New South Wales
2. Disallows any discrimination against any customer by way of price or process
3. Encourage transparency and practicality across the key processes of enquiring and purchasing a greenslip in New South Wales
4. Easy access to all greenslips offered by all insurers participating in the scheme
The Market Practice Guidelines go on to articulate what is expected across each of the guiding principles and a copy can be found here http://www.maa.nsw.gov.au/about-us/guidelines
We believe this is a great initiative for the CTP greenslip scheme in New South Wales which will enhance the manner in which insurers and their agents participate in what is a mandatory insurance purchase. Establishing and mandating a level playing field across the intermediary market is a key pillar to the ongoing credibility of our industry and is to be encouraged.
Although the insurance industry has long had key processes in place to deal with issues or complaints made by customers, the guidelines stipulate expectations for insurers which reconcile with these established industry processes including record keeping.
The new guidelines articulate how Insurer agents should declare the manner in which they advise the customer as to who they act for in the provision of quotations of CTP Greenslips as well as when policies are purchased. This enhancement to the guideline is to acknowledge the increasing web enabled quoting and purchasing platforms which are more and more prevalent in the industry. The intention is to provide clarity to the customer as to who they are dealing with when navigating such platforms."
Strong penalties apply for any breach of the Market Practice Guidelines in the CTP Greenslip scheme in New South Wales.