tac scheme update - actuaries institute · 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15. actual...

TAC Scheme Update

Bruce Crossett – Head of Claims © Transport Accident Commission Victoria

This presentation has been prepared for the Actuaries Institute 2013 Injury Schemes Seminar.

The Institute Council wishes it to be understood that opinions put forward herein are not necessarily those of the Institute and the Council is not responsible for those opinions.

Why we’re here o TAC scheme is maturing o We’re operating in a changing

environment and new trends continue to emerge across both Road Safety and Claims

1987 2001 2009

Scheme Viability

Client Experience

Client Outcomes

Harry

Scheme overview 2012 2013 change

Registered vehicles 4.42m 4.52m +2.3%

Premium revenue $1.385b $1.457b +5.2%

Claims frequency 3.74 3.59 -4%

Funding Ratio 70.8% 84.9% +19.9%

Claims Liabilities $10.103b $10.030b -0.7%

>14 day hosp claims 908 897 -1.2%

What we’re doing

The Strategy aims to:

o reduce deaths by more than 30%; and o reduce serious injuries by more than 30%

Innovations in Road Safety • Distracted road users were the target of a TAC campaign launched in Feb

2013, aiming to highlight the dangers of taking your eyes of the road

What we’re doing in Claims

Recovery Helping our clients back to work and

health sooner

Independence Maximising our

client’s independence

Service Streamlining our processes to make it easier for

clients

Key Liabilities

o Low growth in care have resulted in positive releases for Attendant Care

o For more recent accident years, injury mix and payment experience have been positive

o Granting rate and Unit cost performing well

o Common Law lodgements continue to be a concern for the scheme

Client Focus Client Experience - Client Feedback Survey

7.35 7.31 7.337.63

7.707.85

8.058.25

8.408.50

7.457.65 7.63 7.70

6.606.807.007.207.407.607.808.008.208.408.60

2009-10 2010-11 2011-12 2012-13 2013-14 2014-15Actual 2009 targets Revised targets

Client Outcomes Index

61.8

63.8

71

66 66.7 67.3

65

6769

565860626466687072

2011-12 2012-13 2013-14 2014-15 2015-16Feb-13 Actual 12/13 Targets Revised Target

o Record client satisfaction for the organisation in 2012-13 of 7.63

o For the 0-12 month client cohort we achieved 8.6

o Introduced Client Outcomes Index in 2012-13

o Provides a platform for improved achievement in 2013-14

Challenges in a changing environment

Focus on efficiencyFocus on efficiency

Reducing death and trauma on Victoria’s roadsReducing death and trauma on Victoria’s roads

Shifting community expectationsShifting community expectations

Improving the skills and capabilities of our peopleImproving the skills and capabilities of our people

Liability control, particularly in Common Law, Attendant care and Paramedical benefitsLiability control, particularly in Common Law, Attendant care and Paramedical benefits

BEYOND

Designing our future together

Hilary

A final word…..