This decision only affects RACQ CTP insurance policies which are paid with your vehicle registration. It does not impact the Club’s other motor or home insurance products in any way or our commitment to providing Queenslanders with motor and home insurance now and in the future.

For more than 20 years, the Club has been a critical provider of CTP insurance, helping more than 25,000 people injured on the State’s roads.

Chief Executive Officer David Carter said while the Club had built a strong reputation for claims management and was proud of its industry leading claimant satisfaction, it was no longer viable to continue participating in the scheme.

“The scheme’s design allows for all participating insurers to be profitable, however, this assumes an equitable distribution of risk. In recent years, RACQ’s risk profile has worsened through no fault of our own, resulting in significant losses for the Club,” Mr Carter said.

“Scheme actuarial analysis shows that over the past five years, the difference between the most profitable and least profitable insurers in the scheme is 30 percentage points (25% versus -5% on average)*.

“In FY22, for every $100 of premium RACQ received, we paid $123 in claims and expenses due to the increased frequency and severity of claims that the Club receives relative to the scheme average. We saw little change in FY23 and in the absence of any changes to the way premium is shared between insurers, the outlook shows no signs of material improvement.”

Mr Carter reinforced that RACQ’s CTP losses did not relate to claims management but to how the scheme was operating, with analysis by the Motor Accident Insurance Commission’s (MAIC) actuary Taylor Fry confirming that claims management performance was comparable across the four scheme insurers.

“Importantly, RACQ’s departure is not a reflection on the premiums paid by motorists,” he said.

“Premiums paid by Queensland motorists are fair and do not need to increase and should not increase now because RACQ has withdrawn from the scheme."

Mr Carter said RACQ would have liked nothing more than to stay in the scheme and support the 1.2 million Queensland motorists who choose us as their preferred provider.

“However, following several years of raising concerns with the State Government and MAIC, it’s clear that the most recent scheme review is unlikely to achieve a level playing field or restore fairness in the scheme,” he said.

“The unfortunate reality is, despite the extensive steps we have taken over many years to improve our position, including our reinsurance arrangements, it is no longer viable for us to continue participating in the scheme.”

Mr Carter said the decision would not compromise or cause any disruption to CTP claimants with a claims process underway or who may have a claim in the future.

“RACQ will continue to provide a claims management service to ensure our existing CTP claimants continue to receive the same high standard of service we are known for, even after our exit from the scheme,” he said.

“We will cease offering CTP insurance cover from 1 October 2023 and RACQ has formally requested our licence be withdrawn. This is pending approval from MAIC.”

Mr Carter said this change did not affect the Club’s other insurance products in any way, or its commitment to providing Queenslanders with motor and home insurance now and in the future.

Your questions answered 

What is changing? 

RACQ will cease offering RACQ CTP insurance cover from 30 September 2023. From 1 October 2023, Queensland motorists will no longer be able to nominate RACQ as their CTP insurer. All existing RACQ CTP policies will remain in place until their next vehicle registration renewal at which point, they will be transitioned to another insurer. RACQ will work with MAIC to ensure a seamless transition. 

What does this mean for RACQ members?

This change only affects RACQ CTP insurance policies which are paid with your vehicle registration and covers the driver’s liability to people injured in a motor vehicle accident. It doesn’t cover the damage caused to or by the motorist’s vehicle – that damage is covered under RACQ Insurance’s suite of motor insurance products which remain unchanged.

RACQ CTP insurance is not a membership product, so this change will not impact your membership or any multi policy discounts you may have in place. We maintain our commitment to providing Queenslanders with motor and home insurance now and in the future. 

What does this mean for people who have a CTP claim underway?

This decision will not compromise or cause any disruption to RACQ CTP claimants with a claims process underway or who may have a claim in the future. We will continue to provide the same high standard of service to injured claimants that we are known for.

While this is a disappointing way to end our time in such a vital scheme for Queenslanders, RACQ will come out of this in a stronger position to continue supporting our members and communities.

For more information visit www.racq.com.au/insurance/ctp-scheme.

*Motor Accident Insurance Commission - Retrospective profit study of Queensland CTP premiums as at 5 June 2023. Page 5 Table 1.2