Suncorp is Australia’s largest personal injury insurer and this area is headed by Chris McHugh. Chris joined Suncorp in 2001 and became Executive General Manager Statutory Portfolio & Underwriting Management in 2010. This division runs Suncorp’s Compulsory Third Party and Workers’ Compensation operations. In this role Mr McHugh, on behalf of Suncorp and the insurance industry, is involved in moves to reform various state personal injury schemes. Prior to joining Suncorp, Mr McHugh had a successful 12-year career with the NSW public service, where he worked in the areas of strategy, planning, performance review and project management. Chris holds a Bachelor of Commerce and Masters of Business Administration.

1. The National Disability Insurance Scheme
A South Australian Perspective
Chris McHugh
EGM Statutory Portfolio, Suncorp Commercial Insurance
1
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance

2. National Disability Insurance Scheme (NDIS)
and
National Injury Insurance Scheme (NIIS)
2
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance

3. Key implications for Risk Managers in SA
3
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
NDIS & NIIS are coming
NDIS & NIIS
It’s national…
and coming to
SA…
SA is well
positioned for
the NIIS
(CTP reforms)
SA Risk
Industry
Opportunity to
influence NIIS,
new areas of
coverage
1 2 3

4. Key topics to know around NIIS
4
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS
CTP coverage?
New areas of NIIS coverage
Public vs Private
underwriting of NIIS

5. To Fault or No-Fault?
5
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
That is the question
Only those not at fault
are covered
Everyone gets care
regardless of who is at
fault
Benefits Benefits
No-Fault
• Cheaper insurance
premiums
Fault
NDIS / NIIS
• Better public policy
• Focus on individualised
Care for lifetime (-vs-
maximising legal award)
• Reduces ‘friction costs’

6. Key topics to know around NIIS
6
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS
CTP coverage?
New areas of NIIS coverage
Public vs Private
underwriting of NIIS

7. NIIS is no-fault, which increases overall cost, & prices
7
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
However, more money gets to the people who need it
0
50
100
150
200
250
300
350
400
450
500
pre-NIIS Post-NIIS
$
Non-Catastrophic premium
Fault-based Catastrophic premium
No-Fault Catastrophic premium
EXAMPLE: CTP premiums – example impact of NIIS (No-Fault)
‘Friction Cost’ premium loading

8. Key topics to know around NIIS
8
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS
CTP coverage?
New areas of NIIS coverage
Public vs Private
underwriting of NIIS

9. Some CTP schemes are ready for NIIS – including SA
9
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
No-fault schemes (VIC, NT, TAS)
No-fault for catastrophic injury
(NSW)
No-fault for catastrophic injury from
1 July 2014 (ACT, SA)
At-fault schemes (QLD, WA)
Lifetime Care (current + planned)

10. Key topics to know around NIIS
10
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS
CTP coverage?
New areas of NIIS coverage
Public vs Private
underwriting of NIIS

11. Catastrophic injuries nationally – by type
11
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
(Productivity Commission 2011)
49%
8%
32%
11%
NIIS coverage yet to be
determined
But where covered,
Fault will no longer
need to be proved
Workplace accidents
(Workers Comp already No-Fault
nationally)
Motor Vehicle
(CTP moving to no-
fault nationally)
Medical accidents
(medical malpractice Fault-based)
General accidents
(Liability insurance
Fault-based)

12. Key topics to know around NIIS
12
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Fault
Pricing
Where we are at with NIIS
CTP coverage?
New areas of NIIS coverage
Public vs Private
underwriting of NIIS

13. NIIS – makes privatisation easier
13
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Good public policy to manage catastrophic claims
Capital Requirements
High
Capital Requirements
Lower
Long–term claims
management
Short & Medium-
term claims
management
No-NIIS With NIIS

14. Risks and Rewards
14
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance

15. Risks & Rewards – things to watch…
15
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
• Fully funded
• Financially stableSustainability
• Claims management
• Investing in independenceClaims Cost
• Clear guidelines
• Strict adherence
Legislative
clarity
• Effective rollout
• Sufficient carers and rehabilitation
facilities? Cost inflation? Unmet needs?
Resources &
coordination

16. South Australian implications
16
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance

17. Progress and emerging opportunities in SA
17
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
• Underway but vigilance required in
implementation
NDIS Pilot in SA
NIIS CTP SA
• Which risks are to be covered under
NIIS?
Get the 40%
other risks right
• Removing catastrophic risk makes the
personal injury market more attractive
to the private sector
Privatisation
opportunities in
SA
Opportunity
to influence
Opportunity
to influence

18. Recap & conclusion
18
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance
Implications for Risk Managers in SA
NDIS & NIIS
It’s national…
and coming to
SA…
SA is well
positioned for
the NIIS
(CTP reforms)
SA Risk
Industry
Opportunity to
influence NIIS
design (new
areas of
coverage)
1 2 3

19. Thank you
Q&A
19
Australia’s Largest Personal Injury Insurer
Suncorp Commercial Insurance