About the MAIB Statement of Corporate Intent

Statement of Corporate Intent

Statement of Corporate Intent

Statement of Corporate Intent 2019-2020

Introduction

This Statement of Corporate Intent (SCI) is a high level summary of the Corporate Plan (Plan) and includes a performance agreement between the Board of the MAIB and the Shareholding Ministers.

The performance agreement details the key financial and non-financial targets for the MAIB for 2019-20, as agreed between the Board and the Shareholding Ministers through the Corporate Planning process. It also details estimates for the three years thereafter.

The SCI has been prepared in accordance with the Government Business Enterprises Act 1995 (GBE Act).

Strategic Direction

The core business of the MAIB is to provide compulsory third party personal injury motor accident insurance and deliver appropriate compensation to people injured in motor accidents.

The three main drivers of business performance are premiums, investment income and claims expense. Major external influences include financial markets affecting investment returns and changes in prevailing bond yields impacting claims expense. While every attempt is made to monitor and navigate these external influences, it is not possible to predict annual profits with certainty, leaving forecasts open to significant volatility.

The following strategic goals are identified for the planning period:

Quality Client Service

Maximising recovery and everyday life through quality client service and focusing on what matters most to our clients as individuals.

Strong financial management

Maintain a well-funded scheme that maximises value for the State.

Deliver financial outcomes that optimise our risk/return objectives and demonstrate strong governance in order to provide long term sustainability.

Towards zero serious road casualties and trauma

Actively support accident prevention and injury management initiatives to assist in reducing the frequency, severity and impact of motor accidents in Tasmania.

Be a key influence on, and participant in, moving toward a future of zero serious road accident casualties, including funding appropriately targeted road safety services and initiatives and influencing good road safety outcomes.

Valued, motivated and supported workforce

Sustain a valued, motivated, engaged, accountable, client focused and supported workforce.

Enhanced client experience through continuous improvement

Continue to improve the efficiency, accuracy and robustness of all business practices and systems to increase productivity, gain time for staff in order to enhance client service and support decision making.

Community and stakeholder engagement

Establish and maintain MAIB’s standing within the community by actively engaging with all stakeholders and pursuing strong community involvement.

Performance Agreement

Financial returns to Government

Target Estimates
2019-20 2020-21  2021-22 2022-23
Dividends paid ($M) 91.5 36.3 34.8 28.8
Tax equivalents paid ($M) 0.0 0.0 7.9 23.9
Total ($M) 91.5 36.3 42.7 52.7

 

Financial targets

Target Estimates
2019-20 2020-21  2021-22 2022-23
Financial result after tax ($M) 48.9 53.4 60.6 65.1
Funding ratio (%) 125.0 128.8 129.7 130.8
Return on equity(%)
– 1 Year 8.0 10.4 11.3 11.5
– 15 Years 8.0 16.2 14.4 15.7
Return on assets (%)
– 1 Year 3.0 3.9 4.2 4.3
– 15 Years 3.0 6.0 5.4 5.9
Return on investments (%)
-1 Year 5.5 5.5 5.5 5.5
– 15 Years 5.5 6.3 5.8 6.8
Premium increase(%) <2.5 <2.5 <2.5 <2.5

 

Non-financial targets

Target Estimates
2019-20 2020-21  2021-22 2022-23
General claim rate per 1,000 vehicles 5.0 4.8 4.7 4.5
Serious claim rate per 1,000 vehicles 1.1 1.1 1.0 1.0
Number of outstanding claims 2,300 2,250 2,200 2,150
Client satisfaction (%) 76 77 78 79
Staff engagement (%) 76 77 78 79
Premium affordability of AWOTE (%) 21 21 20 20

 

Directors Statement of Corporate Intent and agreement of the Shareholding Ministers

The Board of the Motor Accidents Insurance Board agrees to provide the Shareholding Ministers with financial and other information as set out in this Statement of Corporate Intent.

In signing the Statement of Corporate Intent, the Board of the Motor Accidents Insurance Board commits to the targets proposed for the 2019-20 financial year (to the extent that the targets are in the control of the MAIB).