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 2018-19, 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).
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. The MAIB relies on professional advisors to provide forecasts, where appropriate. Major external influences include financial markets impacting investment revenue 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:
Deliver excellent service to claimants that is sustainable, supportive, progressive and equitable, in order to return claimants to their optimal pre-injury health as quickly as possible.
Maintain a well-funded scheme that maximises value for the State.
Deliver financial outcomes that optimise our risk/return objectives, demonstrate strong governance in order to provide long term sustainability of the business whilst balancing the needs of all stakeholders.
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.
Create the environment and provide the leadership to sustain a valued, motivated, engaged, accountable, client focused and supported workforce.
Continue to improve efficiency, accuracy and robustness of all business practices and systems to increase productivity, provide time back to all staff, enhance customer service and support decision making.
Establish and maintain MAIB’s standing within the community by engaging with all stakeholders, pursue strong community involvement and demonstrating MAIB as a good corporate citizen.
|Dividends paid ($M)||51.3||43.8||39.2||38.1|
|Tax equivalents paid ($M)||19.7||0.0||0.0||7.0|
|Financial result after tax ($M)||50.1||54.2||57.1||61.3|
|Funding ratio (%)||125.0||136.3||136.3||136.8|
|Return on equity(%)|
|– 1 Year||8.0||9.4||9.6||10.0|
|– 15 Years||8.0||18.9||16.5||14.6|
|Return on assets (%)|
|– 1 Year||3.0||3.9||3.9||4.0|
|– 15 Years||3.0||6.9||6.2||5.6|
|Return on investments (%)|
|– 15 Years||5.5||6.8||6.2||5.6|
|General claim rate per 1,000 vehicles||5.2||5.1||5.0||4.9|
|Serious claim rate per 1,000 vehicles||1.1||1.1||1.1||1.0|
|Number of outstanding claims||2,200||2,150||2,100||2,050|
|Client satisfaction (%)||75.0||76.0||77.0||78.0|
|Staff engagement (%)||75.0||76.0||77.0||78.0|
|Premium affordability of AWOTE (%)||23.0||22.0||21.0||20.0|
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 2018-19 financial year (to the extent that the targets are in the control of the MAIB).