About the MAIB Statement of Corporate Intent

Statement of Corporate Intent

Statement of Corporate Intent

Statement of Corporate Intent

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 2022-23, as agreed between the Board and the Shareholding Ministers through the Corporate Planning process.

The SCI has been prepared in accordance with the Government Business Enterprises Act 1995 (GBE Act). The SCI has taken account of the potential impacts of COVID-19 on the MAIB for 2022-23.

Strategic Direction

The core business of the MAIB is to provide compulsory third party personal injury motor accident insurance and deliver appropriate support for people impacted by road trauma in Tasmania.

The three main drivers of business performance are premiums, investment income and claims expense. Major external influences include claim rates and severity, 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:

Client Centred Outcomes
Recognising and delivering client centred outcomes and acting fairly within our scheme. Maximising recovery and everyday life through quality client service and focusing on what matters most to our clients as individuals.

Maintain Financial Stability
Maintain a well-funded scheme that maximises value for the State and provides sustainability.
Deliver financial outcomes that optimise our risk/return objectives, demonstrate strong governance and are sustainable.

Contributing to making Tasmanian roads safer
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 injuries, including by funding appropriately targeted road safety services and initiatives and influencing good road safety outcomes.

Safe and supported workplace
Provide a safe and supportive workplace, where people are valued, motivated, engaged, accountable and focused on client centred outcomes.

Enhanced client experience through continuous improvement
Continue to improve efficiency, accuracy and robustness of business practices and systems to increase productivity to gain time for staff to enhance client service and support decision making.

Community, provider and stakeholder engagement
Making a valued contribution to the Tasmanian community. Partnering with quality service providers to achieve client centered outcomes.

Performance Agreement

Financial returns to Government

Target
Estimates
2022-23
2023-24
2024-25
2025-26
Dividends paid ($M)
30.9
24.1
23.6
25.4
Tax equivalents paid ($M)
18.4
0.0
0.0
0.0
Total ($M)
49.3
24.1

23.6

25.4


Financial targets

Target
Estimates
2022-23
2023-24
2024-25
2025-26
Financial result after tax ($M)
32.0
25.3
25.4
25.9
Funding ratio (%)
125.0
131.0
130.2
129.4
Return on equity(%)
– 1 Year
8.0
4.5
4.5
4.6
– 15 Years
8.0
16.1
14.4
13.5
Return on assets (%)
– 1 Year
3.0
1.6
1.5
1.5
– 15 Years
3.0
6.1
5.5
5.2
Return on investments (%)
-1 Year
4.5
5.5
5.5
5.5
– 15 Years
4.5
7.1
6.7
6.5
Premium increase(%)
<2.5
<2.5
<2.5
<2.5


Non-financial targets

Target
Estimates
2022-23
2023-24
2024-25
2025-26
General claim rate per 1,000 vehicles
3.8
3.6
3.5
3.4
Serious claim rate per 1,000 vehicles
1.1
1.1
1.0
1.0
Number of outstanding claims
< 2,400
2,350
2,350
2,350
Client satisfaction (%)
> 78
79
80
81
Premium affordability of AWOTE (%)
18.0
17.9
17.9
17.8


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 2022-23 financial year (to the extent that the targets are in the control of the MAIB).