Geoff Hughes Director—Strategy and Programming National Motor Vehicle Theft Reduction Council The Future for Insurance Write-offs in Australia

Presentation overview Brief snap shot of Stolen PLCs Vs Non-recoveries 5 major contributing factors to prevailing trend NMVTRC review of the management of repairable write-offs

Theft volumes at record low PLC Thefts and Non-recoveries

RWO example 1: 2005 VZ Commodore Maximum pre-damage value$25,000 Est cost of repairs>$20,000 Salvage value returned at auction$3,600 No. of equivalent undamaged vehicles for sale in NSW on carsales.com and price range402 from $14,990

RWO example 2: 2002 Toyota Corolla Maximum pre-damage value$14,800 Est cost of repairs>$15,000 Salvage value returned at auction$3,600 No. of equivalent undamaged vehicles for sale in NSW on carsales.com and price range407 from $10,499

Recovered strips in Bankstown MY04 Mazda 3 23SP Red Book $19-21K (W)

Insurer Damaged Cars Auction House Total Loss Cars Parts Recycle Industry New Parts Rebuilt RWO Unlicensed LMCT Criminal Re-builds Enthusiast Stolen Parts Distribution Repair Industry Industry Re-builds Public Insured Public Parts Distribution Flow Cha rt Legitimate Supply Illegal Supply

Initial WOVR impacts tail off PLC Non-recoveries by Age

Review elements Estimate size of criminal activity related to the re-use of RWOs Quantify impact on insurance premiums Examine the impact of a range of possible interventions Review the case for exemptions Assess environmental and road safety impacts Identify associated costs and benefits by industry sector Determine the overall cost/benefit Impact on insurance premiums Impact on community

Geoff Hughes Director—Strategy and Programming National Motor Vehicle Theft Reduction Council The Future for Insurance Write-offs in Australia