Green slips in NSW 'least affordable'

The NSW government is preparing to crack down on the state's green slip scheme, saying it's now the least affordable in the country.

Motorists pay around $600 or more for their green slip, with premiums forecast to jump a further 10 to 20 per cent this year.

Only 45 cents in every premium dollar has been returned in benefits to injured road users, the rest going towards scheme costs and insurance providers, Minister for Innovation and Better Regulation Victor Dominello said.

He's released a paper on his proposed compulsory third-party insurance reforms, which include options such as a crackdown on frauds and tighter rules on insurers.

"The scheme has become inefficient and unsustainable," Mr Dominello said on Friday.

The state government has also released an independent review of insurer profits that makes several recommendations, including changes to premium prices.