The recent NSW workers compensation changes have caused challenges across the industry since taking effect on 30 June 2015. Medium to large businesses with premiums over $30,000 are yet to receive their official 2015/16 Premium Renewals calculated under the new legislated formula. Unofficial data suggests 75% of businesses will see higher premiums. Most businesses are yet to therefore understand if their 2015/16 Renewal Premium will increase or decrease due to the numerous changes. Under the new formula, the key drivers of renewal premium changes will include:
- Claims performance comparison to over scheme rather than industry
- 3 prior years of claims costs rather than 2 years
- Claims wage related costs only becoming premium impacting
ABILITY GROUP has already helped numerous clients with higher 2015/16 Renewal Premiums.
2015-16 NSW Premium Renewals – ABILITY GROUP have seen businesses of all sizes across industries seeing higher 2015-16 renewal premiums. Despite the normal reasons for increase premium being higher wages or claims, we have particularly seen businesses impacted when their 2012-13 claims performance was poor. Driven by 3 prior years of claims now being included in renewal calculations, we have already seen several clients with premiums increasing dramatically.
Other significant impacts have been as a result of claims performance benchmark now being a comparison against the total scheme rather than previously against just those in the business’ specific industry. What this means is that a business might have had a better historical claims performance against their direct competitors, yet when compared against all employers/businesses in the scheme their performance is worse and consequently premiums are increased accordingly.
Businesses will also benefit from the removal of rehab, medical, investigation and legal claim related costs. This can have a positive effect in reducing renewal premiums.
Should you need help or advice, contact us to discuss your situation.