From 1st March 2017 all new NSW workers compensation policies are required to be lodged directly to icare via their online portal. Businesses retain an option to select which insurer will manage their claims. Renewing policies from 30 April will transition.
A NSW Parliamentary review of Workers Compensation Scheme has been released providing recommendations to improve the NSW scheme. The report revealed the scheme is $1.87B in surplus, claims have reduced materially (110,000 in 2011/12 to 60,000 in 2015/16).
With continued market speculation, earlier today it has been confirmed that CGU will exit the NSW workers compensation scheme when their agency agreement with icare expires at the end of 2017.
Per our previous articles and as recently as our February 2017 Update, it was expected that the current 5 agents (Allianz, CGU, EML, GIO & QBE) would reduce to 3 agents for 2018.
With the announcement of CGU’s decision to exit the scheme questions will be asked as to if icare will be happy with 4 agents at approximately 45% market share or if they will pursue the anticipated reduction to 3 agents.
2016 saw significant change across workers compensation and in NSW in particular. 2017 looking ahead is already looking similar with a significant industry change taking effect in April’17 and a key announcement regarding insurers expected in May.
In August 2016 we communicated the Significant NSW icare Changes that will take affect in April 2017. This is probably the biggest ever NSW change workers compensation change with the NSW Government’s icare (previously known as WorkCover NSW) taking direct responsibility for NSW workers compensation premium processing, payments, credit and related matters. The impacts of these changes are yet to be seen and we continue to watch this space. Based on our discussions with icare it is our hope clients continue to receive the support they are used to and we remain confident that our clients and brokers will have comfort in our support.
In August 2016, our Significant NSW icare Changes article outlined the latest NSW workers compensation changes taking effect in 2017. icare (previously WorkCover NSW) will directly administer policy and billing for the NSW workers compensation scheme. Details since the original announcement have been sparse however we understand NSW businesses will be able to use either an online portal, icare Customer Support Centre or Service NSW to provide wage declarations, make premium related payments and related matters. Many businesses are concerned with the service they will receive following the change, however we see these changes as exciting. At ABILITY GROUP will continue to actively support our clients and brokers with personalise and responsive service.
icare’s latest announcement regarding the ongoing NSW workers compensation reforms hit the market earlier today. icare’s latest changes take effect in 2017 and will impact how businesses, and brokers, approach workers compensation in NSW. icare is “moving closer to our customers, putting their needs at the centre of everything we do”. The latest changes will transform workers compensation insurance in NSW by controlling how businesses (customers) buy and renew their policies via a new online portal.
We have already heard significant speculation regarding what these changes mean and how the industry will evolve as result. So what do these changes mean and therefore what can our clients and brokers expect?