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.
icare recently held NSW briefing sessions to update consultants / brokers on the upcoming changes regarding the insourcing of premium & credit/payment functions from insurers. A phased approach is hoped to facilitate a smooth transition. In the next few weeks the new portal will be launched for new business only, this is for new companies taking out a policy for the first time. The next major phase of change is currently scheduled for April, where all client renewals will be managed through icare for the financial year 2017-18.
Like other audits, a workers compensation wage audit can be very stressful & confronting. Businesses face having to pay higher unpaid premiums, late payment fees & the actual audit costs. We assist businesses of all sizes either pre or post wage audits reduce their financial exposure.
iCare and its scheme agents have legal rights to audit employer’s records to ensure they are paying the correct premium.
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.