On the 4th of December 2015, icare (previously known as WorkCover NSW) announced further changes as a component of the NSW government ongoing NSW workers compensation reforms.
The latest reforms include benefit changes to injured employees in need of the highest benefits being those with a Whole Person Impairment (WPI) of >30%. In addition to this there were several other as well as additional changes.
Mental health issues are becoming increasingly common in Australian workplaces and from a workers compensation perspective they are 7-8 times more expensive than physical injury related claims. A recent PWC study found mental health issues cost Australian businesses $10.9B a year in lost productivity. The study also suggests poor mental health is likely to impact 1 in 5 employees. So what are the common mental health disorders?
Despite the NSW scheme changes taking effect back on 30 June 2015, the majority of medium to large NSW businesses are yet to receive their 2015/16 premium renewals. With iCare now authorising the NSW insurers to start processing 2015/16 renewal notices the challenge they now face is there is a 3-4 month backlog. Given the events over the last 4 months, we have covered this inside out. To help make these changes easier to understand, ABILITY GROUP provide a quick reference list below for our clients and partners:
1) Reforms are causing increases & Renewal Premium Increases
2) Renewal Capping & Appeals
3) New Premium Scheme Transition
The Minister of Finance, Dominic Perrottet, & the NSW Government have been driving reform to make it easier and cheaper to do business in NSW. Reforms have been diverse with workers compensation a beneficiary. As previously covered, workers compensation reforms are designed to reward the good and penalise the poor performers. Despite suggestions most businesses would pay lower premiums, the insurers have advised us that approximately 75% of medium to large NSW business will see increased 2015/16 Renewal premiums.
After identifying a client’s claim had deteriorated, we explained that the lost wages under the new workers compensation formula would result in material increases in their next 3 premiums. After subsequently being engaged to manage the claim, our Senior Injury Management Specialist identified key strategies, including engaging specialist rehabilitation support which returned the injured worker 4 weeks ahead of schedule.
Services issues can be a source of frustration for certain businesses when it comes to insurance. In workers compensation service responsiveness is key in minimising claim costs and resulting impacts to premiums. Small and medium businesses not receiving appropriate service can expect delays that can increase workers compensation related costs. Large businesses aren’t immune with service and support varying greatly between insurers and claims managers. Changing claims managers and unresponsiveness can be things of the past. These service issue were highlighted recently by the NSW Minister of Finance who is seeking to change the revolving door insurer’s face with staff. There is also a short video highlighting some of the common issues. When ABILITY GROUP are engaged, we work with our dedicated services teams to drive outcomes