2015/16 Renewal Processing Update
Our regular readers will know that the 30 June 2015 NSW workers compensation legislation changes have been a burning issue for the last 6 months or more. Many would also know that the legislation changes caused significant delays in for the NSW insurers being able to process the 2015/16 premium renewals as well as how many businesses have/will experience higher renewals under the new formula.
ABILITY GROUP is in regular discussion with the NSW insurers and are relieved to advise that we understand that close to 100% of the 30 June 2015 renewals have been processed, with only highly complex businesses outstanding. The insurers are now rapidly processing the July to December 2015 renewals which should now mean the majority of medium to large NSW businesses will receive their premiums calculated via the new formula. Business will also first hand understand if their premiums have increased or decreased as a result of the changes.
The main focus of the workers compensation is to enable injured workers to stay at work or return to work following a work related injury. Workplace rehabilitation plays an important role by involving timely intervention with appropriate and adequate service based needs to assist injured workers back into the workplace. We are pleased to say our specialist rehab business HEALTH ABILITY has a 100% return to work rate and can support businesses.
ABILITY GROUP were contacted by a broker who had a client distressed about their significant increase in premium due to the impact of the new premium formula. The client had a material claim during their 3 years of experience. Given their industry the Christmas period is crucial for financial viability and having to pay the higher premium could have had a dire consequence.
Despite the 
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.