For the first time in nearly 15 years, South Australia’s workers' compensation system is undergoing a major review of its workers' compensation claims management providers. Return To Work SA has announced a procurement process that will reshape how claims are handled from July 2027, marking a significant shift for employers, injured workers, and the broader compensation landscape.
This development is more than just an administrative update, it signals a renewed focus on performance, recovery outcomes, and scheme sustainability. Employers across South Australia, and indeed the nation, should pay close attention to what this change means for injury management, workplace disruption, and the future of workers' compensation.
A Major Review After 15 Years
South Australia's workers' compensation system is preparing for a significant change, with Return To Work SA commencing a procurement process for new claims management providers for the first time in nearly 15 years.
Currently, claims management services are delivered by EML and Gallagher Bassett, but their contracts are set to expire on 30 June 2027. Return To Work SA has confirmed new arrangements will commence from 1 July 2027.
While this may appear to be an administrative update, it raises important questions for employers about claims management performance, return to work outcomes, and the broader future of workers compensation schemes across Australia.
Why Claims Management Matters
Effective workers' compensation claims management is the backbone of every compensation scheme. Claims managers coordinate:
- Injury claims administration
- Treatment approvals
- Weekly compensation payments
- Return to work planning
- Communication with employers and workers
- Management of complex claims
The quality of these services directly impacts injury outcomes, claim duration, and overall costs.
For employers, efficient claims management often means:
- Faster return to work outcomes
- Reduced workplace disruption
- Lower claim costs
- Improved injured worker experiences
- Better communication throughout recovery
Poorly managed claims, on the other hand, can delay recovery and increase disputes.
A Sign of Broader Industry Change
This procurement process reflects a growing national focus on claims performance, customer experience, and scheme sustainability. Workers compensation systems across Australia are under pressure from:
- Rising psychological injury claims
- Longer claim durations
- Increasing medical costs
- Workforce shortages
- Greater regulatory scrutiny
Return To Work SA’s decision to review claims management after almost 15 years highlights the importance of keeping schemes responsive to evolving workplace health challenges.
What Employers Can Learn
Regardless of which organisation manages a claim, employers remain critical to recovery success. Those achieving better outcomes typically focus on:
- Early Injury Reporting- Prompt notification reduces delays in treatment and recovery planning
- Strong Workplace Communication- Staying connected improves engagement and return to work outcomes
- Suitable Duties Programs- Offering meaningful duties supports recovery while maintaining workplace participation
- Supervisor Capability- Training frontline managers in injury management improves outcomes significantly
Claims Management Is Only One Piece of the Puzzle
While insurers and claims agents play a vital role, the best outcomes occur when employers actively participate. Successful organisations invest in:
- Effective work health and safety systems
- Psychosocial risk management
- Early intervention strategies
- Structured return to work programs
- Ongoing monitoring of injury trends
By combining prevention with recovery, employers reduce both the human and financial costs of workplace injuries.
What This Means for Australian Employers
The South Australian procurement process primarily affects employers in that jurisdiction, but it signals a broader national trend. Workers' compensation systems are evolving to meet changing workforce needs, with greater emphasis on service quality, recovery outcomes, and safe return to work.
For employers, this is a timely reminder to review injury management processes and ensure they can collaborate effectively with insurers, claims managers, and treating practitioners, regardless of future scheme changes.
Need Help?
ABILITY GROUP assists employers across Australia with:
- Workers compensation claims management
- Injury management and return to work coordination
- Psychosocial risk management
- Workplace health and safety consulting
Our experienced consultants work alongside employers to reduce claim costs, improve recovery outcomes, and ensure compliance with workers compensation and WHS obligations.
Contact the team at ABILITY GROUP today to discuss how we can help strengthen your organisation’s injury management and return to work capabilities.
Further Information:
Source: Insurance News
Title: SA workers’ comp to change claims line-up after 15-year run
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