From 30 June 2015, the calculations for NSW businesses with a premium > $30,000 change completely. The new key drivers of premium become:
– Wages and business activity
– Claim performance now benchmarked against scheme rather industry
– Return to Work related metrics
The most significant changes in 20+ years were intended to simplify NSW workers compensation, but they are being referred to as complex and confusing. Although various claim costs are no longer premium impacting, some of the more dramatic premium increases will result from how an individual business compares to the overall NSW scheme performance. Businesses that struggle with claims will be penalised.
REFORMS CAUSING PREMIUM INCREASES – Businesses with a 30 June 2015 or later workers compensation renewal under the old scheme would only have had 2 years of prior claims costs that impact premium. Under the new reforms, the prior 3 years are impacting. Despite, rehab, legal, investigation costs now being excluded, we have already seen this subtle change had a dramatic impact on premiums.
Another key change is the the comparison against scheme performance. Again we have seen clients who traditionally had a strong performance against their peers (i.e. competitors within the same industry) now perform poorly when compared to the overall scheme.
Under the new formula Return To Work (RTW) of injured workers is rewarded and the focus for businesses should now be how can they get their injured worker back to work in a quick and safe manner.
ABILITY GROUP’s businesses are built on the premise of providing specialist services and solutions to assist businesses of all sizes across industries focus on their core business while we manage their workers compensation program and related matters. Our specialist Injury/Claim Management service will assist clients in securing the various RTW incentives for businesses moving forward.