A must read for all, the SIRA Review of Nominal Insurer (icare) by Independent Reviewer Ms Janet Dore published in December 2019 contains findings on the operation & sustainability of the icare. The report recommends significant steps for improvement to maintaining a fair & sustainable NSW workers compensation system.
Review of Nominal Insurer (Dore Report) – Ex EY partner Peter McCarthy previously claimed the NSW Nominal Insurer (icare) was in jeopardy. At the time Mr McCarthy told The Australian Financial Review “I have been advising or working in personal injuries schemes like icare around Australia and overseas for nearly 35 years and I have never seen a scheme deteriorate as much in such a short time frame.”.
The SIRA Report (referred to in the industry as the Dore Report), outlines a 21- Point Action Plan to help resolve significant issues identified by the independent review.
In publishing the report and the actions that flow from it, SIRA has highlighted a range of issues that need to be addressed in the interests of current and future customers and stakeholders of the workers compensation scheme. Priorities for improvement include early and safe return to work outcomes, claims management and improving premium transparency and volatility.
The new claims model led to a significant deterioration in the performance of the [nominal insurer] through poorer return to work rates, underwriting losses, no competition and therefore, concentration of risk.
While investment returns for icare have bridged the gap in underwriting losses, the current economic environment of low returns does not bode well.
While there have been some external factors…the primary driver for the decline is the implementation and operation of the new claims model implemented by icare
Ms Dore – Independent Reviewer of NSW workers compensation nominal insurer icare
The Review conducted immediately following significant NSW workers compensation transformation assessed icare progress and performance through audits as well as stakeholder consultation. icare has continued to introduce changes to the nominal insurer (NSW workers compensation scheme) operations during 2019 whilst the SIRA Independent Review was being conducted. ASIRA identifies further program of icare audits during 2020 will assess the impact of changes made since the Review audits and stakeholder consultation.
According to insurancenews.com.au
NSW state insurer icare’s new workers’ compensation claims model is the “primary driver” behind the scheme’s deteriorating performance, according to a highly critical report.
insurancenews.com.au
The final report of the independent Reviewer, Ms Janet Dore is also supported by 3 seperate Ernst & Young (EY) reports specifically focusing on:
If you would like to understand more or discuss the implications to your busines, please contact us.
Further information:
Source: State Insurance Regulator Authority (SIRA)
Title: Review of the nominal insurer
Read Time: 5-10 minutes
Source: insurancenew.com.au
Title: icare’s claims model blamed for workers’ comp scheme decline
Read Time: 2 minutes