NSW Workers Compensation Scheme Update
Insurance & Care NSW (icare), the Public Financial Enterprise body responsible for managing workers compensation underwriting throughout the state, have recently announced significant changes to their scheme agent agreements going forward.
As it stands, there are five scheme agents who have the authority to manage policy and pricing structure, credit terms, and claims management. This has allowed customers to choose their provider based on experience, expertise, and claims management skills.
With effect from the scheme renewal on 31 December this year, there will be a shift in authority and availability of agents. The scope of services provided by agents will be limited to claims management only, and the panel will be reduced from five to three. Icare will manage the policy, pricing, and credit control functions directly.
The five agents currently operating under the scheme are GIO (AAI Ltd), QBE Insurance (Australia) Ltd, EML (Employers Mutual Limited), Allianz Australia Insurance Ltd, and CGU Insurance Ltd.
CGU have not submitted a renewal application, signaling their withdrawal from the scheme with effect from 31 December 2017. The decision to end their 30 year involvement with the scheme is based on a shortfall in anticipated return going forward, indicating that it is no longer viable for them to participate.
The remaining four insurers have proceeded with their application to icare, and we await the announcement as to who will be the three acting agents under the scheme for the period 2018/20.
What does this mean?
From 1st March 2017 all new business underwriting, pricing, and credit control functions for Workers Compensation insurance throughout NSW will be managed by icare directly with renewals expected to follow over the coming months.
Employers will continue to have the flexibility to select their agent from the authorised panel for claims management services under the new agent contract.
Lockton are committed to ensuring all agents continue to meet our client’s expectations. Our focus will remain to be on the provision of swift and proactive claims and injury management, reducing overall claims severity and associated costs, and continue to support injured workers in a speedy return to work.
As icare continue with their agent selection process, we will keep you informed of changes to ensure a smooth transition that best represents your interests.
Please contact us with any queries you may have.