Important changes happening in NSW Workers' Compensation

09 March 2017

There have been a number of developments regarding the workers’ compensation scheme in New South Wales which will have an impact on many employers across the State.

There are two important changes which are currently underway that will affect the way in which workers’ compensation insurance is managed; the Agent selection process, and a new way of processing policies, premiums and renewals.

THE AGENT SELECTION PROCESS

icare are currently conducting a tender process to award licenses to successful Agents from 2018-2020. The existing Agent contracts are due for expiry at 31 December 2017. The outcome of the Agent selection process is expected to be announced by icare in late April 2017.

Agents providing workers’ compensation insurance services to icare are QBE, Employers Mutual (EML), GIO, Allianz and CGU.

CGU to pull out of NSW workers’ compensation insurance

CGU have announced that, beyond the term of the current Agent license, they will cease to provide workers’ compensation services on behalf of icare to NSW employers. CGU hold a 21% market share and therefore this announcement will impact a large number of NSW businesses.

Although this is a significant change to the workers’ compensation scheme in NSW, it is important to note that CGU has a strong workers’ compensation presence in other states and territories which is not affected by this decision.

The JLT Workers’ Compensation team are currently working closely with icare to ensure a seamless transition for those impacted by this announcement. Further information will be provided throughout the Agent selection process.

A NEW WAY OF PROCESSING POLICIES, PREMIUMS AND RENEWALS

In March 2017, icare released a simplified way to buy workers compensation insurance in NSW. JLT can now support you to arrange new workers’ compensation insurance policies online. This online platform will reduce the administrative burden of purchasing a policy by removing the current paper-based proposal forms.

Later in 2017, icare will be expanding this platform to existing NSW customers to buy and renew workers compensation insurance. JLT has been at the forefront of these changes and will be part of interface testing in the coming weeks.

As a result of these changes, Agents will no longer provide policy management services, including underwriting, to NSW employers. This transactional function will now be managed by icare, allowing Agents to focus on driving positive outcomes as third-party claims administrators. We believe this is a positive change and will simplify the way in which JLT transacts workers’ compensation insurance for our customers in NSW.

BACKGROUND TO THESE CHANGES

Structural changes to compensation schemes in NSW and related agencies in August 2015 resulted in the formation of three government organisations to promote a simple, efficient and engaging experience for the people of NSW. One of these organisations, icare, was formed to operate as a single customer-focused insurance and care service provider.

Following the formation of icare there has been a critical review of the way in which workers’ compensation insurance is currently transacted and managed in NSW with a view to providing employers with a clearer, simpler and easier way of doing business.

FURTHER INFORMATION

Have your say on NSW workers’ compensation

JLT are in regular communication with icare regarding the above changes and the future direction of workers’ compensation in NSW. Through this engagement, JLT are working to ensure the immediate and long-term benefit to our customers. To have your say as part of this engagement, we would like to invite you to provide input on these changes and ask questions of icare to gain clarity on the impact of changes to the NSW workers’ compensation scheme on your business.

CONTACT US

For further information and to have your say in JLT’s regular engagement with icare, please contact Georgie Ahern, JLT National Manager – Workers’ Compensation on +61 (2) 9320 2738 or your JLT representative.