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
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
CGU to pull out of NSW workers’
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
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.
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.
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.