icare announces workers compensation premiums adjustment

icare has sought SIRA approval for NSW workers compensation premiums adjustment

Written on 25 March, 2021
Tanaya Das

icare has sought SIRA approval for NSW workers compensation premiums to adjust from 1.4 per cent to 1.44 per cent of wages in the next financial year to better meet the long-term risks for the scheme.

icare CEO Richard Harding said, “The NSW workers compensation scheme holds almost $18 billion worth of assets. However, there have been significant cost pressures over the past eight years which have been absorbed by the scheme as premiums were kept on hold.”

“In making this recommendation we have considered the future risk to scheme performance including volatile investment markets; the delivery of operational improvements; and the ongoing impact of COVID-19.”

Premium changes were put on hold last year due to the need to support NSW businesses through the COVID-19 pandemic. The changes we are making this year seek to balance the ongoing support to NSW businesses with the longer-term inflationary pressures on the scheme.

Harding added, “We are seeking modest increases to premiums over the medium term of 2.9 per cent each year over the next two years, within the parameters of other normal business expenses such as utilities, to ensure there is no knee-jerk reactions or rate shock for business. Premiums will remain below the national average.

“It is also important to note that this premium increase will be accompanied by a commitment to lifting icare’s performance and a reduction in internal costs by saving $100 million. We will ensure businesses benefit from the improvements through better services not through their wallets.

“Getting injured workers back to work sooner is always the best thing for workers and employers, and also reduces costs to the scheme. This is why it is one of my top three priorities as the new CEO and a key focus of the new Group Executive of the Nominal Insurer.”