Limit determined for icare premiums, tender evaluations begin

26 April 2022

The NSW Government says it has issued a direction to state-owned insurer icare to limit the average premium rate increase for workers’ compensation to 2.9% to ensure predictability and stability for business.

The direction made by Finance Minister Damien Tudehope will see the average premium rate increased from 1.44% of wages to 1.48% for the 2022/23 policy year, in line with increases in the past year and remaining below the national average.

Mr Tudehope says maintenance of a modest increase balances cost impacts on businesses and the long-term sustainability of the workers’ compensation scheme.

“Businesses across the state are experiencing significant headwinds as a result of natural disasters, Covid-19 and global inflationary pressures. Financial certainty is critical for businesses in these challenging times,” Mr Tudehope said.

The Government direction is reflected in icare’s premium filing to the State Insurance Regulatory Authority, which will consider the matter in coming weeks.

icare has also confirmed that submissions on a tender to provide claims management services closed before Easter, with announcements expected toward the end of the year.

The tender for the provision of services for the nominal insurer workers’ compensation scheme was launched in February, and significant changes are expected under new arrangements due to start next year.

“Evaluation of submissions has commenced with a view to complete the procurement process in the last calendar quarter of 2022,” an icare spokesman told insuranceNEWS.com.au. “It is not appropriate to make any further comments on the submissions or the process at this stage.”

Mr Tudehope said earlier this year that extensive consultation had been undertaken, and would continue through the tender process and as the new claims model takes shape.

“The intention is to include more roles for service providers, encouraging different providers and specialised skills, increasing transparency of performance of providers and providing greater choice for employers over time,” he said. “This will drive improved outcomes for injured workers and businesses through competition.”