“The NSW Workers Compensation Scheme is worth nearly $ 18 billion. However, over the past eight years there has been significant cost pressures that have been absorbed by the system as rewards have been kept on hold, “said Richard Harding, icare’s chief executive officer.
“In making this recommendation, we have considered the future risk to system performance, including volatile investment markets, the provision of operational improvements and the ongoing impact of COVID-19.”
In the medium term, icare is aiming for a modest increase in premiums of 2.9% per year over the next two years in order to ensure no jerky reactions or interest rate shocks for companies in the context of other normal business expenses such as utilities. Assurances were given that adjusted premiums would remain below the national average.
Harding said the premium increase would allow the insurer to improve its performance and reduce internal costs through savings of $ 100 million.
“We will make sure that companies benefit from the improvements through better services, not their wallets,” he said. “Bringing injured employees back to work earlier is always best for employees and employers, and it also lowers the costs of the system. Because of this, it’s one of my top three priorities as the new CEO and a focus of the Nominal Insurer’s new Group Executive.
“We will continue to invest in programs that deliver real safety outcomes, like the Protect Together program, which has a record 18% improvement in safety,” he continued. “We have identified and will work with the 20% of employers who account for over 60% of all system costs and expedite the improvement of their employer safety records.”
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