icare Announces Significant Changes to the NSW Scheme in 2024

Starting from 30 June 2024, employers will be provided with greater choice in NSW, as icare announces that it is allowing more experienced rated employers to choose their claims service provider (CSP).  

This is positive news for the scheme. From 2018, the majority of employers in NSW have had little or no control over the CSP appointed to manage their workers’ compensation claims. The changes permit a larger number of employers to now have the flexibility to select a CSP from a pool of six providers including EML, Allianz, QBE, GIO, Gallagher Bassett, and DXC.  

The employers eligible to choose their provider from 30 June 2024 are: 

  • Employers that have an Average Performance Premium (APP) that exceeds $200,000; or

  • Are a part of a group with a Group Average Performance Premium (GAPP) that exceeds $200,000.

Whilst employers with an APP below $200,000 will still not be able to select their CSP at 30 June 2024, it is anticipated that icare will progressively extend the threshold so as to include a larger pool of employers. 

During the next 12 months icare will collaborate with employers to streamline and manage both open and closed claims efficiently. In an effort to empower employers with relevant information for informed decision-making, icare has now provided performance data of the CSPs on its website.  

The data is updated quarterly and provides comparative metrics including employer satisfaction, return-to-work outcomes, and caseload data (detailing the average number of open claims managed by each CSP). 

Despite recent premium increases in NSW, which are expected to persist into 2024, the introduction of additional market competition for claims agents is poised to drive enhancements in both the scale and quality of claims services offered to employers. This, in turn, is anticipated to contribute to improved return-to-work rates and hopefully reduced premiums.  This adjustment also brings NSW more in line with the rest of the country, where five out of the remaining seven jurisdictions already allow employers the flexibility to freely select their insurer or claims service provider/claims agent each year. 

If you would like additional information regarding the CSP or insurer options available to your business and how you can engage with CPS’ and insurers either via an informal or formal tender process, please contact Andrew Jamieson and the Bellrock Benefits team. 

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