We’re helping businesses transition to the new premium scheme.
A simpler and more transparent approach to workers compensation premiums for medium and large businesses in NSW has been introduced. We’ve listened to business and focused on making changes that will improve stability and certainty around what you pay, by streamlining processes and rewarding businesses that maintain a safe workplace. This includes:
- only assessing risk ratings on an annual basis
- making policies easier to understand and reducing administration
- supporting safety and rewards for businesses that maintain safe workplaces
- incentives for employers who manage workers through safe recovery at work.
The changes are also aimed at improving workplace safety and employer support for workers with an injury.
To help with the transition and to reduce your premiums, you can:
- talk to your icare workers insurance agent (eg Allianz, CGU, GIO, EML, QBE)
- talk to your risk manager
- talk to icare workers insurance.
Transitional arrangements – 30% cap to support employers
SIRA has put transitional arrangements in place for policy periods 2015/16 and 2016/17 and set a 30 per cent cap on increases to the premium percentage rate to ensure a smooth transition to the new premium model. All employers are eligible for the cap and your Workers Insurance agent has all the information to check if this is applicable to you.
Your Workers Insurance agent will check to see if your premium requires capping and work with icare workers insurance on your behalf to make sure you don’t pay too much.
SIRA has introduced this cap so employers can be supported during the transition to the new model that is geared towards improving safety and support for workers.
If you’re a high cost employer, you should talk to your Workers Insurance agent and risk manager to help you improve your workers compensation performance.
Performance discount for good performing employers
All employers who perform better than the scheme average will receive a performance discount at the end of the year of between 5-20 per cent.
These are employers with low workers compensation claim costs through good safety systems and who proactively support injured workers to return to suitable work safely.
The performance discount is one of the many new rewards and incentives introduced by icare workers insurance under the new premium scheme to drive better performance and improved outcomes for workers.
Assessing risk only once a year
The new premium model will end the uncertainty of unexpected premium costs for businesses. A shift to annual risk assessment provides certainty and stability to employers - this is a significant point of difference for the scheme. Premiums will now only be adjusted to reflect an employer’s wage change.
Investing in building safer workplaces
SIRA believes in partnering with employers to improve safety and reduce injury. That’s why the Employer Safety Incentive (ESI), a percentage of the Average Performance Premium, has been expanded to medium and large employers.
The purpose of the ESI is to help employers build safer workplaces. This incentive should be re-invested into improving safety and support systems so that it leads to more benefits in the future.
Rewarding good performance
An Employer Safety Reward (ESR) is available to all employers who maintain a safe workplace and do not incur any premium impacting claims for four consecutive years. The reward is an additional discount off the Average Performance Premium that is delivered at the end of the policy year.
Incentives for swift return to work
The Return To Work Incentive (RTWI) is rewards employers who proactively help injured workers return to suitable work safely. It is applicable for claims after 30/6/15.
The RTWI encourages employers to remain connected with injured workers and to find suitable return to work opportunities. We know that recovering at work promotes fast recovery and reduces the risk of long-term disability, benefiting both employer and employee.
Improving your performance and reducing your premium
To improve your workers compensation performance, you should be working closely with your scheme agent and risk manager. They can help you:
- implement best practice injury management systems
- introduce workplace safety programs
- develop loss prevention strategies to minimise risk of injury.
This will maximise your ability to take advantage of the incentives and rewards under the new premium formula.