icare selects six workers’ compensation claim service providers

NSW state-owned insurer icare has selected six claims and injury management service providers following a consultation on changes to improve the performance of the workers’ compensation scheme.

Allianz, Employers Mutual Ltd (EML), DXC, Gallagher Bassett (GB), GIO and QBE have been appointed to manage claims for the Nominal Insurer scheme, starting from next year.

Finance Minister Damien Tudehope said the appointments, which follow a tender process, mark the next step in a scheme reset that aims to improve outcomes for injured workers, give employers greater choice, and increase financial sustainability over time.

“Appointing this mix of quality claims service providers builds new capability and capacity in the system and is a key step towards providing a more specialised response to the growing incidence of psychological injury,” he said.

Current contracts with Allianz, EML, GIO and QBE will end on December 31 and the new contracts will start on January 1. The contracts are for 10 years, subject to performance. Further providers may be brought on to the panel at a future date.

Icare says that considering feedback from a range of stakeholders and lessons from past experience, the changes will be rolled out in a staged approach over the next two years to minimise impact on injured workers and employers.

CEO Richard Harding says four providers will provide specialist psychological claims capability as well as general injury claims capability.

“We’ll also bolster our approach to psychological claims management with an internal team dedicated to improving psychological claims outcomes and potential additional appointments to our provider panel in the future,” he said.

Mr Harding says the new contracts will enable icare to drive better performance through competition via publicly reporting provider results and making it easier for businesses to choose a provider.

GB says its appointment expands its workers’ compensation footprint, building on its existing Victorian, SA, and NT operations as well as a national presence in self-insurance.

The firm will establish a new business unit led by COO Lionel Charmetant and NSW Workers’ Compensation GM Craig Newton.

As a result of the appointment, it will be in a position to appoint staff to a number of roles in NSW, including claims management personnel as well as key leadership positions, GB said.