What’s the “pivotal shift” in the NSW workers’ comp landscape?
What’s the “pivotal shift” in the NSW workers’ comp landscape? | Insurance Business Australia
Insurance News
What’s the “pivotal shift” in the NSW workers’ comp landscape?
Could it help lower premiums?
Insurance News
By
Daniel Wood
NSW’s workers’ compensation sector will see a significant change later this year. From June 30, for the first time, medium size firms – not just large ones – will be able to choose their Claims Service Providers (CSPs).
Insurance broker Andrew Jamieson (pictured above) said this is a “pivotal shift in the current workers’ compensation landscape.”
Sydney-based Jamieson is practice leader with Bellrock Benefits, part of the insurance brokerage and risk advisory firm, Bellrock. He leads an advice and insurance offering focused on managing workplace risks.
“This is a really positive and significant change for the scheme as, since 2018, the majority of employers in NSW have had little or no control over the CSP responsible for managing their workers’ compensation claims,” he said.
Spreading the workers’ comp news
An icare spokesperson told Insurance Business that this news is being widely shared through broker and stakeholder forums like the National Insurance Brokers Association of Australia (NIBA) and through email newsletters and online communications to medium sized firms.
A November icare media release, primarily about new performance data on the icare website, also mentioned it:
Choosing from six providers
“Following these new changes, a larger number of employers will now have the flexibility to select a CSP from a pool of six providers including EML, Allianz, QBE, GIO, Gallagher Bassett, and DXC,” said Jamieson. “This is a really positive and a significant change for the scheme as, since 2018, the majority of employers in NSW have had little or no control over the CSP responsible for managing their workers’ compensation claims.”
He also said the recent introduction of additional market competition for claims agents will push enhancements in the scale and quality of claims services on offer.
“This, in turn, is anticipated to contribute to improved return-to-work rates and ideally lower premiums,” said Jamieson.
How will the CSP change impact insurance advisors?
For brokers, the Bellrock insurance advisor expects this change to help them better assist clients by ensuring they are paired with the most suitable CSP.
“Our role will be to review all options available to our clients and advise how to best engage with CSP either via an informal or formal tender process,” said Jamieson. “By creating a tailored approach it will ultimately work to enhance efficiency and achieve better claim outcomes for our clients.”
How does icare’s performance data help?
icare provides businesses with performance data on each of the six possible CSP options.
“It’s a bit of a moving target,” said Jamieson. “icare presents a variety of measures and they keep updating these metrics throughout the year.”
He said what might have been a top-ranking CSP one month can shift in the next update.
“The key takeaway here is that the rankings can depend on the specific criteria that matters most to each individual employer,” said Jamieson. “It’s not necessarily just about being at the top of the list, it’s about finding the CSP that aligns best with your unique needs and expectations.”
He said icare started providing this data in 2023.
“This data covers a range of metrics like employer satisfaction, return-to-work results, and caseload statistics, giving employers a good look under the hood,” said Jamieson. “Ultimately, each employer’s individual experience with a claims service provider is what matters most, regardless of where they stand in the rankings.”
Are smaller businesses next?
Jamieson also said it is likely that the flexibility to select a CSP will extend to smaller businesses with lower AAPs in the future.
“It is expected that this change will progressively extend to encompass a larger pool of employers after its initial implementation,” he said.
Are you an insurance broker or adviser in the workers’ compensation space? How do you see this CSP change? Please tell us below
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