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30 April 2017
CGU will exit the NSW workers’ compensation scheme when its current contract expires at the end of this year.
The decision follows the introduction of reforms under which Insurance & Care NSW (icare) will take over the insurers’ role in handling policy and billing requirements for the scheme from early next year.
The government insurer will also offer a new broker channel, a self-service portal and a customer support centre.
The decision by CGU will bring to an end 30 continuous years of involvement in the NSW scheme.
IAG CEO Australian Business Division Ben Bessell says changes to the design and distribution of the new model make it commercially unviable to continue as an agent.
He says each state scheme is different and CGU will maintain its workers’ compensation presence in other states and territories.
“We will continue to provide workers’ compensation insurance products to more than 100,000 businesses around Australia,” he said.
John Nagle, the Group Executive Workers Insurance at icare, says employer policies and workers’ claims will begin transitioning to icare’s ongoing service providers in July.
More details in our regular bulletin on Monday.
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