NSW state-owned icare has launched a tender for the procurement of claims management services in the nominal insurer workers’ compensation scheme.

Finance and Employee Relations Minister Damien Tudehope says the tender follows wide consultation on a new claims model, which included a market study on potential service providers, a survey on the Government Have Your Say website, and interviews and focus groups with injured workers, businesses, unions, industry groups, service providers and the community.

“The aim is to improve the way claims are managed, providing simpler, better care for injured workers and support for employers,” Mr Tudehope said today.

“icare has listened to the needs and concerns of stakeholders and is taking action to evolve and improve the way NSW workers' compensation claims are managed. This consultation will continue through the tender process and as the new claims model takes shape.”

Mr Tudehope says the intention is to include more roles for service providers, encouraging different providers and specialised skills, increasing transparency of performance of providers and providing greater choice for employers over time.

This will drive improved outcomes for injured workers and businesses through competition, he says.

The tender process follows the final 12-month extension to icare’s existing provider contracts, which will ensure stability as the tender process gets underway, the Government says.

The successful applicants will begin their new roles on January 1 next year.

Providers intending to bid for a contract will receive procurement details under a Confidentiality Deed Poll. Notification has been made available on the NSW Government E-Tender website, with submissions due by April 15.

“The new model aims to create a competitive marketplace, enabling choice, innovation and continuous improvement to support injured workers and employers,” icare CEO Richard Harding said today.

“We’re looking for enhanced performance of case managers, specialised claims service providers and we’re targeting performance incentives to drive better outcomes.”

The market study undertaken last year aimed to increase icare’s understanding of available capabilities and experience in providing workers’ compensation claims and injury management services.

Respondents were asked to make submissions describing key competencies across service offerings, digital and innovation capabilities, experience in managing claims and related services, while also providing views on the industry outlook and trends.

EML was appointed the sole workers’ compensation agent for new claims under a contract starting January 2018, when icare controversially moved from five scheme agents to one. Allianz, GIO and QBE were later appointed as authorised providers for larger businesses.