The NSW Government will appoint an employer and employee nominee to the icare board as part of ongoing efforts to “repair” the state insurer.

Minister for Work Health and Safety Sophie Cotsis says it’s critical that injured workers and premium-paying businesses are given a seat at the board table to support ongoing reform.

“Return-to-work rates and the dissatisfaction felt by many injured workers highlight the need for a diversity of views and more robust decision-making on the icare board,” she said in a statement today.

“Appointing employer and employee nominees to the icare Board will ensure these important perspectives are heard in the icare boardroom.

“icare knows that this improvement and reform journey is ongoing. There will be more steps to come.”

The Government says two “suitably qualified” employer and employee directors will be nominated by employer and employee bodies under the proposed change. They will replace two non-executive directors, leaving the size and cost of the icare board unchanged with nine directors.

Employers and Unions NSW will have a formal say in the process, with both groups nominating a non-executive director.

Legislation to amend the State Insurance and Care Governance Act 2015 for the board changes will be introduced to NSW Parliament today.

“It will take years to fix a decade of neglect of the workers compensation system, but this bill marks the beginning of our wider reform plans in this space,” Ms Cotsis said.

She says the icare Board “plays a critical role in working together to ensure fiscally sustainable schemes, better claims management, timely medical diagnosis and treatment to support recovery and improved return to work outcomes”.

icare provides workers’ compensation for about 330,000 business and 3.4 million workers, managing about 60,000 new claims each year.

National Insurance Brokers Association (NIBA) CEO Phil Kewin says today’s announcement “is a positive first step to what needs to be extensive reforms in NSW workers’ compensation”.

He says more reforms are needed to ensure the ongoing affordability and sustainability of the workers’ compensation scheme.

icare’s recent move to raise premium rates by an average 8% will place additional cost pressure on small businesses.

“The recent premium increases will affect some employers dramatically,” Mr Kewin said.