NSW state insurer icare Chairman Michael Carapiet will step down later this month and be replaced by John Robertson, as the organisation undergoes an overhaul and the Government fast-tracks a review into its operations and regulation.

NSW Treasurer Dominic Perrottet said today Mr Robertson will Chair the insurer from September 25 as part of a transition of the icare board, with Deputy Chairman Gavin Bell also retiring.

Wider board changes will result from the recent resignation of Mark Lennon and with terms ending for several other members in February.

“This represents the biggest change for icare since it was created in 2015,” Mr Perrottet said.

Priorities outlined for Mr Robertson include the recruitment of a new CEO, improving return-to-work rates and providing monthly updates on injured worker underpayment remediation.

Mr Perrottet says the new chairman will undertake an immediate review of the bonus and remuneration framework, with a decision already taken against paying bonuses for the past financial year.

“John’s appointment is a big boost for icare and marks a significant change at what is a crucial time for the organisation,” he said.

“He is widely respected in the community, with extensive experience in politics, the union movement, workers’ compensation, business and most recently as COO of charity Foodbank.”

A statement from icare says Mr Carapiet and Mr Bell advised the Government late last year of their intentions to retire, and a board renewal process was initiated in May.

“Mr Carapiet and Mr Bell have been an integral part of the NSW insurance schemes since 2012 and icare acknowledges their enormous contribution,” the statement said.

“Mr Bell has already retired and Mr Carapiet will be doing so after the finalisation of icare’s 2019/20 financial accounts.”

Mr Carapiet, who was at Macquarie Bank for nearly three decades, has been Chairman since icare launched in 2015 and previously was Chair of the Workers’ Compensation Investment Fund and Safety Return to Work and Support.

The Government last month said a scheduled five-year review of workers' compensation had been brought forward and expanded to include a “root and branch” examination of icare following criticism of the organisation’s performance.

The review, being led by retired Supreme Court judge Robert McDougall, will include the structure and sustainability of the Treasury Managed Fund and Nominal Insurer schemes and regulatory issues.

Terms of reference, released today, show the inquiry will release two reports. One will cover the organisational review of icare, issues raised in the media and the review of the workers’ compensation scheme.

The other report, to be delivered by April 30, will fast-track the State Insurance and Care Governance Act 2015 review.

Former CEO John Nagle left icare early last month after a NSW Parliamentary committee raised question over his approach to potential conflicts of interest and the performance of the insurer.

The committee is examining workers’ compensation as part of a requirement to report at least once every two years on the scheme.