Victoria’s WorkCover Authority has pushed five insurers out of its authorised agent panel system, effectively ending their workers’ compensation business in the state. Royal & SunAlliance, Zurich, GIO, Catholic Church and Guild were the big losers when the changes were announced yesterday. Only two new agents were announced to replace them.

The new panel of authorised agents includes the workers’ compensation arms of Allianz, CGU, NRMA Insurance and QBE Mercantile Mutual. Jardine Lloyd Thomson will now be joined by another broker, Cambridge Australia, which is linked to Aon. Loss adjuster/claims manager Wyatt Gallagher Bassett is the second new entrant.

The announcement has stunned some insurers, although the state government – and the previous Kennett administration – indicated several times over the past 10 years that insurers had no monopoly on the agent positions.

“It’s a surprise,” one of the insurer’s senior managers said. “It will take some time to work out how this is going to work effectively. This is a bit of a mixed bunch.”

The announcements capped off a big week for Victoria’s WorkCover system. Last week it reported a second consecutive half-year profit – the first in seven years. Workplace Relations Minister Bob Cameron said the half-year operating profit for December 2001 was $149 million.

He attributed the greatly improved results to better claims management and an improved focus on occupational health and safety. Combined with that was a reduction in benefits paid to injured workers.