South Australia is overhauling its workers’ compensation scheme, getting rid of the multi-insurer claims agency system it pioneeered and introducing a single operator.

NSW-based underwriter Employers Mutual has won a competitive tender and will be the sole agent handling claims from July 1. It will replace Allianz, QBE, CGU and Vero.

WorkCover SA CEO Julia Davison says injured workers and employers will benefit from “more claims managers delivering consistent service from an agent that has an outstanding track record”.

Employers Mutual CEO Cameron McCullagh says the group will use a cash incentive to encourage good claims performance by employers. The mutual will set up separate offices in Adelaide, with 280 permanent staff members to be employed. It intends to develop a fully funded workers’ compensation scheme by the 2012/13 financial year.

SA WorkCover had an operating surplus of $152 million in 2003/04, but is still carrying unfunded liabilities of $631 million.