The Victorian WorkCover Authority is still trying to ease its new agents into the system without rocking the boat too much. It has again extended a freeze on the movement of policies on to new insurers. Originally the freeze was to last until September 1, but it has now been extended to December 2, locking in hundreds of thousands of policies.

A VWA spokesman said extending the freeze was necessary “to help maintain stability”.

“With the introduction of new insurers there was concern that there was too much movement… so there needs to be a freeze on it to allow everything to cool down,” he said. “The idea is to settle it down and give insurers more time before allowing people to swap and change.”

Earlier this year VWA sacked five insurers – Royal & SunAlliance, Zurich, GIO, Catholic Church and Guild – from its authorised agent panel system after a much criticised secret selection system.

The agents that stayed were Allianz, CGU, NRMA Insurance, QBE Mercantile Mutual and brokers Jardine Lloyd Thomson. The VWA also brought in two new operators, loss adjusters Wyatt Gallagher Bassett and Aon-owned Cambridge Australia.

None of the dumped insurers had been given reasons for their dismissal. Neither were their clients told why they had been arbitrarily allocated to new entrants.

There could be another reason for the extension of the freeze. Industry rumour suggests that brokers and their clients have not welcomed the arbitrary allocation of files to agents which may well be in competition with them, or which do not meet their criteria. It’s understood they have already lodged thousands of transfer forms with insurers, waiting for December 2.