The Insurance Council of Australia (ICA) has rejected WorkCover WA proposals to increase the terrorism liability cap for insurers from $25 million per event to $100 million.

ICA says it largely supports recommendations from the review of the WA workers’ compensation legislation but “strongly objects” to those on acts of terrorism.

It says insurers might find it difficult to get reinsurance for the larger amount.

ICA also rejects proposals to change the definition of worker and to abandon the existing regime for mining employers.

The review recommends that mining employers be required to insure asbestos liabilities under standard policies, but ICA says asbestosis is excluded from reinsurance treaties. Even if it was not excluded, any effort to include the disease in policies could lead to significant increases in premiums.

Insurers also say a proposal to allow WorkCover WA to approve, limit or modify policy endorsements or extensions by regulation could make the market less competitive.