The Insurance Council of Australia (ICA) has highlighted the need for socially and financially sustainable state workers’ compensation schemes.

Programs should encourage prevention, support injured employees in returning to work, help recovery, compensate fairly and charge premiums that are affordable, reflect risk and fully fund liabilities, it says in a submission to a NSW review.

Last year the state overhauled its scheme, creating the State Insurance Regulatory Authority, SafeWork NSW and Insurance & Care NSW (icare).

In August the NSW Upper House’s Standing Committee on Law and Justice announced its first review of these arrangements. Hearings will be held next month.

“We look forward to the outcome of your review and to continuing to work closely and in partnership with icare in any future reforms to the scheme,” ICA CEO Rob Whelan says.

The submission draws on broad principles outlined in a report ICA commissioned from Finity Consulting last year, plus its previous contribution to the Competition Policy Review.

The Finity report says best-practice schemes should be fair, consistent and find a balance that ensures they are neither unaffordable, nor a cause of hardship and community concern.

The submission says scheme cultures should support returning to work, empower injured workers to participate in their recoveries rather than fostering a compensation mentality, and have a focus on capacity rather than incapacity.