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icare defends data accuracy after SIRA censure

NSW state insurer icare has defended the accuracy of its return-to-work data after being reprimanded by the regulator.

The State Insurance Regulatory Authority (SIRA) highlighted “data accuracy issues” relating to the Nominal Insurer workers’ compensation scheme.

It says it directed icare to collect data in a number of categories in June last year, including when injured people cease and return to work.

However, an audit carried out in September found “continued non-compliance” in all but one category.

icare has been “issued with a letter of censure” and SIRA has not ruled out further action.

“SIRA will conduct quarterly audits of the [Nominal Insurer], with the first of these audits presently underway,” it said.

“These will include an audit of data requirements until SIRA is assured that the [Nominal Insurer] is providing accurate data. SIRA may also consider further regulatory action of the audits if necessary.”

But icare told insuranceNEWS.com.au it has been supplying accurate data for more than a decade.

“The issue resulted due to a misalignment of data between SIRA and icare,” the spokeswoman said.

“We continue to work with SIRA to align data collection for SIRA’s new return to work metric and to clarify interpretation and consistency of SIRA’s technical definitions, which was introduced in 2018.”

SIRA also fined icare $82,500 last month for 10 instances of non-compliance with premium rate capping requirements.

But the icare spokeswoman says those breaches have already been resolved.

“Of the 326,000 premium notices issued annually by icare, SIRA identified five instances where NSW businesses with poor work health and safety performance were notified of their full premium increase, instead of their premium notice reflecting an increase capped at 30%.

“An internal review by icare identified and informed SIRA of a further five NSW businesses where the cap was not applied on their notice. icare rectified the issue and amended notices were then issued.”