NSW state insurer icare says it is seeking to address concerns raised by the National Insurance Brokers Association (NIBA) over changes to letters of appointment used in the workers’ compensation scheme.

NIBA says the letters, which confirm an employer has appointed a broker as their authorised delegate, have introduced requirements that are too broad.

“In particular, it is unclear how insurance brokers can provide an undertaking to comply with all privacy and health obligations that apply to the employer,” NIBA CEO Dallas Booth said.

“This undertaking appears to be far too wide and NIBA has expressed willingness to be consulted further regarding this.”

The updated letter is effective immediately on all new appointments while the change will need to be made by the end of the year for all existing policies that currently receive a cost of claims report.

The NSW workers’ compensation and state privacy legislative regimes place strict obligations on how insurers share information with third parties and the letters are required to ensure compliance, icare says.

"icare is aware of the concerns raised by NIBA and is actively working to address these,” a spokeswoman told insuranceNEWS.com.au.