Insurers argue they can bring competition and innovation to the Queensland workers’ compensation scheme, currently run by a government authority.

But legal and union groups say the scheme is working well and is helping injured people back to work while keeping premiums relatively low.

The parliamentary finance and administration committee is due to report this month on its inquiry into the state workers’ compensation scheme.

Queensland WorkCover handles far more claims than other states: more than 100,000 in 2010/11 compared with about 40,000 each in NSW and WA and about 30,000 in Victoria.

Q-Comp, the workers’ compensation regulatory authority, says this is because of employer excess and claim lodgement arrangements, with WorkCover administering all claims from the start. In other states claims must be lodged through the employer.

The authority says lifting the bar on lodgement would allow employers, workers and doctors to manage uncomplicated injuries.

A report for Q-Comp by Finity Consulting shows the cost of providing benefits to injured workers in Queensland is about 20% higher than in Victoria and NSW.

This is because of access to common law, although only about 4.5% of Queensland claimants go to court.

The administrative cost of the Queensland scheme is relatively efficient, Finity says.

WorkCover Queensland says the scheme’s financial position is strong, with a solvency ratio of 119% last June 30. The average premium is the second-lowest in the country.

Suncorp says the scheme’s short-tail nature and well-designed system of step-downs – reductions in benefits over time – are strong features that have allowed it to maintain a positive funding ratio.

But the insurer says an open market would allow for greater innovation and competitive premiums.

“The private sector has demonstrated considerable innovation in risk-rating the premium levels of workers’ compensation schemes in Australia,” it said.

“The use of an effective risk-rating system that rewards positive risk behaviour and loads the premium of employers that demonstrate poor performance is a powerful signal to the market capable of driving change in risk behaviour.”

Employers Mutual recommends a pilot scheme using WorkCover agents who can transfer innovation from their operations in other states.

“We have regularly transferred our learning from one scheme to others,” it said.

“This allows us to spread costs, encouraging innovation, and centralise expertise in claims management, training and quality control.”

The Queensland Law Society argues the program is the best in the country “due to the short-tail nature of the scheme, principally its unrestricted access to common law to bring finality to claims and to avoid inculcating a ‘welfare mentality’ among claimants”.

It says recent changes have stabilised and reduced the cost of open access to common law.

The test for common law negligence is a high hurdle and a check on unwarranted claims, the society says.