WorkCover Queensland has reported a loss of $259 million for the 2009/10 financial year, an improvement on the previous year’s $567 million loss.

The continuing losses have seen the authority’s total equity halved to $384 million at the end of June this year. This compares to $647 million at the end of the 2009 financial year.

“Our operating loss this year has been impacted by the increasing trend in common law claim costs and registrations, which in turn had an increasing impact on the provision for outstanding claims liability,” the authority’s annual report says.

Gross claims for the 2009/10 financial year were $1.64 billion, slightly up on 2009’s figure of $1.59 billion.

Claims for the year were at 88,606 with a sharp rise in the number of cases settled out of court during the year.

The authority paid $506 million to settle cases out of court, compared to $352 million in the previous year.

The main cost of claims is still weekly compensation payments, adding up to $230 million in 2010, but this was down on the 2009 figure of $240 million.  

Although claims are rising, the authority did record a 1% rise in premium income to $959 million and its investments delivered a net return of 11.8%, valuing the portfolio at $2.2 billion.

Queensland Industrial Relations Minister Cameron Dick says although the authority’s financial position is improving more can be done.

“The Queensland scheme is among the country’s best but more can always be done to meet the needs of businesses and workers more effectively,” he said.

“The Government introduced changes from July 1 to make WorkCover more financially secure in the wake of the global financial crisis, rising common law claims and increasing hospital and medical costs.”

Mr Dick says the changes will be closely monitored and another review of the authority will be carried out in 2012.