WorkCover NSW’s new rewards-based model will limit premium increases for the next two years, according to WorkCover Insurance Director of Underwriting Jason McLaughlin.

He says the cap gives employers time to adjust their safety and recovery programs.

“We understand some employers may need to engage industry expertise to improve their performance, and over the next two years we will monitor their progress under the protection of capped premiums.”

WorkCover Insurance says it is keen to help employers – especially poorer performers – bring down their premiums during this time. 

“The new premium model is a fresh start for us, with performance indicators that are within an employer’s direct control, and it is not comparable with the previous claims cost recovery model,” Mr McLaughlin said.

The model, introduced last week, includes incentives for improving worker safety.

Incentives or premium discounts can be earned at the end of the year, including the performance adjustment and the employer safety reward for employers with no claims.

The model introduces three years of claims history for annual risk assessment, to be used for both renewal and actual wages adjustment.

Under the new return-to-work incentive scheme, employers receive a 15% discount on claims if they return staff to work within 13 weeks, 10% for 13-25 weeks and 5% for 26-52 weeks.

The new premium model aims to help poorer-performing employers join the 70% of employers that already outperform the scheme average.

“There are a range of services and advice available from within Work Health & Safety or other insurance and risk professionals that can easily be engaged to assist in the key outcome of reducing and preventing injuries,” Mr McLaughlin says.

“For too long many advisers in the industry have only focused on the expected claims costs, not on preventing injuries or supporting return to work, and while they are challenged by this change in premium formula, it also opens new and exciting opportunities for them.”