WorkCover NSW has cut the number of insurance agents handling workers’ compensation policies and claims from seven to five, with Gallagher Bassett Services and Xchanging failing to be reappointed.

Contracts have been approved for Allianz Australia Workers’ Compensation (NSW), CGU Workers’ Compensation (NSW), Employers Mutual NSW, GIO General and QBE Workers’ Compensation (NSW). They will continue as agents and enter new contracts from January 1.

The contracts are for three years and may be extended for two extra one-year periods. Claims and policies managed by the two eliminated companies will be transferred during next year.

 “This represents the best mix of scheme agents to maximise benefits to employers and workers,” WorkCover CEO Vivek Bhatia said.

WorkCover NSW says the arrangements include clearer performance measures and efficiency incentives.

Allianz says it has been awarded a 27.8% market share of the generalist portfolio and more than 35% of the long-tail portfolio.

Suncorp says GIO’s market share under the scheme will rise to about 20.6% from 15.6% following the tender process.

CGU will retain its current share of about 16% and will continue to manage existing general and long-tail claims.

Employers Mutual says its share of the general portfolio will rise to 15.4%, while details of an increase in its long-tail claims share will be finalised after more discussions.

QBE’s GM Workers Compensation John Hammond told insuranceNEWS.com.au the company was “incredibly pleased” to have been retained as both a generalist and tail agent.

WorkCover NSW said QBE had been given a market share in the range of 19.6% to 19.8%.

WorkCover allocations awarded to each company could change slightly during implementation.