Opening Queensland’s workers’ compensation scheme to the private sector will benefit injured workers and create more competitive premiums, according to Suncorp.

The state parliamentary Finance and Administration Committee heard from insurers, companies and legal firms last week as part of an inquiry into the performance of WorkCover Queensland, which serves 90% of employees in the state.

While some organisations, including unions, say the scheme works well, many employers claim it is exploited for its “entitlement culture”, with unlimited access to common law and resulting fraudulent claims.

Suncorp’s Chief Workers’ Compensation Underwriting and Portfolio Manager Jason Allison says common law provides greater levels of volatility within any scheme, where the scheme is “constantly reacting” to the changes in judgements.

“Common law payments are open to superimposed inflation with the scheme having no control over the costs,” he told insuranceNEWS.com.au.

Suncorp says staff and employers would benefit from allowing the private sector to administer and manage claims.

“The introduction of competition delivers employer choice which in turn drives greater innovation and customer value and the maintenance of competitive premiums,” says Mr Allison.

“With the introduction of private capital there is more incentive to effectively estimate and manage claims and link risk closely with premiums.

“It also encourages the focus to remain on the safety of workplaces, timely and effective claims management and customer satisfaction,” he said. 

Other issues under discussion include regulations allowing larger companies to become self-insured and the introduction of impairment thresholds to avoid excessive claims for lesser injuries.

The committee is to report back to Parliament on February 28.