The National Insurance Brokers Association (NIBA) has again raised concerns over the state of the NSW workers’ compensation scheme, urging the state government to do more to improve the sustainability of the program. 

Spiralling claims costs have resulted in a “dramatic increase” to the cost of workers’ compensation insurance for many NSW employers, NIBA says. 

Earlier this week the association NIBA said it has written to Work Health and Safety Minister Sophie Cotsis expressing “serious concerns about the ongoing affordability of workers’ compensation insurance for NSW employers”. 

State-owned insurer icare’s recent moves to raise premium rates by an average 8% and change employer classification have affected many businesses. 

“Insurance brokers act on behalf of over 50% of the employers who contribute to the NSW workers’ compensation scheme,” NIBA said. 

“As brokers have been assisting their clients with the renewal of their workers’ compensation insurance, it has become clear that the way in which some employers have been reclassified by icare has increased their actual premium well above the quoted average of 8%, with some premium increases reaching as high as 30%.” 

NIBA CEO Phil Kewin says “the recent premium increases will affect some employers dramatically”. 

He says the NSW Government’s move to revamp the icare board “is a positive first step to what needs to be extensive reforms in NSW workers’ compensation”. 

The Government announced yesterday it will appoint an employer and employee nominee to the icare board as part of ongoing efforts to “repair” the state insurer. 

Two “suitably qualified” employer and employee directors will be nominated by employer and employee bodies under the proposed change. They will replace two non-executive directors, leaving the size and cost of the icare board unchanged with nine directors. 

Ms Cotsis says it’s critical that injured workers and premium-paying businesses are given a seat at the board table to support ongoing reform. 

“Return-to-work rates and the dissatisfaction felt by many injured workers highlight the need for a diversity of views and more robust decision-making on the icare board,” she said. 

“icare knows that this improvement and reform journey is ongoing. There will be more steps to come.”