Insurance Premium Reductions – Followup

by Craig Simpson, WCD-Workers' Compensation Solutions

WorkCover NSW recently issued a press release (see our earlier article) relating to industry rate reductions that will apply from the 30 June 2013 Insurance Premiums Order. Whilst this is undoubtedly good news for employers, there are a few things to note.

  1. The reductions only apply to about two thirds of the industry classifications. This means that the other third of classifications are going to remain stable.
  2. It provides no details relating to any changes to the “Industry Claims Cost Rates” which are a critical part of the calculation for medium and large employers. If these rates also move significantly it could negate any benefit from the reduction in industry rates.
  3. It gives no indication of any other changes that WorkCover may choose to make to the new Insurance Premiums Order.

Thus at this early stage it is impossible to say with precision what may or may not occur in terms of actual premium impact, although we can certainly provide some indicative impacts for those policies that have a classification that will be reduced. It should also be noted that the changes will apply from a policy holders next renewal on or after 30 June 2013.

If you have any queries about these changes and how they might affect you, please contact Craig Simpson at WCD on (02) 8745 2002.