<a href="http://wcdcomp click to investigate.com.au/wp-content/uploads/2013/08/curve.jpg”>NSW WorkCover have released new rates for the adjustment of the 2013/2014 period and for the renewal of the 2014/2015.
Whilst Tariff Rates have almost universally reduced, the Industry Claims Cost Rates have in many cases reduced by an even greater amount. The Industry Claims Cost Rate is the measure by which large employers are judged, and the lower the rate, the more difficult it is for an employer to rein in premium.
This means that premiums are going to increase for many medium and large employers, whether their claims performance is good or poor.
For policies that renew between 30 June and 31 December the average change in rates between the 2012/2013 Adjustment and the 2013/2014 Adjustment is:
- A 9.5% average reduction in Tariff Rates
- A 17.9% average reduction in Industry Claims Cost Rates
For policies that renew between 30 June and 31 December the average change in rates between the 2013/2014 Renewal and the 2014/2015 Renewal is:
- A 2% average reduction in Tariff Rates; and
- A 25% average reduction in Industry Claims Cost Rates.
For policies renewing between 1 January and 30 June the reductions in Tariff Rates are slightly less because they already received the majority of Tariff Rate reduction in their last renewal, however the change in Industry Claims Cost Rates will impact upon them just as heavily.
WorkCover will no doubt point to the fact that this demonstrates the reduced claims costs in the system due to legislative changes made in the last few years, however, WCD – Workers’ Compensation Solutions is aware that almost all medium and large employers who have claims will have an increase in premium.
Should you have any queries regarding the impact of these changes please do not hesitate to email Craig Simpson our Practice Manager for Premiums & Analysis on 02 8745 2000.