Premium, Insurance and Regulation Reforms 2015

Transcription

1 Premium, Insurance and Regulation Reforms 2015 Presented by Suzana Strbac Gow-Gates Insurance Brokers

2 Gow-Gates introduction Established in 1963 One of the largest Australian owned insurance brokers National & international client base Shareholder / Member of Steadfast

3 A quick overview The reform package has three elements: Benefit for employer Premium reductions for employers with good safety and return to work records Benefit for workers Enhanced benefits for injured workers Restructure of NSW workers compensation system Three discrete organisations to provide insurance and care services, regulate the State s insurance schemes and regulate work health and safety

4 Benefits for employers The KEY principles for the premium reforms: Deliver easier to understand premiums Provide safer workplaces Improve RTW and recovery at work outcomes Deliver sustainability and certainty

5 What s In, What s Out: Summary of Key Changes Calculation Item Old world New world from Basic Tariff Premium (BTP) A (Average Performance Premium (APP)) S-Factor A A Employer Cost of Claims Rate (ECCR) A A Industry Cost of Claims Rate (ICCR) A A Experience Premium A A Claims Performance Rate (CPR) n/a A Employer Safety Incentive (ESI) n/a A Employer Safety Reward (ESR) n/a A Return to Work Incentive (RTWI) n/a A Claims Costs: Premium Calculation Paid + Estimates Paid Weeklies Hindsight Adjustment Premium A A

6 How will this affect us in 2015 and beyond? Premium Design Package Safety First Expanding the Employer Safety Incentive (ESI) ESI% discount on APP (at renewal calculation) Introduction of an Employer Safety Reward (ESR) ESR% discount on APP (nil premium impacting claims over 4 yrs) True Risk Rating Static Experience Risk Assessment Transparent Claims Performance Targets (CPR)

7 CPR = Claims Performance Rate Claims Performance Rate (CPR) = CPM SPM Note - This is APP, not wages. = 3 yrs Claims Costs (CC) / 3 yrs Average Performance Premium (APP) Scheme Performance Measure (SPM) Where: CPM = Employers Claims Performance Measure CC = Total claims costs (3 year history) SPM = Scheme Performance Measure (Published in the IPO each policy period)

8 Other premium discount initiatives Incentivising Recovery at work Introduction of a RTW incentive (RTWI) on every claim Note - This is APP, not wages. Return to Work Period Return to Work Incentive (RTWI) 0 <13 weeks 15% reduction in paid weekly claims assessments 13 <26 weeks 10% reduction in paid weekly claims assessments 26 <52 weeks 5% reduction in paid weekly claims assessments

9 Performance discount scenario

10 Employer vs Scheme Performance

11 Benefits for workers Benefit reforms for injured workers was made law in August 2015 The following five benefits became effective from 16 October and apply retrospectively from 5 August 2015: Maximum lump sum compensation for permanent impairment increased $220,000 to $577,050 Death benefit increased from $528,000 to $750,000 Funeral expenses increased from $9,000 to $15,000 Weekly payments beyond retirement age 12 months Medical benefits extended from 12 months to 2 years

12 Restructure of the NSW workers compensation system As of 1 September 2015 there has been a restructure to the NSW workers compensation system and related agencies. There are now three discrete agencies: Insurance & Care NSW (icare) a single customer-focused insurance and care service provider State Insurance Regulatory Authority (SIRA)- a new independent insurance regulator SafeWork NSW an independent workplace safety regulator

13 Insurance & Care NSW (icare) Now delivering customer- centered services to those serviced by: Workers Compensation Nominal insurer Lifetime Care and Support Authority Dust Disease Authority SI Corp Sporting Injuries Compensation Authority icare will make it easier and less adversarial for : Injured people to recieve there benefits Be treated as quickly as possible Track claims and return to work

14 State Insurance Regulatory Authority (SIRA) SIRA has assumed the regulatory functions of : WorkCover NSW in relation to workers compensation insurance Motor Accidents Authority in relation to CTP insurance Home Building Compensation Focus on ensuring key public policy outcomes are being achieved: Service delivery to injured people Affordability Effective management and sustainability of the insurance schemes

15 How will this affect us in 2015 and beyond?

16 SafeWork NSW what is it? It is the states workplace health and safety regulator Focus on harm prevention and improving the safety culture in NSW workplaces Work to establish a centre of excellence for work, health and safety

17 Thank you gowgates.com.au