Premium predictability for NSW Businesses
The NSW Government has issued a direction to Insurance and Care NSW (icare) to limit the average premium rate increase for NSW workers compensation to 2.9 per cent, ensuring predictability and stability for businesses.
This will see the average premium rate increased from 1.44 per cent of wages to 1.48 per cent for the policy year 2022-23, in line with rate increases in the last policy year and remaining below the national average.
This direction, made by the Minister for Finance Damien Tudehope in the public interest, is reflected in icare’s premium filing issued to the State Insurance Regulatory Authority (SIRA).
Mr Tudehope said the maintenance of a modest increase in premiums balances the cost impacts on NSW businesses and the long-term sustainability of the workers compensation scheme.
“Businesses across the state are experiencing significant headwinds as a result of natural disasters, COVID-19 and global inflationary pressures. Financial certainty is critical for businesses in these challenging times,” Mr Tudehope said.
The NSW Government’s direction followed consideration of pricing options developed by icare, the state’s public insurer and manager of the $20 billion of assets under the NSW Nominal Insurer (NI) that provides coverage for 330,000 NSW employers.
“The Government’s focus on the sustainability of the NI fund continues by driving operational savings, investment performance and other efficiencies introduced by the new leadership team at icare,” Mr Tudehope said.
“NSW businesses with a strong safety record and commitment to helping injured workers return to work will continue to be rewarded with incentives and discounts.”
The icare premium filing will be considered by SIRA in the coming weeks.