icare, the provider of workers compensation insurance, has recently released the premium updates for the upcoming financial year.
One significant change in the premium updates is the increase in premium rates for the Nominal Insurer workers compensation scheme. The rates will experience an average increase of 8% for the 2023-24 financial year, resulting in a rise from 1.48% of wages to 1.60% of wages. It's worth noting that this average increase will vary among industries, accounting for their unique risk profiles.
To provide a comprehensive overview, let's explore the key updates for the 2023-24 period:
- Workers Compensation Industry Classification (WIC) Rates: The WIC rates, which determine premium rates for each industry, will see an average increase of 8%. However, it's important to recognize that the exact adjustment may differ for each industry, aligning with their specific risk levels.
- Employer Safety Incentive (ESI) becomes the Safe Employer Reward (SER): The ESI program will evolve into the SER program, reinforcing the importance of workplace safety. This update recognizes employers who prioritize and invest in creating safe work environments, fostering a culture of employee well-being.
- Claims Performance Adjustment (CPA) Table of Rates: The CPA table of rates will be extended to 600+%. This extension aims to better reflect employers' performance in managing workers' compensation claims. By applying higher rates to employers with poor claims management practices and offering lower rates to those with excellent performance, icare promotes responsible claims management.
- Increase in Loss Prevention and Recovery (LPR) Claims Adjustment Factors: The LPR claims adjustment factors will experience an 8% increase. These factors allow for adjustments to premium rates based on employers' claims history and recovery efforts. The adjustment seeks to incentivize proactive measures taken by businesses to prevent and manage workplace injuries effectively.
- Minor Changes to Dust Disease Levy (DDL): The DDL will undergo minor adjustments in accordance with SIRA's instructions. While specific details are not provided, these changes aim to ensure alignment with current regulations and industry requirements.
By engaging with the experts, employers can optimise their insurance costs, prioritise workplace safety, and navigate the evolving landscape of workers compensation effectively.
Contact our Director and Head of Workplace Solutions team today to gain valuable insights and tailor strategies to your business needs.
Trevor Creech | Director and Head of Workplace Solutions
T: 0439 943 403