Transitioning to the new premium scheme
We’re helping businesses transition to the new premium scheme.
WorkCover Insurance has introduced a simpler and more transparent approach to workers compensation premiums for medium and large businesses in NSW.
We have listened to business and focused on making changes that will improve stability and certainty around what you pay, cut red tape and reward businesses that maintain a safe workplace. They are also aimed at improving workplace safety and employer support for workers with an injury.
To help with the transition and to reduce your premiums:
- Talk to your scheme agent.
- Talk to your risk manager.
- Talk to us.
30% cap on premium increases during transition
WorkCover Insurance has set a 30% cap on premium calculations for all employers to ensure a smooth transition to the new premium model. All employers are eligible for the cap and your scheme agent has all the information to check if this is applicable to you.
When your scheme agent calculates your premium for policies commencing on or after 30 June 2015, they will check to see if your premium requires capping. Your scheme agent will then work with WorkCover Insurance on your behalf to make sure you don’t pay too much.
WorkCover Insurance has introduced this cap because it believes that employers should be supported during the transition to the new model that is geared towards improving safety and support for workers.
If you are a high cost employer, you should talk to your scheme agent and risk manager to help you improve your workers compensation performance.
Performance discount for good performing employers
All employers who perform better than the scheme average will receive a performance discount at the end of the year of between 5-20%.
These are employers with low workers compensation claim costs through good safety systems and who proactively support injured workers to return to suitable work safely.
The performance discount is one of the many new rewards and incentives introduced by WorkCover Insurance under the new premium scheme to drive better performance and improved outcomes for workers.
Assessing risk only once a year
The new premium model will end the lottery of unexpected premium costs for businesses. A shift to annual risk assessment provides certainty and stability to employers - this is a significant point of difference for the scheme. Premiums will now only be adjusted to reflect an employer’s wage change.
Investing in building safer workplaces
WorkCover Insurance believes in partnering with employers to improve safety and reduce injury. That’s why the Employer Safety Incentive (ESI), which is a percentage off the Average Performance Premium, has been expanded to medium and large employers.
The purpose of the ESI is to assist employers in building safer workplaces. This incentive should be re-invested into improving safety and support systems so that further benefits can be achieved.
Rewarding good performance
An Employer Safety Reward (ESR) will become available to all employers who maintain a safe workplace and do not incur any premium impacting claims for four consecutive years. The reward is an additional discount off the Average Performance Premium that is delivered at the end of the policy year.
Incentives for swift return to work
The Return To Work Incentive (RTWI) is a new incentive that rewards employers who proactively help injured workers return to suitable work safely. It is applicable for claims after 30/6/15.
The RTWI encourages employers to remain connected with injured workers to find suitable return to work opportunities. We know that recovering at work promotes fast recovery and reduces the risk of long-term disability benefiting both employer and employee.
A better approach to workers compensation premiums
- Only assessing risk ratings on an annual basis
- Making policies easier to understand and reducing administration
- Supporting safety and rewards for businesses that maintain safe workplaces
- Incentives for employers who manage workers through safe recovery at work.
Improving your performance and reducing your premium
To improve your workers compensation performance, you should be working closely with your scheme agent and risk manager. They can help you:
- implement best practice injury management systems
- introduce workplace safety programs
- develop loss prevention strategies to minimise risk of injury.
This will maximise your ability to take advantage of the incentives and rewards introduced by WorkCover in the new premium scheme.