PREMIUM UPDATES FOR 2019-20
icare are currently in the process of implementing the changes that they have made to workers insurance premiums in NSW. These changes were only released this week.
We wanted to communicate this to you as quickly as possible as they will come into effect from 30/06/2019 and will impact on premiums and budgets for the 2019/20 policy year.
You will shortly receive an email from icare which will invite you to renew your policy. Prior to submitting wage declarations, it is vitally important that you contact our premiums team who will further detail the changes, analyse the impact, and accuracy, and will also be able to provide you with live projections and forecasts if required.
We will also continue to work closely with icare to ensure these changes will have as minimal impact on your business as possible.
Please see below an outline and explanation of the changes;
Employer Safety Incentive (ESI)
In considering the premium model for the 2019-20 policy year, icare have maintained an Employer Safety Incentive (ESI) with all employers, however they have reduced the discount to 7.5%. This is a reduction from the previous 10% Employer Safety Incentive that icare had previously offered in past renewals.
Changes to Return to Work Incentive
The claims RTWI is no longer applied to small employers' claims, however they will still retain their Employer Safety Incentive.
Scheme Performance Measure (SPM)
Over the past 24 months icare has consolidated claims management from five scheme agents to predominantly one. The aligning of these claims has impacted the claims cost used to calculate experience-rated employer premiums. To make allowances the SPM has been increased to 4.3%. Increasing the SPM helps to reduce adverse premium impact resulting from the claims consolidation process.
Increase in Loss Prevention and Recovery (LPR) factors
There has been a change in LPR rates for the 2019-20 policy year. For LPR clients, details of the LPR rates are as follows:
Movement of Workers Compensation Industry Classifications (WICs) between Premium pools
Each year WIC rates are revised in line with an industry’s performance. However, the average premium rate for NSW remains unchanged at 1.4% of wages. WIC changes for 2019-20 are as follows:
234 WICs have had a decrease in WIC rate.
271 WICs have had an increase.
33 WICs remain unchanged.
We are obviously not able to list all changes here and encourage you to contact our premiums team as some clients will be adversely affected. We will not only discuss the changes with you, but work with you to minimise the impact where possible.
Late payment fee
The Late Payment Fee rate for 2019-20 has decreased from 0.808% to 0.794%, per month, compounded monthly.
For further information please contact our premiums team or your Account Executive.