24 May WORKERS COMPENSATION PREMIUM RATES
Businesses in NSW will start to receive their workers’ insurance premium notices for the new financial year. Following notification from the State Insurance Regulatory Authority (SIRA), icare will proceed with premium rate adjustments from 1.4% of wages to 1.44% of wages for the 2021-22 policy year. This results in an average 2.9% increase across the scheme.
Premiums are determined by how much a business pays in annual wages and the industry classification rate (based on the safety performance of each industry over the most recent past). This year, half of all businesses will not see an increase in their industry classification rate. This also means that some individual businesses will have a premium increase greater than the scheme average if their industry classification rate has changed.
If a business has a premium that is experience rated, the amount they pay is also impacted by their claims performance. This may have a greater impact on the final premium payable than the current changes to rates.
Loss Prevention and Recovery (LPR) customers will also see a 5% increase in the LPR adjustment factors, maintaining consistency of icare’s pricing strategy across all products.
Our approach to premiums aims to balance the ongoing support to NSW businesses as they recover from the impacts of COVID-19 with the longer-term inflationary pressures on the scheme. SIRA is supportive of our pricing strategy, which includes modest increases over the medium term. Any past operating issues will be met by changes to icare’s operations, not paid for by NSW businesses. This premium increase will also be accompanied by a commitment to lifting icare’s performance and a reduction in internal costs by saving $100 million.
To find out more, please visit the premium updates page.