Opening Statement to the Public Accountability and Works Committee hearing for the inquiry into the Workers Compensation Legislation Amendment Bill 2025.
Media Release
Thank you Chair, we appear before you today on behalf of the National Insurance Brokers Association, or NIBA, the peak body for the general insurance broking profession. NIBA represents approximately 420 broking firms and 15,000 individual brokers, including large multinational organisations, national broker networks, and small to medium-sized businesses operating in both metropolitan and regional communities across Australia.
Joining me today are Rebecca Wilson and Tim Wedlock, both highly experienced insurance professionals and successful business owners, with a combined 65 years of experience supporting clients within the insurance sector. Their work assisting clients through the complexities of the NSW Workers’ Compensation Scheme provides valuable, real-world insight to this inquiry.
NIBA welcomes this inquiry and commends the Government and the Committee for their willingness to engage with these complex yet crucial issues. As trusted advisers to employers across a broad range of industries in New South Wales, insurance brokers have direct insight into how the workers’ compensation scheme supports injured workers, employers and the broader economy.
NIBA shares the government's concerns about the current financial and operational challenges facing the scheme. The scheme’s financial position has deteriorated sharply raising concerns about the long-term stability of the scheme and its ability to meet future claims obligations.
At the same time, employers are experiencing substantial premium increases. While the average annual rise is approximately 8 per cent, some sectors have been affected far more significantly. These increases place pressure on organisations providing essential community services and have broader economic implications.
We acknowledge that the Bill before Parliament aims to address the rising incidence of psychological injury claims and we support measures that strengthen early intervention and support for injured workers. However, we believe the proposed legislative changes are unlikely to resolve the broader financial and structural pressures facing the scheme.
Return-to-work outcomes are a critical area of concern. Despite various initiatives to improve results, the scheme’s performance in this area is trending in the wrong direction. These trends highlight the need for a renewed focus on early intervention, care coordination, and effective case management.
We also note concerns within the business community about the management of claims that may not have a clear causal connection to the workplace. This is a complex area and one that requires balanced oversight to ensure fairness, consistency, and sustainability.
In light of these challenges, NIBA encourages the New South Wales Government to consider further reforms to strengthen the governance and oversight of the scheme. This should include a review of the regulatory framework, with a focus on transparency, accountability, and improved outcomes for injured workers and employers.
We share the Committee’s commitment to a sustainable, fair and effective workers’ compensation system and we welcome the opportunity to contribute to this important discussion.
Thank you, and I look forward to your questions.