New Board announcements imminent as icare repair continues

Legislation has passed both houses of parliament that will help create a better governance structure at NSW’s workers compensation provider icare, as the reform journey of the organisation continues.  

NIBA had written to the Minister for Industrial Relations and Work Health and Safety Sophie Cotsis back in June, citing serious concerns about the about the ongoing affordability of workers compensation insurance for NSW employers. 

The way in which some employers have been reclassified by icare increased their actual premium well above the quoted average of 8%, with some premium increases reaching as high as 30%. This doesn’t take into consideration wage increases, which also have an inflationary effect on premiums. 

 In response to concerns raised by the industry and the business sector, the NSW Government announced back in June that it will focus on improving workers compensation governance by appointing an employer and employee nominee to the icare Board.   

New Board announcements seem imminent now that legislation to amend the governance structure of icare has passed and will soon become law.  

The Minister will appoint employer and employee body representatives to the icare Board in the first step in the reform of icare’s governance. 

Two suitably qualified employer and employee directors will be nominated by employer and employee representatives and will replace two non-executive directors, leaving the size of the icare Board unchanged with nine directors. 

The two new directors will provide fresh perspectives, helping to better represent the employers who pay workers compensation premiums and the injured workers who need to access the scheme. 

“Adding employer and employee representatives to the Board is the first step to bring a critical lens upon management to improve performance and accountability to ensure better outcomes for the 330,000 businesses and 3.2 million workers covered by icare,” said Minister Cotsis.