WorkCover WA’s updated Insurance Brokers Principles and Standards come into effect

WorkCover WA’s Insurance Brokers Principles and Standards of Practice (the Principles and Standards) have come into force from 1 July 2024.  

WorkCover WA’s Insurance Brokers Principles and Standards of Practice (the Principles and Standards) have come into force from 1 July 2024.  

NIBA’s WA Divisional Committee played an important role in helping develop the updated Principles and Standards, as part of a broader industry reference group that provided input in modernising WA’s workers’ compensation laws.  

The Principles and Standards set out guidelines insurance brokers are expected to adhere to when dealing with clients, workers and other parties within the WA workers compensation system.   

Updates to the Principles and Standards 

A previous version of the Principles and Standards appeared to place the obligation to itemise all charges including insurer premiums, commissions, brokerage, GST, stamp duty, and non-statutory extensions on brokers. 

However, NIBA clarified the intent of the update with WorkCover WA, who confirmed that this obligation is applicable to invoices and quotes from insurers, not brokers. The updated version of Principles and Standards released on 1 July 2024 has addressed this issue.  

Several obligations outlined by WorkCover WA mirror brokers’ existing obligations under the 2022 Insurance Brokers Code of Practice, however the Principles and Standards also introduce new obligations, including;  

• Brokers who are not based in Western Australia who are contacted by a WA-based employer should disclose their location, and any limits to their experience or ability to advise on the operation of the WA scheme.  

• Brokers should contact potential new clients within two working days of receiving a request for advice or assistance.   

• Brokers will notify existing clients within 10 working days when there is a material change to the client’s service team  

• Brokers who do not intend to approach all insurers will disclose to the client which insurers will and will not be approached.  

• Actual remuneration paid during a coverage period will be declared to the insurer within 30 days of the coverage period expiry date. If a client is in breach of this obligation, brokers will document and record the reason for the breach on the client file.  

Brokers can access the updated Principles and Standards released on 1 July 2024 here. 

WorkCover WA has also issued a number of guides and factsheets that will be useful to members in understanding the changes to WA’s workers compensation laws.