Updates and upcoming changes to the WorkCover WA Broker Principles and Standards
WorkCover WA’s Insurance Brokers Principles and Standards of Practice (the Principles and Standards) will come into effect from 1 July 2024.
WorkCover WA’s Insurance Brokers Principles and Standards of Practice (the Principles and Standards) will come into effect from 1 July 2024.
The Principles and Standards were developed in consultation with an industry reference group consisting of members from across the scheme, including members from NIBA’s WA Divisional Committee.
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.
The Principles and Standards set out six priority areas that WorkCover WA believes are integral to ensuring effective engagement between brokers, employers, insurers, and WorkCover WA.
Priority 1: Employer experience
Insurance brokers have the skill and knowledge required to competently advise and act, with the employer’s best interests paramount.
Priority 2: Insurance
Employer compliance with insurance obligations is accurately assessed and diligently monitored.
Priority 3: Claim and injury management
Employers are made aware of their claim and injury management obligations and are encouraged to actively engage and comply.
Priority 4: Insurer experience
Insurance brokers understand and demonstrate respect for the legislated role licensed insurers play in sustaining a scheme intended to benefit injured workers.
Priority 5: Scheme regulation and administration
Insurance brokers comply with WorkCover WA’s regulatory and administrative requirements.
Priority 6: Record keeping
Client records are maintained evidencing service agreements, advice given, instructions received, and action taken. Policies, processes, and procedures are documented.
Many of the obligations outlined mirror brokers’ 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
Many of the obligations under the Principles and Standards require brokers to document all advice given to clients including but not limited to advice on meeting their legislative and regulatory requirements. As such, it is vital that brokers keep accurate records outlining all communication with/attempts to contact clients.
Upcoming changes
An updated version of the Principles and Standards, released in April, appeared to place the obligation to itemise all charges including insurer premiums, commissions, brokerage, GST, stamp duty, and non-statutory extensions on brokers.
NIBA has since clarified the intent of this provision with WorkCover WA, who confirmed that this obligation only applies to invoices and quotes from insurers, not brokers. WorkCover WA advised that an updated version of the Standards and Principles that addresses this issue will be released shortly.
For more information on the Principles and Standards click here. WorkCover WA’s Workers Compensation and Injury Management training modules will also be updated to reflect the new obligations.