icare announce 8% average workers compensation premium rate increase for 2024-25
Employers in New South Wales set to receive annual premium renewal notice, as a state-wide mailout gets underway.
Insurance and Care NSW (icare) today confirmed the average rate of workers compensation premiums in New South Wales will increase by 8% in the 2024-25 financial year.
The increase is in line with a statutory direction made last year by Workplace Health and Safety Minister Sophie Cotsis, capping the average rate of increase at 8% per annum over a three-year policy period (2023/24 to 2025/26).
A spokesperson for icare said the additional revenue will help icare's Nominal Insurer scheme return to a break-even level of funding, following a period between 2012 and 2020 when the average premium rates did not increase.
"Workers compensation schemes across Australia are responding to inflationary pressures, higher numbers of complex claims, and investment volatility. icare's average premium increase of 8% responds to economic realities and ensures a strong and sustainable workers compensation scheme for over 320,000 employers and 3.5 million workers across New South Wales," the spokesperson said.
Individual employers are advised that their own premium may vary from the 8% average, with a final rate calculated according to their specific industry, claims history, safety performance, and other risk factors. Support is available to employers seeking to lower their premium, with discounts of up to 5% for upfront payment in full, and rewards for safer employers.
"Employers with a higher risk workplace should consider how, in any given year, an increase above the average rate might be sought in response to a growth in injury claims. Similarly, lower risk workplaces may receive a premium increase below the 8% average, rewarding measures by an employer to improve their workers safety and reduce claims. We encourage all employers to talk through options with their broker, or simply visit our website for helpful guidance," said the spokesperson.
Background: More resources for business
icare offer a range of discounts and incentives to businesses that demonstrate a strong safety record and commitment to helping injured workers return to work.
Support for small business
Currently, small employers who make payment in full, on or before the due date receive a discount of 5%. Small employers who have at least three years of policy history and a good safety record also qualify for a Safe Employer Reward of up to 7.5%. icare also provides special guidance for small businesses, to encourage safer workplaces and reduce the risks and practices that drive up premiums.
Support for medium to larger business
Currently, larger employers (called experience-rated employers) who make payment in full, on or before the due date receive a discount of 3%. A Safe Employer Reward of up to 7.5% is also available for those with a strong safety record. icare also offers a range of incentives, discounts, and other adjustments to help larger businesses in NSW lower the cost of their insurance premiums and be rewarded for delivering a safer workplace.
How to Lower your Workers Compensation Insurance Premium
More information about Premiums
Detailed information on premiums:
Employers can also phone icare's Underwriting team on 13 44 22, or use the online chat.
