NSW Premium updates for 2023-24

The premium rates for the Nominal Insurer workers compensation scheme will increase by an average of 8% for the 2023-24 financial year.

This means premium rates for 2023-24 will increase from 1.48% of wages to 1.60% of wages.

Every industry has its own inherent level of risk so icare applies a premium rate based on the safety performance of each industry over the last 5 years. For 2023-24, some businesses will see an increase less than the scheme average of 8%, and some will be greater.

Employer Safety Incentive (ESI) will be replaced with a Safe Employer Reward (SER)

Employers previously received a 7.5% discount on BTP (base tariff premium). Icare have introduced the Safe Employer Reward for 23/24. This is a performance-based reward for employers whose policy is calculated under the conventional premium formula method.

Small employers who have at least three years of policy history and no weekly benefit claims costs or catastrophic claim charges in the 36 months prior to policy renewal will receive an SER premium reduction (7.5% x APP) at renewal.

Experience-rated employers who have at least three years of policy history, a Claims Performance Rate (CPR) of less than 100% and no catastrophic claim charges in the 36 months prior to policy renewal will receive an SER premium reduction at renewal.

The reward percentage rate is on a sliding scale based on an Employers CPR.

Claims Performance Rate / Safe Employer Reward rate?

From 0% to less than 20% / 7.50%?

From 20% to less than 50% / 5.00%?

From 50% to less than 100% / 2.50%?

100% or greater / 0%?

Claims Performance Adjustment (CPA) table of rates extended to 600+%

Further information regarding the premium changes can be found in the attached FAQ Factsheet.

Given these changes to experience ratings in NSW, Employers should partner with a broker that specializes in workers’ compensation and understands fully how their premiums are calculated and what best practice strategies should be adopted in regard to claims management.

Emjay Insurance Brokers provide expert management of your premiums and claims. Please contact our experienced team 02 9796-0400.