SIRA launches three-year plan to strengthen insurance regulation

The New South Wales State Insurance Regulatory Authority (SIRA) has outlined its strategic direction for the next three years.

The plan, named “SIRA 2028,” sets regulatory priorities for New South Wales’s insurance schemes, focusing on customer-centric policies, operational improvements, accountability measures, and enhanced digital capabilities.

Improving insurance accessibility and financial stability

SIRA chief executive Mandy Young (pictured) said the new strategy builds on previous initiatives aimed at ensuring accessible and financially stable insurance schemes in NSW.

“SIRA’s Customer Experience Framework, launched last year, provides the tools for us to put customers at the centre of everything we do. This, together with our regulatory approach that is detailed in SIRA’s Regulatory Framework, will support our efforts to ensure people in NSW can access the support they need and are protected by accessible, affordable, and financially stable insurance schemes,” she said.

SIRA chair Nicholas Whitlam said the strategic direction was developed through consultation with key stakeholders, including the SIRA board and executive leadership team.

“Our focus will be on delivering better outcomes, enhancing trust and accountability in everything we do,” he said.

Latest regulatory activities

SIRA has also published its latest regulatory report, summarising compliance and enforcement activities across the Compulsory Third Party (CTP), Workers’ Compensation, and Home Building Compensation (HBC) schemes for the final quarter of 2024.

Compulsory Third Party (CTP) Scheme

During the quarter, SIRA took compliance action against insurers operating within the CTP scheme. Key regulatory activities included:

• Penalties and compliance measures – one civil penalty of $10,000 was issued to Insurance Australia Limited (NRMA Insurance) on Dec. 13, 2024, for non-disclosure and incorrect application of demerit point loading on CTP renewal policies. A compliance letter was also issued on Dec. 16 regarding complaints management processes.
• Remediation plans – two new remediation plans were initiated, addressing insurer compliance issues related to claims involving a death and premium obligations. A total of 15 remediation plans remain active.
• Fraud investigations – nine new fraud cases were reported, bringing the total number of active investigations to 35. One case resulted in a 12-month Intensive Correctional Order, while two cases remain before the NSW Local Court.

Workers’ Compensation Scheme

SIRA continued its oversight of the Workers’ Compensation scheme, focusing on insurer performance, employer compliance, and claims management. Key activities included:

• Nominal Insurer review – SIRA audited 98 claims under the Nominal Insurer, assessing injury management and early intervention efforts.
• Employer compliance actions – the regulator issued 1,503 compliance letters to businesses suspected of non-compliance, leading to 1,227 new workers’ compensation policies and $3.65 million in premium recoveries.
• Regulatory audits and security reviews – SIRA conducted 13 insurer audits to assess claims handling and compliance with regulatory requirements. Additionally, 15 insurer security reviews were completed, resulting in six increases, one decrease, and eight maintained security levels.

Home Building Compensation (HBC) Scheme

SIRA continued its compliance efforts within the HBC scheme, focusing on non-insured building projects and insurer oversight.

• Compliance audits – the regulator issued 18 notices to businesses identified as non-compliant, bringing the total number of audited businesses to 100 since the compliance program began. Ten official cautions were issued to businesses that failed to meet insurance obligations.
• Monitoring of icare’s Home Building Compensation Fund – a review commenced to assess how icare oversees its distribution network, ensuring compliance with the Home Building Act 1989.
• Exemption applications – four applications for insurance exemptions were received, with two approved and two under review.

Regulation of healthcare and rehabilitation providers

SIRA continued monitoring healthcare providers within the CTP and Workers’ Compensation schemes to ensure regulatory compliance.

• Provider approvals and revocations – the regulator approved 309 new allied health practitioners while revoking 10 approvals and withdrawing 11.
• Chiropractor and osteopath reviews – billing patterns were assessed, with 22 providers contacted regarding potential compliance issues.
• MRI service review – an ongoing audit is examining billing practices for MRI services delivered throughout 2023.

SIRA has indicated that ongoing regulatory efforts will focus on improving compliance, ensuring financial stability within insurance schemes, and protecting policyholders and injured workers across NSW.