The 'bedrock' of a better workers' comp scheme in NSW

Hon Robert McDougall QC has released a report assessing Insurance and Care NSW (icare), the workers’ compensation scheme, and the five-year statutory review of the State Insurance and Care Governance Act 2015.

The report included recommendations to address the issues surrounding workers’ compensation in NSW, noting that icare’s call for change was well-intentioned but was conducted poorly – leading to poor execution and failures in procurement, cost management, probity, and conflict management.

Key recommendations include:

• icare should be bound to a procurement and  probity  framework equal to that of other government agencies.
• icare should prepare and publish a plan for cultural change which addresses key risk factors and reports annually to the Treasurer on its progress.
• The icare board should include one or more members who possess extensive public sector experience and workers’ compensation insurance experience.
• SIRA should develop an accelerated plan for implementation of the findings of its Healthcare Review and release it publicly.
• There should be a further independent cultural review of icare by 2023.

Once the relevant recommendations have been implemented, the report expects the workers’ compensation system to deliver the full measure of injured workers’ statutory entitlements fairly and efficiently and at the least cost possible to employers.

The insurance industry has welcomed the report, with State Insurance Regulatory Authority (SIRA) chief executive Carmel Donnelly stating that the regulator is reviewing the report and is committed to acting on the recommendations relevant to its regulatory role.

“Mr McDougall has delivered a detailed assessment of the complex issues facing the NSW workers’ compensation system,” Donnelly said.

The NSW government has also welcomed the report and accepted 35 recommendations. However, the remaining 16 recommendations that require legislative change would need to be considered by the Cabinet.

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Treasurer Dominic Perrottet commented that McDougall’s objective and constructive approach would help the government implement the report’s recommendations, delivering a stronger and better workers’ compensation scheme.

“Securing the review has been a top priority for me and the government, and I thank Mr McDougall for his work in delivering a report that will ultimately support better outcomes for injured workers and employers in NSW,” Perrottet said.

“Over the past seven months, we haven’t sat idle. We have acted and embarked on the most significant changes to icare since the scheme was created in 2015. We know there is still more work to be done, and these recommendations will form the bedrock of a better and stronger workers’ compensation scheme.”