The State Insurance Regulatory Authority (SIRA) of New South Wales is preparing to update its suite of return-to-work programs following an independent review by the Australian Council for Educational Research (ACER).
The ACER evaluation, commissioned to assess SIRA-funded initiatives supporting individuals injured at work or on NSW roads, found that the programs are generally meeting their intended objectives.
However, the report identified variability in program efficiency and effectiveness, with administrative processes and the timing and tailoring of services emerging as areas for improvement.
The evaluation process included interviews with injured participants and employers, as well as forums and workshops with insurers and workplace rehabilitation providers.
ACER’s findings resulted in five key observations and nine recommendations, which SIRA has accepted as part of its ongoing efforts to improve outcomes for injured workers and employers.
SIRA has announced plans to develop an implementation strategy that addresses the review’s recommendations, with a focus on streamlining and modernising its programs.
A round table discussion is scheduled for October, bringing together insurers, employers, rehabilitation providers, unions, and industry representatives.
This forum will be used to explore collaborative approaches to implementing the recommendations and to strengthen return-to-work outcomes across the state.
The implementation plan will be finalised after this consultation, ensuring that stakeholder perspectives are incorporated.
SIRA has indicated that the plan will align with the NSW Government Return to Work Strategy, recent findings from the 2025 Workplace Rehabilitation Provider Evaluation Report, and the insurer early intervention program. The plan will also inform SIRA’s Return to Work Roadmap for 2026-29.
In a separate development, SIRA has released the results of a comprehensive review into claims management practices in NSW, prompted by the Law & Justice 2023 Review of the Workers Compensation Scheme.
The review recommends a shift toward a person-centred approach in claims handling, with particular attention to psychological injury claims and the need for more individualised support.
The review, which drew on data analysis, audits, and stakeholder feedback, produced four main findings and 14 recommendations. Central to these is the call for early intervention and tailored assistance to improve recovery and return-to-work rates.
SIRA intends to embed these principles in its upcoming Return to Work Roadmap, set for rollout in 2026.
Under the proposed changes, insurers will be expected to adopt person-centred practices throughout the claims process, including communication, injury planning, and decision-making.
SIRA will increase its regulatory oversight to ensure compliance and will work with insurers to enhance the skills of case managers.
The review also calls for clearer guidance and more proactive engagement with workers and employers.
SIRA plans to monitor insurer performance through ongoing supervision, with a focus on the accessibility and effectiveness of support.
For psychological injury claims, insurers are advised to use cohort-based models to provide more tailored care.
To address administrative complexity, SIRA is considering adjustments to its regulatory approach, aiming to balance principle-based, prescriptive, and risk-based regulation.
Updates to guidelines and audit tools are expected, with the goal of reducing unnecessary administrative tasks and supporting the transition to person-centred case management.
These initiatives mark a period of transition for insurers, employers, and rehabilitation providers in NSW, as SIRA moves to modernise its approach to injury recovery and claims management.
