Government administered workers’ compensation schemes around the country are in a process of reform as they struggle to contain rising costs and offer quality services. Insurance firms often provide the insurance for these schemes and manage claims. In recent years, more brokers are getting involved by offering risk management services that can reduce claims numbers and make workplaces safer.
In South Australia, Josh Newberry (pictured) said two current challenges facing the sector are an ongoing digital upgrade and talent retention. Newberry, is Gallagher Bassett’s (GB’s) acting executive general manager with responsibility for the SA and NSW workers’ compensation businesses.
“Return To Work SA is embarking on a digital transformation, which is both exciting and challenging,” said Newberry. GB provides third party claims management and consultancy services for self-insurers as an agent of Return To Work SA (RTWSA).
He said updating these systems can result in “performance dips” in the short terms so the challenge for GB and the RTWSA is ensuring a smooth transition.
Newberry said another issue for every workers’ compensation scheme, not just in SA and NSW, is retaining talent. “We have reduced attrition rates in our South Australian team to less than 14%,” he said.
According to some sources the average attrition rate for Australian businesses is about 18%, with some industries experiencing rates as high as 23%. Newberry said his firm’s relatively low rate can be attributed to positives including a supportive culture and manageable workloads. “The importance of having dedicated and well-trained personnel with appropriate caseloads remains paramount regardless of State or Scheme, to ensure the best support for injured workers and employers,” he said.
Stakeholders say a steep rise in mental health injuries in recent years has driven workers’ compensation claims numbers up across the country.
One approach that is helping stem this tide in South Australia, suggested Newberry, is fully mobile case management that results in more face-to-face contact with customers.
He said this is less common in New South Wales and could be a significant opportunity. “Face to face interaction with customers is key to ensuring consistent service experiences,” said Newberry.
However, he said the different legislative environments in SA and NSW add a layer of complexity to applying this to NSW workers’ compensation operations. “While we’ve seen a rising trend of mental injuries in both regions, NSW faces unique challenges that require tailored strategies to address them effectively,” he said.
Those include, he said, legislative changes before parliament around compensability criteria. Other challenges are managing the scale of claims in NSW, said Newberry, while balancing a tailored approach for each individual and circumstance.
However, he said there has been “good adoption of mental health and wellbeing programs in the public sector in recent years.” Newberry expected that to have a follow-on effect for private employers’ workers’ compensation arrangements.
Last month, the National Insurance Brokers Association (NIBA) appeared before the NSW Legislative Council’s Public Accountability and Works Committee to provide evidence as part of that state’s workers’’ compensation reforms.
According to a NIBA media release, the broker peak body told the Committee that the proposed legislative changes “were unlikely to resolve the underlying financial and structural pressures facing the system.” NIBA encouraged the government to strengthen the governance and oversight of the scheme.
In June, the Opposition and Greens joined forces to delay the Labor government’s workers’ compensation reforms and refer them to a second parliamentary inquiry.
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