The State Insurance Regulatory Authority (SIRA) has refused a bid by Employers Mutual Limited, trading as Trinity Insurance, to widen its specialised workers' compensation insurer licence to a broader employer group.
Trinity applied to SIRA to vary a condition on its existing New South Wales specialised insurer licence so it could write workers' compensation cover for employers in the health and human services sector, according to information published by the regulator. The proposed variation would have extended Trinity’s existing authorisation beyond its current Defined Industry, which is limited to the Roman Catholic Church and its religious institutions, to a wider range of health and human services employers. SIRA advised Trinity in writing on Feb. 26, 2026, that the variation application had been refused. As a result, Trinity will continue to operate under its current licence, which remains confined to the Roman Catholic Church and its religious institutions. The insurer is not authorised under its specialised licence to write workers' compensation policies for health and human services employers. SIRA has not published detailed reasons for the refusal.
Under the Workers' Compensation Act 1987, SIRA may license insurers to operate as “specialised insurers” for a particular industry or class of business. These licences allow the holder to underwrite workers' compensation risks for employers within an approved Defined Industry in New South Wales. SIRA’s licensing framework states that it “covers the requirements for obtaining a licence, general licence conditions, and the conduct required of specialised insurers, including their ongoing obligations to SIRA as the regulator of licences and to their insured employers and workers.” The Defined Industry is formed from a list of primary activities that align to WorkCover Industry Classification (WIC) codes in the Insurance Premiums Order.
Once SIRA approves a Defined Industry for a specialised insurer, “SIRA will not allocate this Defined Industry or part thereof to any other specialised insurer.” Coverage is determined by the employer’s business activities rather than membership of a particular organisation. A specialised insurer must issue or renew workers' compensation policies “to employers operating in the Defined Industry that request coverage, and will not be permitted to exclude which risks are covered.” Any request to materially expand or alter the Defined Industry – such as moving from a religious institutional base into the broader health and human services sector – may require an application to be assessed under the framework for new specialised insurer licences, rather than being treated as a minor change.
The licensing framework makes clear that it “will not be applied in substitution for, or by way of restriction on, the State Insurance Regulatory Authority (SIRA) statutory discretion to grant, refuse, suspend, or cancel specialised insurer licences.” Under section 178 of the 1987 Act, SIRA may grant or refuse a licence and may consider the suitability of the applicant, its capital position, the orderly run-off of claims, the efficiency of the workers' compensation system generally, and “such other matters as SIRA thinks fit.”
SIRA’s objectives for specialised insurer licensing include ensuring “the efficiency and viability of the NSW workers' compensation system,” avoiding adverse effects on scheme efficiency, and requiring that specialised insurers deliver workers' compensation outcomes to employers and workers on a sustainable basis. The framework also links specialised licensing to work health and safety promotion, access to workers' compensation insurance based on suitable risk assessment, and compliance with Australian Prudential Regulation Authority (APRA) solvency requirements.
Applicants and licensees are expected to demonstrate long-term financial capacity, appropriate reinsurance arrangements, actuarially determined reserves, and the ability to meet underwriting, claims, data, and reporting obligations. Governance, ownership and control, and operational capability – including injury management, return-to-work planning, and complaints handling – are among the factors SIRA may assess in new applications and renewals.
The outcome of Trinity’s application shows the limits on expanding a specialised insurer’s Defined Industry once it has been agreed with SIRA. The Trinity decision indicates that changes to the scope of a specialised licence are likely to be considered in the context of system-wide impacts and the established licensing framework. SIRA’s published guidance states that prospective applicants should engage with the regulator early, develop a detailed business case, and demonstrate industry support, financial strength and operational readiness before seeking a new licence or a substantial variation to an existing Defined Industry.
