SISA Update Robin Shaw Manager, Self Insurers of SA Inc SISA General Meetings 8 June 2007 INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Legislation OHS&W (Penalties) Amendment Bill – has passed the Upper House Submissions to Clayton Walsh review of scheme due 30 June – SISA submission nearing finalisation INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Natural Consequences Model WorkCover has proposed collapsing the measures down to 4: 1.Initial claim determination within 10 days where reasonably practicable This might be a workable compromise as it reflects the legislation INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Natural Consequences Model WorkCover has proposed collapsing the measures down to 4: 2.Existing Measure 24 re contributing to industry & scheme via supply chain etc We have put it to WorkCover that if it is to be retained it should be part of a new Level 4 as it goes above and beyond what is normally required of self insurers INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Natural Consequences Model WorkCover has proposed collapsing the measures down to 4: 3.No substantiated breaches of s.58B/C Is reflective of the terms of s.60(6)(f) of the Act, so we would probably not object to it INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Natural Consequences Model WorkCover has proposed collapsing the measures down to 4: 4.Injured workers surveyed annually and results provided to the injured workers Probably reflects what most members do anyway INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Natural Consequences Model Reducing 25 measures to 4 can probably be characterised as good progress – our submission was thought optimistic by suggesting 7 measures WorkCover is working on obtaining agreement from SA Unions but will not allow them to unreasonably obstruct progress Still targeting implementation for late CY2007 INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Natural Consequences Model Transitional issues remain a focus: A reminder that SISA still holds the view that about half of the existing measures cannot be legally enforced. WorkCover is likely to be reasonable and apply the revised measures as soon as it practically can rather than wait for Board endorsement Members confronted with problems under the NCM in the interim period should energetically remind their WorkCover evaluators about the above & consult SISA. INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

Exit fees Exit fees – WorkCover has proposed a simpler and what it calls a fairer formula that may substantially reduce balancing payments SISA remains absolutely opposed to any regime that recovers future levy surcharges from employers moving into self insurance While we are working towards abolition of all exit fees, we will accept any interim arrangement that reduces the impost INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

National ‘harmonisation’ NCSI remains opposed to information exchange – all risk & no benefit NSIWG (chaired by James Large) is going to tell HWCA that harmonisation can’t get traction until performance standards & laws are harmonised The Comcare debate continues – important that those commenting understand the process INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

National issues Robin Shaw elected Chair of NCSI on 31 May – but SISA & its members still come first! Comcare is generating excessive fear & loathing in some schemes – Vic has introduced what we call the ‘Comcare Punishment Bill’ Rumour that there are about 17 companies considering Comcare – but can they satisfy the competition test? NCSI is starting work on developing a model framework for consistent self insurance legislation NCSI will insist on better consultation with HWCA to prevent further blunders like the National Audit Tool INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

AGM 17 August Only Full Members have voting & proxy rights but Associates encouraged to attend Special resolutions to amend SISA constitution: To allow Comcare self insurers to be members To allow telephone attendance at Executive Committee Annual report will be released at the AGM We need 75% of Full Members present or voting by proxy to have valid votes. Please attend or nominate a proxy. INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

OTHER ISSUES SISA’s asset base significantly strengthened by major increase in property value In discussions with WorkCover re status of the EERA (now called SIERA) Evaluation Practice Manual – WorkCover accepted most of SISA’s feedback & made changes accordingly. Will be published shortly. OH&S and IM User Guides being drafted to help regularise scope of evaluations INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk

About your Association 81 Full Members 52 Associate Members Net asset base (‘fighting fund’)over $ ½ million Member of the National Council of Self Insurers Reputation growing at WorkCover & SafeWork SA Website in last 2 weeks of May : 46,783 hits 6,191 pages viewed INSURERS SELF INSURERS OF SOUTH AUSTRALIA INC Employers Managing Their Own Risk