IRT Workers Compensation National Executive Review

Overview of NSW NSW Premium calculation takes into consideration 3 years claims and 3 years wages history which includes claims estimates as at the policy end date. Example: Kim Citizen injured her left arm trying to move a rubbish bin on the 12/06/2013. Kim went to the hospital to get her arm checked as there was suspicion that she may have fractured or broken her elbow Even though there was very minimal investigations/treatment done prior to policy renewal date which is the 30/06/2013 and employee was certified unfit until the 12/07/2013 the insurer is required to forecast costs (estimate) depending on the workers status and diagnosis at that time. It was identified on the 5/07/2013 that the injury was a strain and not a fracture or break and Kim returned back to pre-injury employment on the 12/07/2013 In this particular case there was only $1,000 paid as at 30/06/2013 however due to the fact that this worker was unfit at that time the insurers are required to estimate up to a maximum of 12 weeks wages, treatment, investigations and rehabilitation which could accumulate to approximately $5,000 – $10,000.

Overview of NSW Scenario based premium comparison table compares a number of premium projections based on claims movement.

Overview of QLD QLD Premium calculation takes into consideration 5 years claims and 5 years wages history however is only based on actual figures not estimates If we were to use our Kim Citizen example the costs that would have been used as at 30/06/2013 would have only been $1,000 paid and not the $5,000 – 10,000 which would have been estimated. However: Queensland use 5 years claims and wages history which includes 3 years of statutory claims costs as well as 2 years common law claims costs. What is a Common Law Claim? A claim against the employer for negligence. Case Studies Hospital not found to be negligent: Industry standard equipment not enough to satisfy duty of care

Overview of ACT ACT ACT is a underwritten state or also known as a risk based state. This means that the insurer will take on the claims risk and determine the rate applicable. ACT and TAS have the highest rates in Australia The rate is determined by the insurer and is based on insurer profitability across their book and your industry. ACT is the only state that has unrestricted access to common law claims

State by State Premium

NSW 2012 – 2013 final adjustment and 2013 – 2014 renewal have now been processed. Report is as at Any movement in premium after this date has not been captured in this report Premium paid to premium rate Premium has decreased by 20.18% from last year which includes a 3.26% decrease in wages. Claim count, frequencies and average costs There are currently 68 open claims Number of claims have dropped from period to period Claims costs for the 2010/2011 policy period no longer premium impacting Drivers Illawarra Retirement Trusts main claims drivers are muscular stress related injuries followed by trips and falls Employer Claims Cost Rate to Industry Claims Cost Rate This graph demonstrates your performance to those of your industry peers. Industry rates are determined by WorkCover New South Wales and are an indication of the level of claims costs within your industry, based on WorkCover New South Wales historical data. Illawarra Retirement Trust are performing better than the industry in terms of claims cost rates. It should be noted that in recent years, the performance of the industry has deteriorated..

NSW Premium paid to premium rate graph shows your premium performance across 5 years against premium paid to wages which is calculated by dividing premium by your wages

NSW

Average incurred is calculated by dividing your total gross incurred by the number of claims. Claims per $m in wages

NSW Number of Claims shows the frequency of claims over the last 5 years

NSW Claims costs graph shows claims cost trending

NSW Claims Cost Rate is the prescribed industry rate set by WorkCover. Employer Claims Cost rate is calculated by dividing wages by your claims costs. This gives a good indication on how your tracking as an employer against the industry. An employer should always aim to have a lower Claims Cost Rate then the industry.

ACT 2012 – 2013 final adjustment and 2013 – 2014 renewal have now been processed. Premium paid to premium rate Premium has decreased by 3.99% from last year which includes a 5.62% increase in wages. Claim count, frequencies and average costs Based on 17 claims lodged for the 12/13 period the average net incurred amount is $4,781 There has been a gradual increase in wages each year since 2009 Drivers Illawarra Retirement Trusts main claims drivers are muscular stress related injuries followed by trips and falls Claims with incurred costs over $100,000 vehicle accident and muscular stress. Industry Premium Rate Industry premium rate is provide by your insurer based on a 5 year employer claims performance and the profitability of the insurer and your industry. Industry premium rates have continued to decrease currently at it s lowest of 5%

ACT

Average and Frequency looks at your average incurred claims cost amount against the average number of claims lodged per year Average incurred is calculated by dividing your total net incurred by the number of claims. Claims per $m in wages

ACT

Number of Claims shows the frequency of claims over the last 5 years

ACT Claims Costs graph Indicates the frequency of claims costs

ACT Industry premium rate shows the trending of your applicable rate per year

CED Offering 2011 – 2012 rebate CGU are offering the maximum rebate available as at renewal 30/06/2014 of $78, which is 20% of the premium charged 2012 – 2013 rebate CGU are offering the maximum rebate available as at renewal 30/06/2014 of $78, which is 20% of the premium charged

Importance of suitable duties Employees feel more supported by playing a more active role in there rehabilitation. Suitable duties are used as a pathway to recovery whilst injuries heal and minimises the costs associated to premium