On April 8, WorkCover released the new Gazette, please see attached Media Statement.
The recommended premium rates were published today in a Special Government Gazette and will come into effect from 4pm on 30 June 2014.
It is an average 6.7% decrease in rates.
This is good news for our clients but (and there is always a but) insurers will only be willing to pass these reductions on where the clients claims’ history support a reduction in costs or frequency or both, or an improved commitment to OSH.
It will also mean brokers will want to deliver better terms which in turn will put insurer under pressure.
Note also that some of the reasons that supported the rate reduction was Western Australia’s increasing wages growth (which obviously dilutes the cost of the system and therefore make the performance across the whole State look better). That puts a different slant on the naysayers saying the WA economy is slowing.
For any further information, contact Aurenda.