Whether you are a small or an experience-rated employer, your policy will now renew automatically.
icare will take care of most of the paperwork for you.
We will send you an invitation to renew your policy prior to the policy expiry date.
To calculate your premium, we will use the wage information we already have on your business, including apprentice wages if you employ apprentices. If you are experience-rated, we will also take into account your last three years of claims costs.
If you are a small employer and expect your wages to differ by 25 per cent or more, or if you are experience-rated and expect your wages to differ by 15 per cent or more, contact icare immediately so we can revise the premium amount appropriately.
Small employersYour premium document pack will be sent to you four weeks prior to renewal.
Experience-rated employersYour premium document pack will be sent to you after the policy renewal date.
Actual wages declaration
Employers are required to lodge an actual wages declaration form at the end of the policy period. This is a declaration of how much you have paid your workers in wages during the period.
icare will send you the form with your renewal document pack.
Depending on how much you’ve paid in wages during the policy period, your premium for the current policy period may be adjusted. You may be required to pay additional premium, or you may receive a refund.
Employers with a broker
If your policy has been managed by an insurance broker, the process won’t change.
Your broker will receive a notification that your policy is due for renewal and your broker will be noted on your policy.
The renewal premium document pack outlines how premiums are calculated in three steps.
It also clearly shows how premiums can be reduced through improved performance and various rewards and incentives. The three steps of the premium calculation are:
- Your average performance premium
- Your employer safety incentive
- Your claims performance
Your average performance premium
The Average Performance Premium (APP) is the starting point for all employers.
It’s calculated using an employer’s wages and applicable Workers Compensation Industry Classification (WIC) pool rate – that is, the rate attached to your pool of industries with similar risk.
Your employer safety incentive
The Employer Safety Incentive (ESI) is a premium discount to encourage employers to invest in safety and support systems.
The best way to reduce lost time through injuries is to invest in increasing workplace safety. In addition, the Employer Safety Reward (ESR) is available to all employers who maintain a safe workplace and have not incurred any premium-impacting claims for four consecutive years.
This reward is an additional discount off the Average Performance Premium which is delivered at the end of the policy year.
Your claims performance
The Claims Performance Rate (CPR) will reward employers by discounting their premium if they have a good record of managing worker safety and return to work over the previous three years.
The Return to Work Incentive (RTWI) is an incentive that rewards employers who proactively provide injured workers with sustainable return to work. It applies to claims made for policy periods after 30 June 2015. The table below shows how it is applied.
Discount 15% 10% 5% Return time 0- less than 13 weeks 13- less than 26 weeks 26- less than 52 weeks
Risk is calculated by benchmarking an employer’s performance against all businesses in the workers insurance scheme.
Reducing your premium
As an employer, you can reduce your premium by improving safety and proactively providing injured workers with a sustainable return to work.
These measures will be clearly shown under ‘Your Claims Performance’ on the new renewal form.
All employers will benefit if the scheme average is improved through better performance across the board – premiums come down as risk is reduced.