2024 annual report - icare reports reform progress in year of continued change

2024 marked the conclusion and independent assurance of icare’s improvement program, a three-year reform agenda addressing the McDougall and Governance Accountability and Culture reviews. Transition to a panel of six claims providers for the Nominal Insurer, to improve outcomes for workers and employers, is being supported by stronger governance and accountability, a more constructive culture, and continuous improvement across icare.

icare remains focused on improving return-to-work rates, achieving long-term scheme sustainability, and improving the efficiency and effectiveness of the organisation. In 2024, icare: 

• expanded measurement of customer satisfaction measures, showing positive progress on prior years, with five out of nine targets achieved
• accelerated activity to improve efficiency, with a savings plan implemented to deliver operating expense savings over the coming years
• embedded a new operating model designed to strengthen culture and accountability, and support efficient and effective delivery of the organisational strategy.

While positive operational progress was made, icare operates within a complex ecosystem, with economic headwinds, legislative requirements, and social and cultural change having a material financial impact on some of icare’s schemes:

• Workers Compensation: A continued rise in psychological claims, and an increase in claims exceeding Whole Person Impairment thresholds, is driving a significant increase in claims costs and impacting long-term financial sustainability.
• Treasury Managed Fund: Historical abuse claims, higher volumes of claims for both physical and psychological injuries and significant climate events are impacting long-term financial sustainability.
• Home Builders Compensation Fund: Premiums are now at sustainable levels and the fund returned a small surplus despite increased builder insolvencies and building cost pressures.
• Other icare schemes: Lifetime Care, Dust Diseases Care, Compulsory Third Party Care and Sporting Injuries scheme performance remains positive.

Over the coming year, icare will continue to work with employers, partners and stakeholders to improve outcomes for workers, employers and the community. Embedment of icare’s new claims model, sustainable premium adjustments, and continued delivery of icare’s strategy will support long-term sustainability and ensure the organisation is well positioned to continue delivering insurance, support and care for the people and communities of NSW.

Read more in icare’s 2024 Annual Report