Freeze announced on eligible employers moving between claim service providers
Insurance and Care NSW (icare) has announced it will introduce a six-month freeze on employers moving between claim service providers (CSPs) while icare finalises the open market tender for new CSPs.
The open market tender for new claims and injury management providers was announced last month.
For employers currently eligible to move between providers, the freeze will begin on 15 July 2022 and end on 1 January 2023 when the successful tenderers for claims management services are to begin operations. By making this change, the freeze will minimise potential disruption over this transition period to the new claims model.
Any eligible employers who renew their policies prior to 15 July 2022 can still choose an alternate claim service providers at the time of their policy renewal.
These eligible employers will also be able to choose between any new claim service providers from 1 January 2023 when the new claims model comes into effect.
Frequently Asked Questions
Why has icare announced this freeze on eligible employers moving between claim service providers (CSPs)?
icare has announced this freeze while it finalises the open market tender for new claims service providers. The freeze will minimise potential disruption over the transition period to new providers who will begin operations on 1 January 2023.
Who does the freeze affect?
This freeze affects only those eligible employers whose policies renew between 15 July 2022 and 31 December 2022.
What is an eligible employer?
Employers currently eligible to move between CSPs have an Average Performance Premium (APP for conventional premium customers) or Base Tariff Premium (BTP for Loss Prevention & Recovery customers) greater than $500,000, or are part of a Group with Group APP or Group BTP greater than $500,000.Will the criteria for eligibility to move between claims service providers change under the new claims model at 1 January 2023?
No decision has been made at this time, but is under active consideration. Further information will be made available once a decision has been reached.When does the freeze start and finish?
The freeze will begin on 15 July 2022 and end on 1 January 2023 when the successful tenderers for claims management services are to begin operations.Will eligible employers be able to move CSPs before 15 July 2022?
Yes. Eligible employers who renew their policies prior to 15 July 2022 may still choose a current alternate CSP at the time their policy renews.What happens if an employer chooses to move to a CSP that is not recontracted in 2023?
Eligible employers will need to assess the impact of moving to an alternate claims service provider prior to the completion of the open market tender for new CSPs.
In December 2021, icare announced that the existing contract with EML and Allianz was extended to 31 December 2022. This aligns with the end dates of icare's agreements with GIO and QBE. This extension will cover the period necessary to allow for the procurement process for claims and injury management services to take place in 2022.
