NSW shuts out specialised workers compensation insurers

The NSW government has announced that the state’s workers compensation system is now closed to any specialised workers compensation insurers.

NSW Industrial Relations Minister John Della Bosca said he had accepted a recommendation from the WorkCover Board to prevent new entrants.

“Prohibiting the entry of new specialised insurers will reinforce the recent achievements in stabilising and enhancing the NSW workers compensation system, by ensuring that it maintains a size and industry mix that helps to provide stable and affordable premiums,” he said.

“The WorkCover Board believed permitting the entry of new specialised workers compensation insurers would effectively involve the private underwriting of a significant section of the workers compensation scheme.

“This would not be in keeping with the November 2007 announcement that the NSW workers compensation scheme would not be privately underwritten.”

The decision was made effective immediately.