Month: June 2022

Following a recent review by the NSW State Government, iCare can confirm that NSW workers compensation premiums will increase on policies due for renewal from 30th June 2022 onwards. This modest increase aims to balance the cost impacts faced by NSW businesses as a result of recent natural disasters, COVID-19 and other global inflationary pressures.

What this increase means for you:

• It can be expected that 50% of rates will not change, with the other 50% increasing by an average of 2.9%;
• Monthly installments will be available to anyone with an average performance premium of over $1,000.00;
• Late payment fee has been set at 0.647% for any overdue debts.

iCare has confirmed that the LPR adjustment factors will also increase for the period 30/06/2022 – 30/06/2023 as outlined in the table below:

Reforms introduced as part of the Hayne royal commission mean that a failure to comply with certain AFS licensing obligations – including obligations relating to how cyber risks are addressed – may give rise to a civil penalty. This was precisely the situation a financial services firm found themselves in when recently, they were prosecuted by ASIC for failing to comply with these obligations. According to Insurance News, their Cyber policy was too lax.

For this reason, it is so important to ensure your business has adequate cyber risk management systems in place to manage cybersecurity risks or you could risk facing prosecution.

Some risks that you and your clients could be exposed to if you don’t have a sufficient risk management strategy in place are:

• Compromise of confidential data
• Fraudulent emails requesting funds to be transferred
• Ransomware
• Unauthorised access to servers.

Below are some examples of how you could minimise this risk:

• Password-protect documents sent via email which contain personal client information;
• Avoid using personal email addresses like Gmail;
• Use passwords for IT devices and implement a password policy;
• Use up-to-date security software including anti-virus;
• Assess software annually for currency and apply patches regularly;
• Have an “acceptable use” policy for staff;
• Back up data regularly, store backups securely, and test them regularly;
• Implement physical security requirements such as locking premises and having a clean desk policy.

If you would like more information on how you can improve your businesses cybersecurity position then please reach out to us on (02) 9587 3500, or at theteam@wsib.com.au

Traditionally, the insurance market has been cyclical and we saw premiums rise and fall over a 7-10 year period. However, as a result of the ongoing catastrophes in the last five years (outlined in the table below), alongside low interest rates, high inflation, and supply chain issues the market has been faced with unprecedented times and the hardest insurance market there has ever been. Clubs are being faced with significant premium increases and reduction in cover by insurers in order for them to rectify historically unpredictable results. It is of our opinion that this increase is the new benchmark and premiums are unlikely to fluctuate drastically in future but rather rise and fall by 5-10% around the ‘new normal’.

In order to manage the increase in premiums and increase your businesses appeal to insurers it is important now more than ever to have a solid risk management plan in place.