Board communiqués

At the SIRA Board meeting held on Friday 5 April 2024 at 231 Elizabeth Street, Sydney, representatives from TCorp, investment manager for the Insurers’ Guarantee Fund, presented a review of the position of the fund and its performance. The Board was pleased to hear that the fund is in a strong position with assets considerably exceeding liabilities and its performance has more than met its objectives over the long term. The Board agreed to the recommendation to move to a Total Portfolio Approach for the management of the fund and approved a new Reference Portfolio and Asset Allocation Ranges. The IGF has a high likelihood of meeting its future objectives.

The Board discussed the NSW Auditor General’s workers compensation claims management report which had been released a few days before the Board meeting. It provides recommendations for icare, NSW Treasury and SIRA designed to improve claims management and the operation of the system. SIRA accepts and is already progressing the implementation of its two recommendations.

The Board was briefed on the latest developments regarding the Treasury Managed Fund (TMF) Review report, which was compiled following extensive consultation with specific stakeholders. Overall, stakeholders have supported the report's findings and proposed actions. SIRA is yet to publish the TMF review.

The Board received a verbal briefing on the audit being conducted by SIRA regarding Home Building insurance compliance to protect homeowners. SIRA has completed reviews of 790 building projects undertaken by 25 builders and issued cautions to 9 builders in February primarily due to the businesses unlawfully taking deposits without insurance in place. The Board was pleased to learn that in all cases the projects were later insured, or insurance had been applied for. SIRA is maintaining ongoing communication with the Building Commissioner and icare, providing regular updates on the progress of insurance compliance.

The Board received an update on the analysis of the CTP Care Operating Cost Model, noting the legislative changes that were enacted in 2022. The changes grant SIRA the authority to establish the maximum amounts concerning claims handling costs of the Lifetime Care and Support Authority (LCSA) under the Act, within a specified timeframe. It is expected consultation with LCSA will commence shortly.

The Board received a quarterly update on SIRA’s implementation of Value-Based Healthcare (VBHC) in personal injury schemes and health regulation. SIRA is close to activating all 21 initiatives within the implementation plan for VBHC in the NSW Workers’ Compensation and Compulsory Third-Party Schemes and is on track to realise almost $40 million in savings. SIRA launched the “Model of Care for the Management of Low Back Pain” on 20 February 2024, a best practice guide for practitioners that should help empower injured people in their recovery journeys. The Board noted that the SIRA VBHC Advisory Committee, which is comprised of senior representatives from all aspects of the personal injury sector including those with lived experience of the schemes, continues to provide ongoing support and aids SIRA’s work to achieve its ambitious VBHC goals and actions.

Prepared by: Trevor Matthews

Chair, SIRA Board

On Friday 16 February 2024 at 231 Elizabeth Street, we held a SIRA Audit and Risk Committee, (ARC), in the morning followed by our Board meeting in the afternoon. The composition of our ARC is changing. Dr Abby Bloom chaired her last ARC meeting and at the conclusion of the meeting handed over to a new independent chair, Christine Feldmanis. She is joined on the committee by two other independent members, Lyn Baker and Kerry Adby. The ARC has served us well and we are confident that under the new chair it will continue to add value to SIRA.

At the Board meeting SIRA’s Acting Chief Executive, Dr Petrina Casey, introduced two presenters from the New South Wales Treasury Corporation (TCorp) who manage the Insurer Guarantee Fund on our behalf. They introduced the Board to the Total Portfolio Approach to investment management and contrasted this to Strategic Asset Allocation. We will continue to receive information on the total portfolio approach at future meetings.

We received a regular finance update, and it was pleasing to see that SIRA continues to meet all its NSW Government budgetary requirements.

The Board was advised that SIRA has finalised a review of the Treasury Managed Fund which includes a compliance audit and performance review of Government agencies’ workers compensation claims. It is expected that the report will be released shortly.

Conditions in the building industry continue to be of concern with the rate of building industry insolvencies nearly doubling last financial year to 981 construction companies in NSW entering external administration compared to 513 in the previous year. This will have implications for claims under the Home Building Compensation Scheme.

The Board noted an update on the Compulsory Third Party Transitional Excess Profits and Losses (TEPL) assessment.  SIRA announced the TEPL assessment in November 2023 and identified $183.1 million in excess profits from the 2018 and 2019 accident years. SIRA will recover these funds from insurers in 2024 with the goal of maintaining the affordability of CTP insurance through subsiding levies.

Prepared by: Trevor Matthews

Chair, SIRA Board

At the SIRA Board meeting held on Friday 1 December 2023 at 231 Elizabeth Street, Sydney, SIRA’s Chief Executive, Adam Dent, informed the Board that the new Secretary for Digital, and Department of Customer Service, Graeme Head AO, commenced in the role on 27 November 2023.

The Board approved a revised Statement of Investment Beliefs and an updated Investment Policy Statement for the Insurers’ Guarantee Fund which funds the claim payments for the remaining liabilities for insolvent Workers Compensation insurers. The Board considered a report on the fund’s investment performance that earlier in the day had been presented by representatives of T-Corp, the fund’s investment manager, to the SIRA Audit and Risk Committee and was advised that the fund continues to be in a very sound financial position.

The Board received a presentation regarding Workers Compensation Self and Specialised insurers specifically in relation to active and current claims and a statistical analysis of payments.  It was noted that the 70 Self insurers and the 6 Specialised insurers that are responsible for 8.5% and 7.3% of the systems’ active claims respectively have consistently achieved better Return to Work rates than the system.

SIRA staff provided the Board an update on various Workers Compensation Policy initiatives.

The Board noted an update on the supervision of the icare Home Building Compensation Fund (HBCF). The Board approved the publication of key performance indicators regarding icare’s handling of Home Building Compensation Fund claims. SIRA published the final key performance indicators for the period to June 2023 as of 7 November 2023 and expects to update the indicators on a quarterly basis.

The Board was provided an update on SIRA’s Customer Experience Framework which will be launched in 2024. Further work will be undertaken by SIRA’s directorates to implement the Framework within the Authority, with collateral materials such as a language guide to be developed in parallel.

The Board received a presentation from the Independent Review Officer, Simon Cohen, who was approaching the end of his term.  He described IRO operations throughout the 2023 financial year, upcoming projects to be commenced during the next 12 months and discussed with the Board the Independent Legal Assistance and Review Service (ILARS) expenditure.

The Chair thanked members of management for their commendable efforts during the year and asked for those thanks to be passed on to SIRA staff.

Prepared by: Trevor Matthews

Chair, SIRA Board

At the SIRA Board meeting held on Friday 27 October 2023 at 231 Elizabeth Street, Sydney, SIRA’s Chief Executive, Adam Dent, advised that he has had the opportunity to brief our new Minister, the Hon. Anoulack Chanthivong, about SIRA related issues. The Minister also has the following portfolios: Better Regulation and Fair Trading, Building, Corrections, Industry and Trade, and Innovation, Science and Technology.

It was noted that several of these are of direct relevance to SIRA.

The Chief Executive provided the Board with an update on the Law & Justice Standing Committee’s inquiry into the 2023 Review of the Workers Compensation Scheme. Mr Dent confirmed since SIRA’s original submission into this inquiry, an addendum has been made to account for updated data from two further financial years; 2021-22 and 2022-23, as well as insights on shifts in trends or financial impacts since the original submission.

The Board received a regular update about icare’s Improvement Program which is designed to deal with the recommendations of the McDougall Report and a Governance, Accountability and Culture Review carried out by PricewaterhouseCoopers.

The Board was advised that a report about the Treasury Managed Fund (TMF) based on a review of over 900 claim files has been drafted and will be circulated to seek targeted external stakeholder feedback. before publication. The TMF Review report will include data analysis, employer audits, stakeholder interviews, surveys, and insights.

The Board noted an update on the Building Legislation Amendment Bill 2023, which was introduced by the Government into Parliament on 12 October 2023. The Bill will enable regulations to be made to exempt from home building compensation insurance the development of low-rise strata schemes if the developer instead buys a new form of long term “decennial insurance”. The Department of Customer Service has committed to consulting SIRA before any regulation is made under these provisions.

The Board received an update on the Law and Justice 2022 Review of the CTP Scheme recommendations by virtue of which SIRA, in consultation with stakeholders, has investigated jurisdictional issues relating to interstate accidents and CTP claims with a view to identify or implement potential solutions.

The Board considered a  SIRA Board Self-Assessment for 2023, which concluded that the Board is  appropriately fulfilling its key responsibilities and legislated functions, is operating effectively and is well supported administratively. The Board approved an Action Plan to make further improvements.

A highlight of the meeting was a presentation of SIRA’s People Matter Employee Survey results which saw SIRA’s engagement score increase by 2 percentage points to 75%, exceeding the Cluster average of 73%. It was noted that SIRA has prioritised employee engagement in recent years and that the results demonstrate a strong commitment to creating a positive workplace culture. SIRA’s most improved area was Teamwork and collaboration (81%) which increased by 6 percentage points from the previous survey. The Board congratulated management on these splendid results.

The Board meeting was followed by a joint meeting of the Boards of icare and SIRA which provided the opportunity to discuss matters of mutual interest.

Prepared by: Trevor Matthews 
Chair, SIRA Board

At the SIRA Board meeting held on Friday 29 September 2023 at 231 Elizabeth Street, Sydney, SIRA’s Chief Executive, Adam Dent, informed the Board that the Annual Business Plan for 2023/24 and a final report on progress for the 2022/2023 year had been launched at SIRA’s September Town Hall. He explained that the plan was well received and that the SIRA team is working hard to achieve the challenging 2023/2024 plan objectives.

A highlight of the meeting was an update on SIRA’s Value Based Healthcare project which incorporates new health provider regulation. The Value Based Healthcare concept has gained considerable momentum not just in NSW but also in other states and overseas. The update provided that the projected  annual savings of $40 million in health expenditure are on track to be realised in the  workers compensation scheme.  An important part of the project has been the development of a Model of Care for Low Back Pain which affects approximately 18,000 claimants in SIRA schemes each year. One of the next initiatives will be developing a model of care for psychological injuries, an increasing area of concern. The Board thanked and complimented the SIRA team for leading this significant work.

The Board received reports from the Chairs of the CTP Premium Committee and the Audit and Risk Committee, which had met earlier in the day.

The Board noted an update on SIRA’s plan regarding delivery of the government’s commitment to provide workers compensation benefits to gig economy workers. Further work will be undertaken on how this might include other relevant industry sectors.

The Board was advised that there had been a jump in the number of builders entering administration in the past year (981 v 513 the year before). This will result in an increase in claims on the Home Building Compensation Fund. SIRA has commenced an audit of builders to check that they have the required insurances in place to protect their clients.

The Board noted that a report prepared by SIRA on the bi-annual Statutory Review of the Personal Injury Commission Act 2020 was tabled in parliament in August 2023. The report found that the policy objectives of the Personal Injury Commission, remain valid and included two recommendations regarding a fit for purpose legislative framework for the Independent Review Office, and review of the dispute resolution model.

The Board received and considered a number of papers regarding CTP matters including the Transitional Excess Profits and Losses (TEPL) assessments, updates to the CTP Fund Levy, revisions to the premium assumptions for the coming year and a new set of Motor Accident Guidelines.

The Secretary of DCS, Ms Em Hogan attended the latter part of this meeting and expressed her gratitude for the efforts of the SIRA staff, management and Board. The Board thanked her for her leadership and support and wished her well in her future career.

At the SIRA Board meeting held on Friday 25 August 2023 at 231 Elizabeth Street, Sydney, SIRA’s Chief Executive, Adam Dent, informed the Board that the Workers Compensation Assist Evaluation report has been delivered and supports the ongoing delivery of this valuable service.

The Board noted the three new recommendations introduced to the SIRA Reviews and Inquiries report, following the 2022 Review of the Compulsory Third Party Insurance Scheme. Work will commence on these recommendations and an update will be provided at the next reporting period in November 2023.

The Board noted the content of the Annual Complaints Report, which includes a summary of high level trends in conjunction with the current complaint themes. Under the new service level standards, SIRA aims to finalise complaints triaged for Early Resolution within 20 working days and complaints triaged for Complex Resolution within 90 business days.

The Board noted that the State Insurance Care and Governance Amendment Bill 2023, introduced on 28 June 2023 and led by NSW Treasury, was passed by Parliament on 3 August 2023 and is awaiting assent.

The Board was informed that the Government’s approach on the election commitment to review the Home Building Compensation Fund, currently remains under consideration. SIRA has provided the Minister further information on the key risks involving the scheme.

The Board approved SIRA’s proposal for the reviewed Premium Relativities Schedule and Risk Equalisation Mechanism (REM) Schedule, both effective 15 January 2024. The Board was informed these reviews occur annually to provide current data and experiences for the CTP scheme and are undertaken by SIRA and the scheme actuary, Ernst & Young (EY).

Prepared by: Trevor Matthews 
Chair, SIRA Board

At the SIRA Board meeting held on Friday 28 July 2023 at 231 Elizabeth St, Sydney, SIRA’s Chief Executive, Adam Dent informed the Board that the SIRA Innovation Framework was recently launched at an all staff meeting. He also reported that the refresh of SIRA’s Annual Business Plan for FY23/34 is well underway.

The Board agreed to carry out a self-assessment and performance review in accordance with the SIRA Board Charter.

A key item on the agenda was an update on recent work to develop a series of SIRA risk appetite statements, and a refresh of SIRA’s enterprise risks. After a good discussion the Board approved the proposals and looks forward to regular monitoring against the new risk appetite statements.

The Board received an update on the endorsement made out-of-session, regarding an amendment to the 2023-24 budget. Further comparisons of the 2023-24 budget to draft actuals for the FY2022-23 were presented to the Board. and after discussion the Board noted the SIRA draft year-end financial statements.

The Board endorsed a new accounting policy which has been developed for transitional excess profits and transitional excess losses (TEPL) in line with a 2022 recommendation by the Audit Office that SIRA develop an accounting policy to consider all possible events in the TEPL mechanism and the associated accounting treatment.

The Board was informed that, the Government introduced the State Insurance and Care Governance Amendment (icare Board) Bill 2023 on 28 June 2023 which amends the State Insurance and Care Governance Act 2015 to provide for the appointment of directors nominated by employee and employer bodies to the icare Board. This work is being led by NSW Treasury.

The Board received an update on the review of both the NSW Compulsory Third Party Insurance Scheme (CTP Scheme) and the Lifetime Care and Support Scheme (LTCS Scheme), conducted by the NSW Law and Justice Parliamentary Standing Committee. The Government response to both reviews has been published on the NSW Parliament website as at 23 June 2023.

Finally, the Board reviewed the scheme design framework and the six scheme design principles that SIRA will use to enable the design and administration of the NSW Personal Injury Schemes to drive sustainability. SIRA plans to further test the principles with an expert roundtable scheduled for September 2023.

Prepared by: Trevor Matthews 
Chair, SIRA Board

At the SIRA Board meeting held on Friday 26 May 2023 at 231 Elizabeth St, Sydney, SIRA’s Chief Executive, Adam Dent, confirmed that SIRA now sits under the Finance portfolio, reporting to The Hon Courtney Houssos, MLC. He also advised the SIRA Board that the second SIRA Employee Survey results pleasingly were in line with those of the first survey and he noted some areas of focus in advance of the next survey.

The Board received an update on priority programs within the motor accident scheme and regulatory activities, including information on the work currently underway on the Statutory Review of the Personal Injury Commission Act 2020 (the PIC Act), which is due to be tabled in Parliament by August 2023.

The Board received a presentation on the draft report relating to the costings for the various models for legal supports, including costing the Independent Legal Assistance and Review Service (ILARS).

The Board were informed of the preliminary findings from the draft Preliminary Industry Profit Margin (PIPM) Assessment for the 2018, 2019, 2020 and 2021 Accident Years. The PIPM was prepared by the CTP Scheme Actuary, in accordance with clause 4.1 of the Motor Accident Guidelines – Transitional excess profits and transitional excess losses (TEPL Guidelines) and the TEPL Preliminary Assessment report. The Board also received a Peer Review Report by a second set of peer review actuaries. After some discussion the Board agreed to recommend to the Chief Executive that he should proceed to the next step in the TEPL Process by requesting the Scheme Actuary to undertake the Reassessed Industry Profit Margin Report for the 2018 and 2019 Accident Years but defer consideration of the other Accident Years to a future date. The Chair thanked those involved for their excellent work and especially commended the efforts of the CTP Premium Committee.

The Board were provided an overview of key strategic risks and focus areas for Workers Compensation Regulation including an update on icare’s performance and supervision. The Board were advised that SIRA is closely monitoring the implementation and progress of icare’s Improvement Plans.

The Board were given an update on the TMF Review and was informed that staff from different areas of SIRA had been seconded to progress the review rather than using outside consultants.

The Board also were informed about the review being conducted by McGrathNicol of icare’s compliance with its obligations in respect of the eligibility decisions for builders in regard to the Home Building Compensation Fund.  This is particularly important at the present time because many builders are under stress due to the economic conditions.

Finally, the Board received a Quarterly Complaints Report together with an update on SIRA’s continuing work developing and implementing the complaint resolution framework for the Feedback & Complaints team. The Board were pleased to note the steady decline in Workers Compensation complaints from the third quarter 2020.

Prepared by: Trevor Matthews 
Chair, SIRA Board

At the SIRA Board meeting held on Thursday, 27 April 2023 at 231 Elizabeth St, Sydney, SIRA’s Chief Executive, Adam Dent, provided the SIRA Board with an update on the implementation of the Regulatory Framework which was launched at the recent SIRA All Staff day. The Framework sets out the regulatory approach SIRA is taking to deliver its regulatory functions under the State Insurance and Care Governance Act 2015.

The Board noted an update on those election commitments of the incoming Government that will potentially impact the Home Building Compensation Regulation Fund due to an overhaul of building and construction in NSW.

The Board received an update on the status of icare’s premium filing, noting that SIRA is required to assess and determine its position by 21 May 2023. An update was also provided on the performance of icare, specifically around the implementation and progress of the improvement plans in place. The Board was informed of the results of SIRA’s second Nominal Insurer audit, including in relation to the operation of the Guidewire reporting system. The Board also received a presentation relating to return to work data and efforts to improve the current rates.

The Board was advised that as a result of the Motor Accidents Injuries Amendment Bill 2022, an adjustment of the Risk Equalisation Mechanism (REM) Schedule was required to reflect the increased payments for the extended no-fault statutory benefit period, particularly relating to motorcycles. This will result in an increase of the cross subsidy for the motorcycles by all other vehicle classes by $1.81 to ensure affordability and market competitiveness.

The Board approved the proposed Board reporting refresh, which has been developed to provide greater insights into SIRA’s regulatory and scheme performance and its strategic achievements measured against the SIRA2025 strategy.

Following the Board meeting, Board members welcomed members of the Board of icare to a discussion about matters of mutual interest. This focussed on recent developments, current plans and the implementation of the improvement programs icare has underway in which SIRA has a keen interest.

Prepared by: Trevor Matthews 
Chair, SIRA Board

At the SIRA Board meeting held on Friday, 17 February 2023 at 231 Elizabeth St, Sydney, Adam Dent, SIRA’s Chief Executive, referred to the launch of SIRA’s Annual Business Plan for 2022-2023 at a SIRA Town Hall in Gosford on 14 February 2023. SIRA has made substantial progress in delivering the SIRA2025 Strategy as outlined in the plan. Of the 53 strategic deliverables listed in the Business Plan, at the end of Quarter 2, 2022-2023 64% (34) are on track and 20% (10) have been completed.

The Board was advised that since the September 2022 Board Meeting, all 23 recommendations from the 2021 Statutory Review of the Motor Accidents Injuries Act 2017 have now been implemented or closed. Two of the recommendations of the 2020 Review of the Workers Compensation Scheme continue to show a moderate likelihood of delayed delivery, and a number of mitigating activities are underway to continue to monitor and manage these activities closely. SIRA’s Audit, Risk and Compliance team will conduct an internal audit on the ‘Reviews and Inquiries Report’ as part of the FY23 Audit Plan which will review governance processes and undertake a follow up review on a sample of completed recommendations to verify obligations have been met. The audit will focus on the current February 2023 update and will provide findings to improve the reporting process.

The Board received a regular update on SIRA’s financial status. As of 31 December 2022, SIRA had net assets of $300 million with sufficient assets to address both current and non-current liabilities and is operating within all NSW Treasury budget controls.

The Board noted an update about the Home Building Compensation Scheme. Although the number of construction industry insolvencies and claims reduced in the December quarter after peaking in the September quarter the insolvency and claim risks remain elevated given challenging market conditions and the possible impact of expected further interest rate rises.

The Board was provided with an overview of key strategic risks and focus areas for Workers Compensation Regulation including proposed legislative reforms in the State Insurance and Care Legislation Amendment Bill 2022. SIRA is preparing a presentation for the incoming Minister on the key issues in the workers compensation system, the need for review and the options and approach for review and reform.

An update was provided to the Board on how SIRA is closely monitoring the implementation and progress of icare’s improvement plans through monthly engagement at both executive and operational levels, specific meetings with the independent assurance provider, Promontory, and separate deep dives into sections of icare’s plans and performance. SIRA has recently published a second audit of icare’s claims management.

This study of activity during the first four weeks of 50 claims revealed some improvements but also some continuing concerns.

Mr John Trowbridge, an independent consultant, presented an analysis of recent Return to Work (RTW), performance which revealed for the first time the extent of variation in how RTW rates vary by industry group and by size of employer. A second presentation by Professor John Buchanan looked at broader trends and prompted a discussion about desirable longer term system changes. All agreed however that in the short term it is important to improve claims management across the entire system.

The Board was provided an update on the Motor Accidents Insurance Regulation (MAIR) CTP policy program, CTP Scheme performance, the monitoring of insurers and motor accident scheme activities including legislative amendments passed by the Motor Accident Injuries Amendment Bill 2022, which responded to 15 priority Statutory Review recommendations.

The Board received an update from the Feedback and Complaints Team on how the development of the new Salesforce environment for complaints handling is progressing. Currently scheduled for completion in July, it will allow for a more detailed breakdown of complaint types, themes, trends, and insights.

Finally, the Board thanked outgoing Executive Director, Theresa Fairman, for her excellent service and wished her well for her future career.

Prepared by: Trevor Matthews 
Chair, SIRA Board

At the SIRA Board meeting held on Friday, 25 November 2022 at 231 Elizabeth St, Sydney, SIRA’s Chief Executive, Adam Dent reported on the 2022 People Matter Employee Survey, wherein SIRA achieved record high employee engagement results for the agency. Employee engagement for SIRA in total improved from 67% to 73%. The Board noted that each of SIRA’s four Divisions improved substantially on last year and SIRA exceeded the DCS Cluster results in the majority of measures and was within 1% of the main engagement score. SIRA outperformed the sector overall averages on almost all measures. An improvement of this magnitude is quite unusual; and Board members complimented the Chief Executive and the management team on the results. The Board was also advised that a program of work is well advanced to action areas for growth and further improvement identified in the survey. This SIRA-wide action plan for 2023 will be announced at the upcoming SIRA Staff Townhall meeting.

Board members received an interesting presentation from Simon Cohen, Independent Review Officer in relation to his office’s major accomplishments over the past 12 months and future plans. The mission of the IRO is to help persons who are injured at work or in motor accidents and insurers find fair solutions to complaints and claims, and to recommend improvements to the statutory compensation schemes for workers compensation and motor accident injuries.

Mr Cohen also addressed the Board on the trends in the costs of the Independent Legal and Assistance Review Services.

The Board welcomed SIRA’s newly appointed Director of Home Building Compensation Regulation, Richard Potts. The Board was informed of SIRA’s review of icare’s compliance with obligations under the Home Building Act 1989 and the NSW Self Insurance Corporation Act 2004 and the audit of icare’s case management in relation to home building claims that was almost complete.

The Board noted the commencement of CTP Care on 1 December 2022. CTP Care will act as the insurer of people injured in a motor vehicle accident on and from 1 December 2017 who require ongoing treatment and care statutory benefits for more than five years after the date of their accidents. These claims will be transferred to the Lifetime Care and Support Authority (LCSA). The Board was provided an update on the operational readiness of this transition and noted the introduction of a new policy framework and guidelines. The Board was also appraised of the role of the Independent Review Office in relation to the investigation of complaints regarding claims handling practices within the LCSA, which was also discussed in greater detail during Mr Cohen’s presentation.

The Board received regular updates about the workers compensation and compulsory third-party schemes and at the Audit and Risk Committee earlier that day, spent time discussing the recent well publicised cyber incidents. The message is clear: all employees need to be continually vigilant to guard against these attacks.

Finally, the Board thanked outgoing CFO, Ms Sharon Blake, for her excellent service and wished her well for her future career.

Prepared by: Trevor Matthews 
Chair, SIRA Board

After opening the SIRA Board meeting on Friday, 30 September 2022 held at 231 Elizabeth St, Sydney, the Chair congratulated board member Dr Graeme Innes on his two recent appointments - to the board of the National Disability Insurance Agency and as Chancellor Designate of Central Queensland University. Both organisations will benefit from his experience and wisdom.

Most members had attended an Audit and Risk Committee that morning and the SIRA Chief Executive’s Awards event the previous evening where staff were recognised for outstanding effort and achievement in nine categories. The Chair passed on the board’s congratulations to the winners and thanked and congratulated management for hosting the inspiring event.

At the board meeting members received a presentation from Promontory in relation to their Third Quarter Independent Review of icare’s Improvement Plan which is designed to address the recommendations from the McDougall and Governance, Accountability and Culture Reviews.  This sparked a useful discussion.  SIRA continues to monitor closely the implementation and progress of icare’s Improvement Plans through monthly engagement at both executive and operational levels, in addition to ongoing consultation with Promontory.

Board members were interested to receive updates about some Workers Compensation self insurers and specialised insurers where SIRA has imposed regulatory actions designed to improve scheme performance.

Ms Nancy Milne OAM, Chair of the SIRA Compulsory Third Party (CTP) Premium Committee, reported on a recent lengthy meeting which considered all aspects of the Premium Determination Review, discussed later on the agenda.

The Board was informed that the consultation period for the response to the IPART recommendations concerning the Home Building Compensation Scheme had closed and SIRA is now undertaking a review of the submissions, including the further modelling that may be necessary to support recommendations. SIRA is planning to submit a detailed brief to the Minister’s Office by the end of September recommending the consultation outcomes and next steps.

The Board noted that Cabinet has approved SIRA to lead the co-ordination and administration of a review into the adequacy of the legal, financial, physical and mental support provided to workers diagnosed with dust diseases including silicosis.

The Board noted that briefings on SIRA’s new Data Analytics Platform have been held in Sydney, Wollongong and Newcastle, generating positive feedback.

The Board received a presentation from the CTP Team in relation to the annual Premium Determination Review. This is a complex process that involves consideration of changes in claim costs and economic conditions, the provisional Transitional Excess Profit and Loss, (TEPL), results for Accident Years 2018, 2019 and 2020, and determination of the three levies that must be financed from CTP premiums. SIRA is responsible for the Motor Accidents Injury and Care Benefits and the Motor Accidents Operational Fund levies while icare which administers the Lifetime Care and Support Scheme (LTCS) sets the LTCS levy. Once all elements are finalised SIRA will publish the Review with the intention that the new rates will be effective from 23 January 2023. Good claims performance, control of expenses and benefits from clawing back excess profits from insurers for the 2018 Accident Year have helped restrain the premiums charged to motorists in 2022.

At the Awards event the previous evening the Hon Victor Dominello praised the TEPL innovation and commented that he thought it is a genuine world first.

Prepared by: Trevor Matthews 
Chair, SIRA Board

One of the seven goals in our SIRA2025 Strategy is “enhancing our capability through digital.” SIRA has recently strengthened its digital and data credentials and at the SIRA Board meeting on Friday, 26 August 2022 held at 231 Elizabeth St, Sydney board members received a presentation from two teams. The Board stressed the importance of developing up to date, accurate data and making that data available not just to SIRA experts but also to the wider community. The Board  was provided with a summary of the psychological injury data presented in a recent SIRA submission to the NSW Law and Justice Committee.

Ms Nancy Milne OAM, Chair of the SIRA Compulsory Third Party (CTP) Premium Committee, reported on the recent meeting where the Committee expressed satisfaction with a newly framed CTP Premium, Market and Customer Insights Monitoring Report, which delivers valuable analysis and insights and will be produced on a quarterly basis going forward. The Committee received a presentation from the CTP Scheme Actuary, EY, on the annual review of CTP Premium Relativities and SIRA’s Risk Equalisation Mechanism. Having considered the Committee’s endorsement and the Premium Parameters Review: CTP Premium Relativities and REM presentation, the Board approved the recommendations.

The Board considered the CTP Scheme Performance and Monitoring Update with respect to developments in the CTP policy program, CTP Scheme performance, the monitoring of insurers, customer experience and motor accident scheme activities. In the year ending 30 June 2022 SIRA issued thirty-nine regulatory notices to insurers concerning issues such as the communication of entitlements, the timeliness of decisions and the quality of customer service.

In the workers compensation area, the Board was informed that the performance of the Nominal Insurer continues to be of concern, with SIRA having raised this with icare and Treasury.  SIRA continues to monitor closely the implementation and progress of icare’s Improvement Plan. The Board will be provided with a further update on this matter at the September meeting.

The Board received an update on the SIRA Value-based Healthcare (VBHC) Implementation Plan, including a review of the SIRA healthcare dashboard on costs and outcomes. SIRA is developing a back pain model of care in a joint project with the Agency of Clinical Innovation. Back pain is a major source of healthcare costs and poor outcomes in the workers compensation and CTP schemes.

The Board was provided updates on:

• a review of icare’s new eligibility assessment model for major builders that provide insurance cover under the Home Builders Compensation Fund (HBCF)
• the HBC Enforcement Project which aims to research, review, and determine possible non-insurance by residential building companies
• the recent failures of builders Willoughby Homes and Oracle Homes and
• the response to SIRA’s Home Building discussion paper arising from the IPART recommendations.

The Board noted that, at the request of the Heads of Workers' Compensation Authorities (HWCA), SIRA will work with other jurisdictions to develop best practice workers’ compensation principles for workers with silicosis and related diseases. As NSW currently chairs HWCA, SIRA will lead and co-ordinate this work.

At the SIRA Board meeting on Friday, 27 May 2022 at 231 Elizabeth St, Sydney the Board received an update on the recent media reports relating to the home construction sector.

The Board was informed that despite a surge in new home construction, builders are under financial pressure because of increasing costs, delays in the supply of materials and a shortage of labour. It was noted that homeowners are being advised to contact their builders directly or seek assistance from NSW Fair Trading. The Board was also advised that SIRA is expecting to publish a discussion paper soon about possible reforms to the Home Building Compensation Scheme following a review by IPART.

A Senior Economist from the NSW Treasury Corporation, TCorp, delivered an economic update to the Board. TCorp is the manager and trustee of the IGF Investment Trust, one of the funds for which SIRA has responsibility. As well as information about the recent increase in inflation and the likely increase in interest rates the presentation included data about Sydney commuter activity based on monitoring vehicle movements in railway station parking areas. This showed that activity during weekdays has bounced back and is now at higher than pre-Omicron levels. This has implications for our Compulsory Third Party Scheme.

Ms Nancy Milne OAM, Chair of the SIRA Compulsory Third Party (CTP) Premium Committee, provided an update from the Committee’s recent meeting and after reviewing a routine progress report for the scheme the Board endorsed a recommendation for the Chief Executive to request the scheme actuary to commence assessment of the Reassessed Industry Profit Margin for the 2018, 2019 and 2020 Accident Years. This is the next step in determining any insurer excess profits that may be clawed back in future to benefit policyholders. A further report to the board presented commentary and costings on recommendations arising from the Statutory Review of the CTP scheme carried out by Clayton Utz and Deloitte. SIRA intends to pass on its recommendations to the Minister for consideration.

The Board was brought up to date with the progress of the State Insurance and Care Amendment Bill 2022 which has been debated in the lower house of the NSW Parliament and is designed to strengthen governance and regulation and clarify agency roles in the NSW workers compensation system. The Board noted with concern the continuing decline in return to work rates across the workers compensation system.

The Board reviewed a regular SIRA Finance Report and approved the 2023 SIRA Budget and also a set of Budgetary Guidelines for the Statutory Programs for which SIRA is responsible.

In 2021 SIRA commissioned former NSW Deputy Ombudsman, Chris Wheeler, to review SIRA’s complaints handling practices and procedures. The Board discussed the results and approved a new Complaints Handling Policy. Implementation of the new policy and associated procedures should ensure an improvement in the experience of our customers.

Trevor Matthews
Chair, SIRA Board

The SIRA Board held its second meeting of 2022 on Friday 25 March.

The Board considered a report which summarised progress with implementation of 165 recommendations that have arisen from 16 different inquiries and reviews over recent years. It was noted that 53 have been implemented and closed and 112 are in progress.

The Board discussed SIRA’s initial responses to the recommendations from the Statutory Review of the Motor Accident Injuries Act 2017 (Statutory Review) and the formal advice that is to be provided to Government at the end of this month.

The Board received an update on the status of the McDougall Review of the State Insurance and Care Governance Act 2015 and regular updates on workers compensation and the home building scheme, including advice on further builders who have entered administration this month.

One of the McDougall recommendations is for the government to review the complex workers compensation system which has not been the subject of a legislative rethink for 30 years. This will be a major undertaking but provides the opportunity for updating and simplifying the system.

The Board discussed the progress of the Nominal Insurer against its enterprise and improvement plans.

One of the features of the CTP update was a summary of insurer business plans as reviewed by SIRA. The Board also considered two deep dives into aspects of the system.

The CEO detailed plans for the SIRA Strategy 2025 Launch event on Monday 28 March, and the Board congratulated the team on producing a clear statement of strategy. It was noted now that the key is successful execution.

Trevor Matthews
Chair, SIRA Board

The SIRA Board held its first meeting of 2022 on Friday 25 February.  

The main item on our agenda was the SIRA Strategy 2022 – 2025 (SIRA Strategy). The SIRA Strategy document is the result of an extensive process which has involved discussion sessions with many staff, executives and board members. The Board offered some additional suggestions and was very happy to endorse the new SIRA Strategy. The CE plans to launch the SIRA Strategy at an all staff meeting on 28 March.

A further major item on the agenda was consideration of a paper dealing with the Statutory Review of the Motor Accident Injuries Act 2017 (Statutory Review). This review, conducted by Clayton Utz and Deloitte was published in November 2021 and contains 73 recommendations. The Board discussed SIRA’s initial responses to the recommendations. SIRA plans to provide formal advice to Government at the end of March.

Dr Abby Bloom, Chair of the SIRA Audit and Risk Committee (ARC), provided an update on the February ARC meeting held earlier that day which discussed the latest Enterprise Risk Report, SIRA’s financial performance so far this year, litigation and cyber security updates plus external and internal audit issues. The Committee was pleased that there are no overdue audit items.

Ms Nancy Milne OAM, Chair of the Compulsory Third Party (CTP) Premium Committee provided an update on the recent CTP Premium Committee meeting, which had also discussed the Statutory Review.

The Board received an update on the status of the McDougall Review of the State Insurance and Care Governance Act 2015 and regular updates on workers compensation and the home building scheme.

Board Members noted an update on the 2017 Compulsory Third Party Green Slip scheme monitoring, with the scheme December 2021 quarterly report to be published on the SIRA website in due course.

The Board discussed SIRA’s return to work action plan and received updates on the programs underway.

The Board received an update on the third round of the Recovery Boost grants which provides grants of up to $50,000 towards mental health projects that encourage early help seeking, support recovery and reduce stigma.  The funded programs include tailored assistance for rural sole traders, yarning circles for First Peoples, support for deaf and hard of hearing workers, and targeted intervention for police officers with stress disorders.

The Board noted the work underway between SIRA and the John Walsh Centre for Rehabilitation Research (JWCRR) to update the guidelines for managing acute whiplash disorders. The current guidelines for managing whiplash were last updated in 2014 and are limited to treating acute whiplash. This update seeks to expand on the existing guidance to include the latest evidence and, for the first time, information on the assessment, prognosis and treatment of chronic whiplash.

The Board thanked management and staff for their strong and sustained efforts during what has been a difficult time for everyone.

Trevor Matthews
Chair, SIRA Board

Trevor Matthews

SIRA Board Chair

The SIRA Board (Board) held its regular monthly meeting on Friday, 27 November 2020 and indeed its last meeting for 2020.  Members joined in person at the new SIRA office, 231 Elizabeth Street, and virtually as New Ways of Working continue to evolve in SIRA.

The Board was delighted to note Prof Abby Bloom and Mr Rod Stowe PSM have been reappointed to the Board and Dr Graeme Innes AM has been reappointed to the SIRA Audit and Risk Committee (ARC).

Prof Abby Bloom, Chair of the ARC provided an update on the November ARC meeting and Ms Nancy Milne OAM, Chair of the Compulsory Third Party (CTP) Premium Committee provided an update on her recent meeting. She commented that the members of the Premium Committee are enthusiastic and processing a large volume of quite complicated material. Later in the meeting the Board considered a report on the Transitional Excess Profit and Loss Assessment for the 2018 Accident Period.

The Board received an update on SIRA input into the McDougall Review of the State Insurance and Care Governance Act 2015. The Board acknowledged SIRA’s comprehensive submission to the review.

Board members received an update on SIRA’s appearance at a hearing of the Legislative Council Select Committee inquiry into the impact of technological and other change on the future of work and workers in New South Wales, at which Ms Carmel Donnelly, Mr Darren Parker and Dr Petrina Casey were witnesses.

They also received an update on SIRA’s involvement in Reviews by the Legislative Council Standing Committee on Law and Justice, noting that the Committee is continuing the 2020 Review of the Workers Compensation Scheme, and has requested additional information from SIRA for the 2020 Review of the CTP insurance scheme.

During the year a SIRA team has been working on a comprehensive Healthcare review. The Board was advised that SIRA is planning to publish a document shortly outlining findings and planned actions for 2021.

The Board was presented with a regular report on the CTP Scheme Performance and two deep dives into aspects of the scheme which is continuing to operate very satisfactorily.

Board members discussed the proposed cost-sharing mechanism for COVID-19 workers compensation claims noting there is a strong public interest case for all insurers and employers in NSW to contribute to the cost of COVID-19 workers compensation claims.  Board members look forward to hearing the feedback from the consultation.

The Board also considered a report dealing with a Recovery at Work Measurement Framework and noted that SIRA plans to test a range of measures outlined in the framework, including through some further targeted consultation. The Board is keen to see not only an improvement in return to work outcomes but also improvement in the monitoring of return to work.

Board members noted the consultation period for the Legal Support Review has been extended to 2 December 2020 due to high stakeholder interest.  Board members are looking forward to hearing the consultation feedback regarding the legal supports available in the CTP insurance scheme.

Towards the end of the meeting, the Board was pleased to be joined by Ms Em Hogan, Department of Customer Service Secretary, who thanked the Board and executive for all their hard work during a very challenging year.

I too would like to thank Carmel Donnelly, SIRA Chief Executive and her team and my fellow Board members for their efforts throughout an exceptional year where I believe despite the adversities SIRA has made significant progress.

I hope you can all take some well-deserved time out over the festive period (even if you cannot go away!) so you can relax and then come back refreshed for the New Year. On behalf of the Board, I wish you and your family all the best for the festive season.

Trevor Matthews

SIRA Board Chair

The SIRA Board held its regular monthly meeting on Tuesday 23 June 2020 via Skype.

The Board was pleased to note SIRA’s progress in responding to the COVID-19 pandemic including adaptation of services and scheme arrangements and the implementation of amendments to the Workers Compensation Act 1987.

As COVID-19 restrictions are easing across NSW and businesses resume their operations, SIRA is providing a free Recovery Advisory Service to help small businesses transition back to work  and manage their workers compensation obligations.

The SIRA Board noted the changes introduced by SIRA to the Workers Compensation Market Practice and Premium Guidelines to minimise the impact of JobKeeper payments on workers compensation premiums and commended management for their ongoing work in this space.

The Board noted the commencement on 26 June of amended workers compensation Standards of Practice including a new Standard on the management of claims during the COVID-19 pandemic. These are designed to support workers through their recovery and return to work through reducing barriers and setting clear expectations regarding insurer decision-making.

The SIRA Board received an update on SIRA’s access to the Australian Health Practitioners Regulation Agency registration database, this allows SIRA to confirm health practitioners to have the appropriate professional qualifications and registrations to deliver treatment and services in the schemes.

We received a comprehensive Compulsory Third Party (CTP) Scheme update, one of the highlights of which was the identification of a $6 reduction in the average all vehicles premium for May 2020 compared to a year ago, ($488 versus $494 as at May 2019). The scheme continues to perform well. Members of the Board were interested in a “Deep Dive” which covered Injury Profiling. In addition, the Board was advised that despite a short-term reduction in traffic volumes at the outset of the pandemic there is not sufficient evidence to warrant alteration of the premium parameters at this stage.

The SIRA Board was updated on a SIRA Customer Experience Survey which will invite 1,500 claimants to focus on their experiences claiming benefits, their treatment and recovery under both workers compensation and CTP insurance schemes.

In the context of the Prime Minister’s statement on the risk of sophisticated cyber-attacks, the Chief Executive updated the Board on risk management arrangements for public sector agencies and noted that a further update on SIRA cyber security risk management would be provided at the next meeting of the SIRA Audit and Risk Committee.

The Board received an update on the second SIRA Digital Town Hall and YamJam for employees and noted that SIRA management has conducted its first Survey using a new tool – including a check-in with how staff are feeling during COVID-19 so that management can take appropriate and swift action in response, and the results and feedback have been positive. The Board commended SIRA management for the efforts to protect employee well-being, engagement and productivity during the pandemic.

Trevor Matthews

SIRA Board Chair

In line with the new way of working SIRA board members attended the March meeting by connecting remotely via Skype. It is taking a while for all of us to adjust to the new operating conditions, but the meeting proceeded satisfactorily. The first item on the agenda was a discussion, led by the CE, about the steps we are taking to deal with the coronavirus (COVID-19) outbreak, particularly:

• looking after the safety and welfare of all staff
• adapting Policy and operations to the new environment to mitigate the impact on injured people, businesses and the health system and
• activating business continuity measures to support SIRA operations and employees for the foreseeable future.

Dr Abby Bloom, Chair of SIRA’s Audit and Risk Committee mentioned a recent interim Audit and Risk Committee meeting held to discuss the problems identified by the Nominal Insurer (managed by icare) with the initial PIAWE calculation. These are to be addressed by a PIAWE Review and Remediation Plan. The Board was updated on feedback provided to icare and progress in the finalisation of that plan.

Board Members were also updated on the progress on the joint SIRA and icare 21-point Action Plan developed in response to the Compliance and Performance Review of the Workers Compensation (WC) Nominal Insurer scheme.

A separate agenda item was an update about icare’s 2020-21 Home Building Compensation Fund premium filing. Members discussed the filing currently under review.

Board Members noted progress updates on SIRA’s Health Care Review program including submissions in response to the Regulatory requirements for health care and work-related hearing loss in the NSW workers compensation public consultations. The major objective of this review is to develop a new outcomes framework containing principles for SIRA’s approach and actions to achieve improved health and experience outcomes for injured people in the WC and Compulsory Third Party (CTP) schemes. A final report is expected to be published in the second half of 2020.

Each year SIRA sponsors a research program, SIRA’s Outcomes and Applied Research (SOAR), which is funded at the rate of $1 per CTP policy and $1 per NSW worker. This provides funds of about $10 million per annum. SIRA commissioned Professor Niki Ellis to review this program last year and at this meeting she presented her nine recommendations for improvement. These were readily accepted by the Board.

Board Members approved the publication of several 1999 and 2017 CTP Scheme Performance Reports including analysis of accident data to 30 June 2018 and to 30 June 2019.

Other matters at the March 2020 Board meeting included:

• Ms Nancy Milne, OAM, Chair of the CTP Premium Committee provided an overview of key premium-related matters raised at its meeting earlier in the month.
• Updates on the uptake of support programs and other initiatives available for workers affected by section 39 of the Workers Compensation Act 1987 who have subsequently been affected by section 59A of the Act.
• A progress report on several matters relating to the CTP scheme.

Board members thanked the executive for stepping up to the recent challenges and encouraged everyone to follow the personal and social conditions necessary to limit the damage caused by the virus.

Trevor Matthews

Chairperson

SIRA Board

At its first meeting for 2020, the SIRA Board thanked and acknowledged the outstanding efforts of firefighters and other emergency service workers and volunteers over an unprecedented bushfire season. The Board noted measures undertaken by SIRA to work with all NSW compensation insurers to understand and discuss their approaches to supporting affected workers with a work-related injury.

Board Members expressed disappointment with the progress on the joint SIRA and icare 21-point Action Plan developed in response to the Compliance and Performance Review of the Workers Compensation Nominal Insurer scheme (managed by icare).The Board also noted recent analysis provided by EY scheme actuaries on the performance of the Nominal Insurer and updates on other regulatory actions taken by SIRA, particularly to improve claims management with the ultimate objective of improving return to work results.

The Board noted updates and continues to monitor the uptake of support programs and other initiatives available for workers affected by section 39 of the Workers Compensation Act 1987 (the Act) who have subsequently been affected by section 59A of the Act.

Board Members received updates on the Compulsory Third Party (CTP) Scheme which is performing in line with expectations. The Board was informed that the average all vehicles premium for December 2019 was $509 compared to $544 twelve months previously. The Board was also interested to see some pioneering analysis of a composite data base formed by linking motor vehicle crash, hospital records and CTP claims data.

The Board was pleased to note that responses have been received from key stakeholders  following the release the of the Measuring Return to Work (RTW) discussion paper as part of SIRA’s public consultation aimed at investigating how the measurement of RTW metrics could be strengthened across the schemes SIRA regulates.

Board Members endorsed in principle a document which describes SIRA’s Regulatory Approach and will soon be published on the SIRA website. It sets out SIRA’s desired outcomes, our goals, the roles of the regulator and the regulatory principles that we will follow to ensure fair, secure and efficient markets, and that injured people get the right treatment and support when they need it.

Other matters at the February 2020 Board meeting included:

• discussing current activities related to SIRA’s organisational realignment as it relates to SIRA’s future strategic direction;
• a presentation of an independent review of SIRA’s organisational health by a representative from Bendelta; and
• continuing discussions on the current issues related to the building and construction industry.

Trevor Matthews

Chairperson

SIRA Board

At its November meeting, the Board discussed the progress of the Compliance and Performance Review of the Workers Compensation Nominal Insurer Scheme (managed by icare). The Independent Reviewer’s report and supporting EY analysis are being finalised, and are expected to be published on the SIRA website by the end of the year. The Board was also briefed on a report on the valuation of the insurance liabilities of the Nominal Insurer as at 30 June 2019.

The Board was pleased to approve the reappointment of members of the Board’s Compulsory Third Party (CTP) Premium Sub-Committee (the Committee) for a further term. The Board acknowledged the Committee’s valuable contributions in providing advice to the Board during their first term on a number of premium related matters including independent reviews of CTP scheme premium parameters, the review of the NSW CTP Risk Equalisation Mechanism and the Transitional Excess Profit and Loss Mechanism.

Dr Abby Bloom, Chair of the SIRA Audit and Risk Committee briefed the Board on the November 2019 Committee meeting. This included the SIRA review of health care costs and arrangements in the workers compensation and CTP schemes and a discussion on risks.

The Board approved revised Guidelines for workplace return to work programs, which outline an employer’s injury management and return to work obligations. The revised Guidelines will be published on the SIRA website shortly.

Other matters at the November 2019 Board meeting included:

• the Board discussed the recent release of Customer Conduct Principles, which are designed to strengthen customer service accountability for all insurers in SIRA regulated schemes
• the Board noted the recent publication of Safe Work Australia’s National Return to Work (RTW) Strategy 2020-2030, and
• the Board discussed the current issues prevalent in the building and construction sector, and the potential consequences for the Home Building Compensation Fund.

Trevor Matthews
Chairperson
SIRA Board

Prior to its October Board Meeting, the SIRA Board conducted its annual Strategic Planning Session. Members welcomed discussion on the forward view for 2020, with a focus on SIRA’s role as a regulator including design and reform, influencing and enabling and supervision and enforcement. The Board will continue to work with the SIRA executive to finalise the strategy, which will be published on the SIRA website.

The Board received a briefing on the Compliance and Performance Review of the Workers Compensation Nominal Insurer Scheme (managed by icare) and the report being prepared by the Independent Reviewer, Ms Janet Dore, with the support of independent actuaries, EY. The Board noted that SIRA has now published all submissions received during the public consultation phase of the Review (which have approval to be published), and these are available on the SIRA website.

The Board commended the success of the inaugural SIRA Symposium held on 18 October 2019. The SIRA Symposium provides decision-makers, stakeholders and thought leaders across the personal injury sector with a forum to collaborate on key challenges and opportunities to improve outcomes for customers in the sector.

The Board received a progress report on the first phase of the program of work underway to understand and respond to rising health care costs and utilisation in the workers compensation and CTP schemes. The Board discussed the findings arising from a health sector benchmark analysis and a comparison of trends in health expenditure between types of workers compensation insurers.

The Board discussed support for workers affected by section 39 of the Workers Compensation Act 1987 (the Act) who have subsequently been affected by section 59A of the Act, and noted a support program for workers is in the final stages of development and implementation. SIRA continues to engage with stakeholders on a regular basis to review and discuss initiatives available to support workers.

Other matters at the October 2019 Board meeting included:

• a progress report on several matters relating to the Compulsory Third Party (CTP) Scheme
• an update on the Home Building Compensation Scheme
• a quarterly report on key SIRA People and Culture statistics.

Trevor Matthews

Chairperson,  SIRA Board

At its September meeting, the Board received an update from the SIRA Chief Executive regarding appearances at hearings of:

• the NSW Parliament Public Accountability Committee Inquiry into the regulation of building standards, building quality and building disputes
• the 2019/2020 Budget Estimates Inquiry
• the Legislative Council Standing Committee on Law and Justice Inquiry into the 2019 review of the Dust Diseases scheme.

The Board discussed the progress of the Compliance and Performance Review of the Workers Compensation Nominal Insurer Scheme (managed by icare) and were briefed on the key findings of the analysis undertaken by independent actuaries, EY, engaged to support Independent Reviewer, Ms Janet Dore. The Board noted that SIRA has commenced publishing submissions received during the public consultation phase of the review, which are available on the SIRA website.

The Board reviewed a revised set of assumptions for premium setting in the NSW Compulsory Third Party (CTP) system and approved the Transitional Excess Profit and Loss Mechanism (TEPL) Guidelines, which will be published shortly. The guidelines will be accompanied by a fact sheet outlining the functionality of TEPL as a mechanism to reduce excess profits or excess losses in the NSW Compulsory Third Party (CTP) market. The Board was also pleased to note a review of the scheme’s risk equalisation mechanism which is functioning well.

Ms Nancy Milne OAM, currently Deputy Chair of the SIRA Board, and the delegate Chair of the SIRA Audit and Risk Committee (ARC) for July, provided an update on the July 2019 ARC meeting. Board members noted the extensive work completed to facilitate SIRA’s compliance with end of financial year requirements.

The Board also approved the allocation of the 2019-2020 financial year budget across SIRA’s operational funds.

The Board noted that public consultation has commenced on options relating to regulatory requirements to manage health care costs and improve outcomes within the NSW CTP and workers compensation schemes. The consultation paper is now available on the SIRA website and was endorsed for release by the Board out of session. Members of the public are invited to make submissions before 1 November 2019.

Other matters at the September 2019 Board meeting included:

• discussion about the strategic considerations to be included at the upcoming Board 2019/20 planning day, with the Board also approving the 2019/20 SIRA delivery plan
• a progress report on several matters relating to the CTP Scheme.

Trevor Matthews

Chairperson,  SIRA Board

At its August meeting, Ms Janet Dore, Independent Reviewer for the Compliance and Performance Review of the Workers Compensation Nominal Insurer and independent actuaries Ernst & Young (EY) briefed the Board on their preliminary findings arising from the Review. The Board discussed the extensive stakeholder engagement undertaken by the Independent Reviewer, including consideration of the 163 submissions received during public consultation and numerous meetings with stakeholders across the State. The Board was also briefed on matters relating to the financial performance of the Nominal Insurer and its claims management practices. A final report is expected to be provided to the Board in October and publicly released by the end of 2019.

Dr Graeme Innes, AM Chair of the SIRA Dispute Resolution Advisory Committee, provided a report on the August 2019 Committee meeting. Dr Innes advised Members that the Committee discussed insights emerging from Dispute Resolution Data relating to 1999 and 2017 Compulsory Third Party (CTP) Schemes and considered the project scope for the dispute resolution environmental scan to be commissioned by SIRA.

The Board approved amended Workers Compensation Guidelines and Standards of Practice which support the implementation of Pre-Injury Average Weekly Earnings (PIAWE) legislative amendments passed by Parliament late last year. Members noted that an amended Regulation has also been prepared, with the commencement date for the revised Guidelines, Standards of Practice and Regulation to be confirmed in due course. The amendments are designed to simplify and improve the framework for PIAWE determinations.

Other matters at the August 2019 Board meeting included:

• The Board discussed the recent findings and recommendations arising from the Australian Prudential Regulation Authority Capability Review report dated June 2019, including relevant considerations and focus areas for SIRA. Key themes discussed included supervisory and enforcement capabilities, governance, culture and accountability risk and transparency and communication.
• The Board noted a progress report on several matters relating to the CTP Scheme.
• The Board were pleased to note the recent launch of SIRA’s claims management guide, a new centralised online resource for workers compensation claims handling in NSW.

Trevor Matthews

Chairperson, SIRA Board

At its July meeting the Board was provided with an update on the July 2019 SIRA Audit and Risk Committee meeting by Chair, Dr Abby Bloom. This included a briefing on the End-of-Financial Year reporting for 2018/19, with Members acknowledging the extensive work completed to facilitate SIRA’s compliance with reporting requirements.

The Board approved the publication of the Home Building Compensation Scheme Report – June 2018 and associated data tables. The Board noted that the new format of the Report reflects data reporting enhancements and provides information on the financial progress of the scheme. Members also discussed the current issues impacting the home building and construction industry. Because of improvements in data collection it is expected that SIRA will be able to produce future reports in a more timely manner.

The Board discussed the progress of the Compliance and Performance Review of the Workers Compensation Nominal Insurer (managed by icare), noting that the public consultation phase has now been completed and that the review team are in the process of considering submissions. The Board also approved SIRA’s Review of the December 2018 Nominal Insurer Valuation Report, which will be published on the SIRA website in due course. The Board noted that SIRA’s review of the Nominal Insurer Valuation Report has been undertaken in consultation with actuaries, Ernst & Young.

The Board approved an inaugural Risk Equalisation Mechanism (REM) Report following consideration of the Report by the CTP Premium Committee this month. The Report reflects the outcomes of SIRA’s first review of the REM which was introduced in 2017. Board Members were pleased to note that the REM is achieving its intended outcomes, and that the CTP Insurance market in NSW has become more competitive since the introduction of the REM. The Report will be published shortly on the SIRA website.

The Board discussed key metrics regarding the monitoring of the performance of the CTP Scheme and endorsed the finalisation of CTP insurer claims experience comparison metrics which highlight individual CTP performance measures and how these measures may impact customer experience.

Other matters at the July 2019 Board meeting included:

• Board Members were provided an update on the work underway relevant to  the Law and Justice Standing Committee’s 2019 Review of the Dust Diseases Scheme.
• The Board discussed notable changes to the prudential and regulatory environment following the recent release of the APRA Capability Review and the release six months ago of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry Final Report.
• Board Members were provided a quarterly report on key SIRA People and Culture statistics.

Trevor Matthews
Chairperson 
SIRA Board

The Board received an update on the Audit Office’s observations of the early close procedures performed by SIRA ahead of the finalisation of year-end financial statements in line with requirements for NSW public sector agencies and SIRA’s responsibilities under legislation and was pleased to note there were no significant matters raised.

The Board discussed the progress of the Compliance and Performance Review of the Workers Compensation Nominal Insurer managed by icare. This included discussion about the themes emerging from the submissions made to date as part of public consultation. The Board noted that the public consultation period has been extended to 5 July 2019. The Board also received a verbal report about the Nominal Insurer Liability Valuation as at 31 December 2018.

The Board considered the draft report on the NSW Young Driver’s Telematics Trial, noting that a peer review is being undertaken prior to finalisation of the report. The Trial was led by SIRA in partnership with the NSW Centre for Road Safety and investigated whether telematics use can positively influence young driver behaviour. The Board discussed the next phase of the project which will focus on evaluating the feasibility of telematics solutions and other innovations in improving road safety.

The Board noted a progress report on several other matters relating to the Compulsory Third Party (CTP) Scheme, including an update on the Minor Injury Review program where work is underway on the file review of the first 1000 claims made under the 2017 CTP scheme.

The Board discussed the preliminary findings and recommendations from a review of healthcare arrangements in SIRA-regulated personal injury schemes. The review focused on areas such as trends in medical costs, cross-jurisdictional comparisons of similar schemes and markets, and the risks associated with high-level demographic changes and other healthcare related trends in NSW.

Other matters at the June 2019 Board meeting included:

• Board Members discussed the support for workers who were affected by section 39 of the Workers Compensation Act 1987 who will subsequently be affected by section 59A of the legislation (limit on payment of compensation for medical expenses).
• The Board noted an update on current matters related to the Home Building Compensation Scheme.
• Board Members were provided an update on operational and administrative changes arising from the transition to the new Customer Service Cluster.

Trevor Matthews

Chairperson, SIRA Board

At the May meeting of the SIRA Board, Members were provided an update on the Compliance and Performance Review of the NSW Workers Compensation Nominal Insurer Scheme (managed by Insurance and Care NSW). Led by independent reviewer Janet Dore and supported by actuaries Ernst & Young and authorised officers of SIRA, the review has now reached the public consultation phase with the public invited to make submissions by 14 June 2019. Details of the review and the Terms of Reference are published on the SIRA website.

The Hon. Greg Keating, Member of the SIRA Dispute Resolution Advisory Committee provided an update to Board Members on the recent Committee meeting. This included an overview of a discussion with the Hon. Judge Gerard Phillips, President of the Workers Compensation Commission.

The Board approved a draft set of amended Workers Compensation Guidelines and Standards of Practice for consultation with stakeholders. The amended Guidelines and Standards support the implementation of Pre-Injury Average Weekly Earnings (PIAWE) legislative amendments. These amendments were passed by Parliament in October 2018 to simplify and improve PIAWE determinations. Members noted that a draft Regulation is also being prepared.

The Board approved draft amended Return to Work (RTW) Guidelines for public consultation. The RTW Guidelines outline employers’ injury management and return to work obligations and have been updated to reflect legislative changes which commenced in January 2019.

Ms Nancy Milne OAM, Chair of the SIRA Compulsory Third Party (CTP) Premium Committee, provided an update on the May 2019 Committee meeting and overview of the Committee’s advice to the SIRA Board. This included advice relating to the CTP Risk Equalisation Mechanism Implementation Review which is currently underway.

Dr Abby Bloom, Chair of the SIRA Audit and Risk Committee provided an update on the May 2019 Committee meeting. The Board was provided with an overview of a recent review of SIRA cyber security measures and updates to the SIRA risk register.

The Board noted updates on the progress of several other matters relating to the CTP Scheme, including a draft analysis of CTP insurer customer service metrics which is being prepared for publication in due course.

Other items discussed at the May 2019 Board meeting included:

• The Board noted the update on the work being undertaken in response to the Legislative Council Standing Committee for Law and Justice recommendations (tabled in February 2019)
• The Board was provided an update on the planning for the Minor Injury review. The review will be undertaken as part of a commitment by Hon Victor Dominello MP to review the definition of minor injury under the Motor Accident Injuries Act 2017.

Trevor Matthews
Chairperson, SIRA Board

At the April Board Meeting, Members were provided with an update on NSW Government administrative arrangements, and discussed opportunities to improve customer experience and outcomes by working with others in the new Customer Service Cluster in the portfolio of the Minister for Customer Service, the Hon. Minister Dominello MP.

Dr Bloom, Chair of the SIRA Audit and Risk Committee, provided an update on a Special Committee Meeting to consider SIRA’s Early Close Financial Statements. The Committee’s engagement in Early Close procedures will enable SIRA to develop timely and high-quality year-end financial statements in line with requirements for NSW public sector agencies and its responsibilities under legislation.

Board Members were provided an update on the status of NSW Compulsory Third Party (CTP) Green Slip refunds arrangements, with refunds available to eligible NSW policy-holders since early 2018. As the refunds program will cease on 30 June 2019, the Board noted SIRA’s intention to return unclaimed refunds to NSW policyholders.

The Board noted a progress update on several other matters relating to the Compulsory Third Party (CTP) Scheme, including Scheme performance, financial matters relating to the Scheme, the draft Transitional Excess Profit and Loss Guidelines, and the Young Drivers Telematics Trial. Analysis of data and research continues, with reports and matters for the Board’s decision to be considered over the upcoming months.

Other items discussed at the April 2019 Board meeting included:

• The Board noted that as part of its responsibilities under legislation, SIRA is considering the valuation of insurance liabilities of the NSW (Workers Compensation) Nominal Insurer as at 31 December 2018, and the 2019/20 Nominal Insurer Premium filing.
• Board Members noted SIRA’s continuing development of a strategy to support workers who were affected by section 39 of the Workers Compensation Act 1987, and who will subsequently be affected by section 59A of the legislation (limiting payment of compensation for medical expenses).
• The Board noted an update on current matters in the Home Building Compensation Scheme.
• Members were updated on SIRA’s strategic planning for 2019/20.
• Board Members noted a quarterly update on key SIRA People and Culture statistics.
• The Board briefly considered SIRA’s ongoing focus on the application of the findings from the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry.

Trevor Matthews
Chairperson, SIRA Board

The SIRA Board had a valuable discussion with the new President of the Workers Compensation Commission, the Hon. Judge Gerard Phillips, who succeeded our SIRA Board member, the Hon. Mr Greg Keating. The Commission does important work resolving disputes between injured workers and their employers and this session provided the Board with some useful insights on the Commission’s activities and the issues facing the system at present.

Dr Graeme Innes AM, Chair of the SIRA Dispute Resolution Advisory Committee, provided a report on the March 2019 Committee Meeting. He advised that the Committee’s focus is on obtaining system-wide data to provide insights about the accessibility, timeliness and effectiveness of dispute resolution in the workers compensation system and Compulsory Third Party (CTP) insurance scheme, and opportunities to prevent disputes where possible. The Committee also discussed the recommendations outlined in the Legislative Council Standing Committee on Law and Justice Committee Report on the 2018 Review of the Workers Compensation Scheme. The Board noted that the Committee will invite a number of key stakeholders to future meetings of the Committee over 2019. Information about the Committee Members is available on the SIRA website.

The SIRA Board engaged in further discussion on the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry including relevant considerations and focus areas for SIRA. Key themes under discussion included inter-regulator collaboration, insurer transparency, organisational culture and governance, and appropriate regulatory approach and arrangements for enforcement teams.

The Board was pleased to endorse SIRA’s release of a consultation paper on a proposed consistent set of customer service conduct principles across the insurance schemes it regulates. The community expects that their interactions with mandatory personal injury schemes are efficient, honest and fair. Businesses require affordable and efficient policies providing adequate protection, while the beneficiaries of these policies need to be properly supported. As an insurance conduct regulator, the Board supports SIRA’s proactive regulation of supervised insurers in accordance with the legislation, in line with community expectations and in the best interests of customers.

Ms Nancy Milne OAM, Chair of the SIRA CTP Premium Committee, provided an update on the March 2019 Committee Meeting and overview of the Committee’s advice to the SIRA Board on several CTP premium-related matters. These included the CTP Risk Equalisation Mechanism Post-Implementation Review expected to occur in April/May 2019, and ongoing engagement with the taxi industry (Point to Point transport) on the planned introduction of application-based booking and metering systems in May 2019. Further information about the Committee Members is available on the SIRA website.

The Board noted the progress on development of the CTP Transitional Excess Profit and Loss (TEPL) mechanism Guidelines, which have undergone extensive stakeholder consultation. The Guidelines are due to be finalised following the making of a transitional regulation amending Schedule 4 of the Motor Accident Injuries Act 2017 (the Act). SIRA has addressed feedback on the draft Guidelines from insurers, actuaries and other stakeholders, including the Australian Prudential Regulation Authority. Final technical adjustments are being made, with further actuarial and legal advice to be applied. Members look forward to considering the final version of the Guidelines, which will be implemented to ensure that the underwriting profits achieved by insurers during the transition period are neither excessive nor inadequate.

Other items discussed at the March 2019 Board meeting included:

• Board Members noted SIRA’s continuing development of a strategy to support workers who were affected by section 39 of the Workers Compensation Act 1987, and will subsequently be affected by section 59A of the legislation (limit on payment of compensation for medical expenses).
• The Board was provided a progress update on the program of work to support the implementation of the dispute resolution amendments featured in the Workers Compensation Legislation Amendment Bill 2018.
• Board Members noted an update on current matters in the Home Building Compensation Scheme.
• Members were provided an update on SIRA’s strategic planning for 2019/20.

Trevor Matthews
Chairperson, SIRA Board

Dr Graeme Innes AM, Member of the SIRA Board and Chair of the recently established SIRA Dispute Resolution Advisory Committee, provided a report to the Board from the inaugural meeting of the Committee in early February 2019. The purpose of the Committee is to advise the SIRA Board on matters relating to dispute resolution services for injured people and insurers, across a range of personal injury compensation schemes.

Along with Dr Innes, I would like to take this opportunity to introduce the appointed Members of the Committee, namely,

• The Hon. Mr Greg Keating, recently appointed Member of the SIRA Board;
• Mr Andrew Stone SC; and
• Professor Tania Sourdin.

Each Committee Member brings unique knowledge and experience to the Committee, and we look forward to receiving their advice. Further information about the Members is available via the SIRA website.

Dr Abby Bloom, recently appointed Chair of the SIRA Audit and Risk Committee (ARC), provided an update on the February 2019 ARC Meeting. Board Members noted the overview of the Annual Engagement Plan for the audit of the SIRA financial statements for the year ending June 2019 by the NSW Audit Office.

The Board thanked Ms Nancy Milne OAM, Deputy Chair of the SIRA Board and outgoing Chair of the SIRA ARC, for her leadership of the Committee since its establishment in 2016. Ms Milne has been re-appointed to the SIRA ARC as an Independent Member for a further term.

The SIRA Board received a highly informative presentation from representatives of TCorp (NSW Treasury Corporation), the financial markets partner of the NSW Public Sector, on the investment governance and fund performance of the Insurers’ Guarantee Fund (IGF). Discussions on the IGF are held at key intervals to assist Board Members to discharge their responsibilities for the IGF, a statutory fund established under Division 227 of the Workers Compensation Act 1987. The IGF funds the claim payments of the remaining liabilities of insolvent insurers, and SIRA is responsible for administering the IGF.

Board Members noted SIRA’s continuing development of a strategy to support workers who were affected by section 39 of the Workers Compensation Act 1987, and will subsequently be affected by section 59A of the legislation (limit on payment of compensation for medical expenses). SIRA is working closely with insurers and relevant stakeholders to identify key initiatives to assist these workers as they transition off medical benefits.

Members were pleased to note that SIRA convened the first in a series of monthly community of practice session with insurers in February 2019. The aim of this Community of Practice is to share experiences, information and co-develop resources to provide support and information for workers affected by section 59A and treatment providers within their respective portfolios.

The Board noted a progress update on the program of work to support the implementation of the dispute resolution amendments featured in the Workers Compensation Legislation Amendment Bill 2018. It is expected that the final tranches of the program will be completed by June 2019.

Other items discussed at the February 2019 Board meeting included:

• Board Members Ms Nancy Milne and Dr Abby Bloom provided an update on their attendance at the recent (February 2019) National Heads of Motor Accident Insurance Schemes (HMAIS) meeting with the National Transport Commission (NTC) to discuss the introduction of Autonomous Vehicles and how they will interact with CTP Insurance schemes. Discussion ensued on how current motor accidents legislation would respond, where the onus of proof should lie in relation to liability and what would need to be done to ensure a right recovery against manufacturers. The NTC will incorporate into their recommendations HMAIS feedback on what is critical to consider for motor accidents schemes.
• Board Members noted an update on 2017 Compulsory Third Party Green Slip scheme monitoring, with the scheme December 2018 quarter insights report to be published on the SIRA website in due course.
• The Board discussed progress on SIRA’s strategic planning for 2019/20.
• Members were provided an update on the management of Alternative Indemnity Providers under the Home Building Compensation Scheme.
• As a standing item, the Board discussed the proceedings of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry and the recently published Report.

Trevor Matthews
Chairperson, SIRA Board

At the December meeting, the SIRA Board welcomed its most recent appointee, the Hon. Judge Gregory Keating, who officially joined the Board following his recent retirement as President of the Workers Compensation Commission.

A principal objective of SIRA in exercising its functions is to provide for the effective supervision of claims handling under NSW workers compensation legislation. Board Members discussed the comprehensive SIRA review of the current claims handling framework for workers compensation in NSW, and acknowledged the contributions of stakeholders in developing Standards of Practice (Standards) for insurer claims management and conduct.

The Board approved the Standards for publication this month, with the expectation that insurers will adhere to the principles set out in the Standards from 1 January 2019. SIRA will work closely with insurers during the coming months to implement the new Standards.

Members noted that the related Workers Compensation Guidelines are being amended to incorporate feedback received during public consultation. The Board expects to consider the revised Guidelines out of session, for publication by the end of 2018 and commencement concurrently with the Workers Compensation Dispute Resolution reforms on 1 January 2019.

The Board was delighted to consider the significant customer-centred achievements which mark the first anniversary of the 2017 Compulsory Third Party (CTP) Scheme. Members noted key facts about the impact of CTP reforms.

Members noted a summary of findings in an interim report on the Young Drivers Telematics Trial, which commenced on 5 July 2018. The Board was encouraged to note early positive indicators that young drivers modify their behaviour when given feedback about their acceleration, braking and cornering, however further data collection is required before we can draw firm conclusions that may affect road safety policy and/or CTP insurance.

Board Members noted that SIRA has prepared a draft submission on behalf of the NSW Government, in response to the National Transport Commission’s Motor Accidents Injury Insurance and Automated Vehicles – Discussion Paper which was released in October 2018. Submissions were due on 12 December 2018, with the discussion paper available on the National Transport Commission website.

Members noted the culmination of work on a SIRA-wide complaint handling policy, and endorsed the policy for publication.

As a regulator, SIRA’s purpose is to hold insurers and service providers accountable so that insurance and support systems are easy to deal with, deliver protection, recovery and restoration entitlements, and good outcomes at an affordable price and in a sustainable way. The Board discussed a number of risks and regulatory action in relation to insurer service delivery.

The Board was provided an overview update on key people and culture strategic priorities, as identified in SIRA’s 2018 Strategic Plan. Members were encouraged to hear about the progress made on SIRA’s People Matter Employee Survey Action Plan, including a recently launched pilot of Teamgage to capture frequent feedback from staff.

The Board continued its consideration of SIRA’s strategic planning for 2019/20 and beyond, and endorsed the SIRA strategic planning framework.

Other items considered at the December 2018 Board meeting included:

• Board Members noted the September 2018 CTP Green Slip Scheme Quarterly Insights Report, which was recently published on the SIRA website.
• The Board endorsed further work in 2019 to review the Workers Compensation Operational Fund contribution framework, which will include assessing whether deemed premium income is an appropriate mechanism for determining contributions for self-insurers.
• The Board noted a progress update on Regulations and Guidelines to support the commencement of the dispute resolution amendments featured in the Workers Compensation Legislation Amendment Bill 2018.
• The Board was provided an update on Home Building Compensation Scheme reform.
• As a standing item, the Board discussed the Financial Services Royal Commission proceedings and potential actions SIRA should take to enforce compliance by insurers in the mandatory insurance schemes which SIRA regulates.

On behalf of the Board I would like to thank everyone associated with SIRA for your efforts during a busy and successful year and wish you all the best for the holiday season.

Trevor Matthews
Chairperson, SIRA Board

The SIRA Board held its November meeting in SIRA’s Oxford Street office. This provided the opportunity for Board Members to meet with SIRA people after the meeting and participate in another ‘Conversation with the SIRA Board’ panel session. Staff quizzed the members on various aspects of their roles and gained insights on their personal experiences and vision for SIRA. I and my fellow Board Members enjoyed the opportunity and trust that those present in person or via the live webcast to people working at SIRA’s McKell Building and Gosford offices did also. I look forward to more sessions like this in 2019.

The SIRA Board was very pleased to welcome its latest appointee, Mr Rod Stowe PSM for his first Board meeting and we look forward to working with the Hon. Judge Greg Keating at the upcoming December meeting, once he formally joins the Board on his retirement as President of the Workers Compensation Commission. This follows the recent announcement by the Minister for Finance, Services and Property, Victor Dominello MP regarding the two new appointments and reappointments of existing Members.

At the November meeting, Ms Nancy Milne, OAM, Chair of the SIRA Compulsory Third Party (CTP) Premium Committee of the Board, provided an update on the late-October and November CTP Premium Committee meetings and an overview of the Committee’s advice on a number of items. Members discussed and noted the peer-reviewed report provided by the Independent Actuaries Ernst & Young, on their premium parameter review and the peer review report by Independent Actuaries, Taylor Fry.

The Board approved revisions to Part One of the Motor Accident Guidelines (MAGs) which under the legislation, can only be amended with the approval of the SIRA Board. Schedule 1E in Part One of the MAGs sets out premium parameters guidance for insurer premiums, and based on the Independent Actuarial advice, the Board approved a revision to the premium parameters, to be effective from 15 January 2019.

Board Members noted the out of session approval by the Board of a reduction in the SIRA Fund Levy to all vehicles for a 12-month period, of up to $10. The Board also approved the distribution of a reduction of up to $3 in the Life Time Care and Support (LTCS) General Fund Levy to apply to policies effective from 15 January, noting advice that the icare Board approved a reduction in the funding required for the LTCS General Fund Levy. These approved changes to the levies will also take effect from 15 January 2019.

All of the above changes will be incorporated into the revised Schedule 1E of the Motor Accident Guidelines, bringing the central point of the target premium range down from $528 to $499 from 15 January 2019.

The Board endorsed the consultation draft Medical Dispute Assessment Guidelines 2018 with final approval to be sought by the SIRA Chief Executive following targeted consultation. Members also endorsed a recommendation to revoke the WorkCover Interim Payment Direction Guidelines to be formally revoked by the SIRA Chief Executive by January 2019.

Following discussions at the October meeting, the Board approved the proposed membership of the Dispute Resolution Advisory Committee of the SIRA Board.

Other items considered at the November 2018 Board meeting included:

• The Board approved SIRA’s consultation draft icare supervision strategy and noted the proposed memorandum of understanding between SIRA and NSW Treasury in relation to oversight of the insurance and compensation schemes administered by icare.
• The Board noted a ‘health check report’ on the medical costs relating to workers compensation claims through the nominal insurer.
• The Board was provided an update on Home Building Compensation scheme reform.
• The Board was provided an update on the development and implementation of Regulations and Guidelines to support the commencement of the dispute resolution amendments featured in the Workers Compensation Legislation Amendment Bill 2018 which was legislated on 17 October 2018.
• The Board approved the consultation draft SIRA Transitional Excess Profit and Loss (TEPL) Mechanism Guidelines to be released shortly for consultation.
• Board Members noted an update on the implementation of section 39 and section 59A of the Workers Compensation Act 1987. Members had the opportunity to consider the progress to date on developing a strategy for workers transitioning off medical benefits under Section 59A.
• The Board was provided an overall schedule of key governance activities for 2019.
• As a current standing item, the Board discussed the Financial Services Royal Commission proceedings and any potential actions SIRA should take to enforce compliance by insurers in the mandatory insurance schemes which SIRA regulates.

Trevor Matthews
Chairperson, SIRA Board

Prior to its October Board Meeting, the SIRA Board conducted its annual Strategic Planning Session. Members welcomed discussion on the forward view for Financial Year 2019, and the proposed approach to developing SIRA’s 2019 Financial Year Strategy.

The SIRA Board Members noted that the strategy should (1) focus on improving outcomes for SIRA’s customers, and (2) comprehensively address planned activity across several domains (legal, economic, scientific, human, and technological) to achieve SIRA’s overall goals. The Board will build on this initial strategy development discussion at its meetings over the following few months.

At the October Board Meeting, the Board was very pleased to note that the Workers Compensation Legislation Amendment Bill 2018 had passed Parliament on 17 October 2018. SIRA will now begin consultation with stakeholders which will assist in the development and implementation of Regulations and Guidelines to support commencement of the dispute resolution amendments before the end of this year.

Board Members noted an update on SIRA’s program of work to review and streamline the existing Workers Compensation Guidelines, and approved draft Workers Compensation Guidelines and related material for public consultation. With development occurring in tandem, Members also noted the status of the Claims Administration Manual (CAM) Project. Following public consultation, it is expected that SIRA will prepare final versions of both the CAM Standards of Practice and amended Guidelines for review and approval by the Board in December 2018.

Ms Nancy Milne, OAM, currently Deputy Chair of the SIRA Board, and Chair of the SIRA Audit and Risk Committee and Compulsory Third Party (CTP) Premium Committee of the Board, provided an update on the September and mid-October 2018 meetings of the CTP Premium Committee. Board Members noted the Committee’s discussion on the CTP Premium Parameter Review currently being conducted by the CTP Scheme Actuaries and the peer reviewer Actuaries; the CTP Scheme Actuary’s report on 2017 Scheme monitoring as at August 2018, and the CTP Scheme whole-of-scheme risks and mitigations report.

The Board was pleased to approve the Interim 2017 CTP Scheme Performance Report, 1 December 2017 to 30 June 2018 for publication.

Board Members approved an issues paper on the Point to Point industry for consultation. Arising from targeted consultation at a Horizon Scanning Workshop for the Point to Point industry on 18 September 2018, the issues paper is expected to be released in November 2018, and forms part of SIRA’s strategy to develop CTP arrangements for the Point to Point industry beyond current arrangements which expire on 1 December 2020.

The Board noted a progress update on the development of Transitional Excess Profit and Loss Mechanism Guidelines. Once the current set of draft Guidelines is consolidated, the Guidelines will be re-circulated to CTP insurers for feedback.

The SIRA Board noted a Financial Year 2017/18 update on the CTP Risk Equalisation Mechanism (REM) from the REM Clearing House, and that CTP insurers have been advised of their individual data analyses. Members also noted SIRA’s intention to perform a review of the REM in early 2019 after it has been in place for 12 months, and in consideration of feedback received during hearings of the Legislative Council Law and Justice Committee 2018 Review of the CTP Scheme.

Board Members noted progress on the early stage establishment of a Dispute Resolution Advisory Committee of the SIRA Board.

Other items considered at the October 2018 Board meeting included:

• As a standing item at its meetings for the foreseeable future, the Board considered the Financial Services Royal Commission proceedings and action SIRA should take to enforce compliance by insurers in the mandatory insurance schemes which SIRA stewards.
• The Board was provided an update on Home Building Compensation scheme reform.
• Board Members noted an update on the implementation of section 39 and section 59A (limit on payment of compensation for medical expenses) of the Workers Compensation Act 1987. Members had the opportunity to consider the progress to date on developing a strategy for workers transitioning off medical benefits under Section 59A.
• The Board was provided a quarterly update on key SIRA People and Culture statistics.

Trevor Matthews
Chairperson, SIRA Board

At its September meeting, the SIRA Board approved a new section (Part 8) of the Motor Accident Guidelines relating to taxis and hire vehicles, which introduces usage-based premiums based on distance travelled. These premiums for Point to Point vehicles, an industry that has undergone rapid change, are designed to reflect the risks more effectively. The new section is supplementary to Part 1 of the Motor Accident Guidelines (Premium determination). Members also approved consequential amendments to Part 1 (Premium Determination) of the Motor Accident Guidelines.

The Board devoted time to considering the Financial Services Royal Commission proceedings and action SIRA should take to enforce compliance by insurers in the mandatory insurance schemes which SIRA stewards. Members acknowledged the significance of witness testimony at the proceedings and agreed that the Board will consider the outcomes and their applicability for SIRA’s regulatory approach.

Board Members noted SIRA has commenced an evidence-based pilot compliance exercise in collaboration with the Australian Taxation Office. The intention of the pilot is to validate methods for identifying employers who have not taken out workers compensation insurance and evaluate possible compliance and enforcement interventions to address non-compliance by employers.

Members were pleased to note progress on the Young Drivers Telematics Trial, which commenced in July 2018. The project has advanced significantly, and the SIRA project team is working with the NSW Centre for Road Safety and the expert advisory group to finalise the research framework.

The Board noted an update on the Workers Compensation Claims Administration Manual (CAM) and Guidelines Review project. SIRA has commenced focussed consultation on the CAM Standards of Practice which outline mandatory requirements for workers compensation insurers. SIRA expects to conduct broad external consultation on the Guidelines during October 2018.

Other items considered at the September 2018 Board meeting included:

• Members were provided an update on the progress of the NSW Government commitment to reform workers compensation dispute resolution arrangements.
• Board Members noted an update on the implementation of section 39 and section 59A (limit on payment of compensation for medical expenses) of the Workers Compensation Act 1987.
• The Board was provided an update on SIRA’s planned approach in response to results of the 2018 NSW People Matter Employee Survey (PMES), which was open to all employees across the NSW Government sector from Friday 1 June 2018 to Monday 2 July 2018. Members acknowledged an outstanding response rate of 95 percent of SIRA employees to the survey, and noted a SIRA-wide PMES Action Plan is being developed in consultation with SIRA employees.

Trevor Matthews
Chairperson, SIRA Board

Senior officials of the New South Wales (NSW) Treasury Commercial Group met with the SIRA Board at the August meeting as part of SIRA’s engagement with a range of stakeholders in its supervision of insurers across the mandatory insurance schemes which SIRA stewards. Board Members were encouraged to note areas of collaboration between Treasury and SIRA, and further opportunities for the agencies to work together.

The Board noted an update on the Workers Compensation Claims Administration Manual (CAM) and Guidelines Review project and endorsed a draft set of CAM Standards of Practice for consultation with stakeholders. Stakeholders will be invited to provide feedback on the draft Standards from late August 2018 as part of SIRA’s ongoing engagement strategy on the CAM, and streamlining of the existing Workers Compensation Guidelines to simplify these for insurers and other stakeholders.

Section 9.17 of the Motor Accident Injuries Act 2017 and section 172 of the Motor Accident Compensation Act 1999 require SIRA to inform each licenced insurer of their Compulsory Third Party (CTP) premium market share on a quarterly basis. Board Members noted advice on current trends in CTP premium market share and premium movements, and that detailed premium reports had been circulated to insurers, actuaries and the Insurance Council of Australia.

The Board was advised that SIRA senior management representatives would appear before the NSW Parliamentary Legislative Standing Committee on Law and Justice later on the day of the Board Meeting. The Committee has supervisory oversight for the operation of the NSW Compulsory Third Party insurance scheme, and is conducting its 2018 review of the scheme.

The Board received a progress update on the Mid-implementation Review of the SIRA Dispute Resolution Services Operating Model, including discussing models in place locally and in other Australian jurisdictions. Members acknowledged the potential value of an advisory body to the Board on dispute resolution services, and endorsed the establishment of a sub-committee of the Board to steer the review of the dispute resolution component of the Motor Accidents (CTP) Guidelines, and related matters. The Board also endorsed that the Committee be chaired by Dr Graeme Innes, independent Member on the SIRA Board.

Other items considered at the August 2018 Board meeting included:

• The Board noted SIRA has recently published the Workers Compensation System monthly dashboard report for July 2018. Members were pleased to note that the report is made available in a range of formats to facilitate access by a diverse public audience.
• Members were provided an update on the progress of the NSW Government commitment to reform workers compensation dispute resolution arrangements. The program Steering Committee continues to meet regularly to guide the process of implementing the related legislative change.
• Board Members were provided an update on the implementation of section 39 of the Workers Compensation Act 1987.

Trevor Matthews
Chairperson, SIRA Board

At its July meeting, the Board received an update from the Chief Executive about her appearance earlier that week before the NSW Parliamentary Legislative Council Standing Committee on Law and Justice where she responded to a considerable number of SIRA-related enquiries.

The Board was advised about progress in reforming the Home Building Compensation (HBC) scheme. The Board approved the final Home Building Compensation (Contribution) Alternative Indemnity Product (AIP) Guidelines which detail the regulatory arrangements that will apply to licensed providers under the HBC scheme. Board Members discussed the Guidelines at length, noting the incorporation of consultation feedback and the significance of the Guidelines in that they will permit providers to enter the HBC market, to support the government’s objective for the HBC scheme to be competitive, innovative and sustainable.

The Board reviewed the Compulsory Third Party (CTP) Scheme Performance Report 2016-17 and was pleased to learn that SIRA plans to issue future reports on a more timely basis, as enabled by improved data reporting functionality introduced as part of the new 2017 CTP scheme. The Report is provided to the Legislative Council Standing Committee on Law and Justice annually, as a Committee recommendation of a previous review, and will inform the 2018 review of the CTP insurance scheme.

At our meeting, Ms Nancy Milne, OAM, currently Deputy Chair of the SIRA Board, and Chair of the SIRA Audit and Risk Committee (ARC), provided an update on the July 2018 ARC meeting. Board Members noted the extensive work completed to facilitate SIRA’s compliance with End-of-Financial Year requirements.

Members were provided an update on the progress of the NSW Government commitment to reform workers compensation dispute resolution arrangements. Chaired by the SIRA Chief Executive, the program Steering Committee continues to meet regularly to steward the process of implementing the related legislative change.

Other items considered at the July 2018 Board meeting included:

• The Board noted an amendment to the Motor Accident Guidelines under the Motor Accident Injuries Act 2017, and SIRA’s intention to review and amend the Guidelines three times per year, with the next review expected to commence in September 2018 and an updated version to be issued in December 2018 if necessary.
• Board Members were provided an update on the implementation of section 39 of the Workers Compensation Act 1987.
• The Board noted a status update on the Workers Compensation Claims Administration Manual (CAM) and Guidelines Review project. In consultation with stakeholders, SIRA continues work to develop a CAM that would apply to all insurers in the workers compensation system.

Trevor Matthews
Chairperson, SIRA Board

The SIRA Board held its June meeting in SIRA’s Gosford office. This provided the opportunity for Board Members to meet with staff before the meeting. Board Members participated in a panel session where Dr Rhys Bollen, Executive Director, Workers and Home Building Compensation Regulation, quizzed members about their visions for the business and asked them to speak about their personal experiences and aspirations for SIRA as a modern, principles-based, outcomes-focused regulator. I know that my fellow Board Members enjoyed the opportunity and trust that those present in person or via the webcast did also.

As the SIRA Board did not meet in May 2018, Members considered several papers Out of Session to address time-critical Compulsory Third Party (CTP) matters between the April and June 2018 Meetings. Specifically, the Board noted the per policy fixed dollar levy rates for taxis (Class 7 vehicles) will be reduced commencing 1 July 2018, as directed by the Minister for Finance, Services and Property (3 May 2018). The Ministerial Direction under section 20(1) of the State Insurance and Care Governance Act 2015 (SICG Act) was made to reduce the Fund Levy for taxis to match that collected for class 1 vehicles, and will remain in place until 30 June 2019, or until SIRA has sufficient data on relative claims frequency and usage to update the Levy rates for rideshare, taxi and hire car operators.

At our meeting, the Board was pleased to note the CTP Green Slip scheme quarterly insights report – January to March 2018, which provides information about the first full quarter of the 2017 scheme along with information on the 1999 scheme.

The report marks an important step in SIRA’s ongoing efforts to build the community’s awareness of the CTP Scheme as it follows the injured person’s journey and experience through case study examples. Members noted the report is publicised through the Motor Accidents Bulletin, is posted on the SIRA website, and is also sent directly to CTP insurers and legal professional bodies.

Ms Nancy Milne, OAM, currently Deputy Chair of the SIRA Board, and Chair of the SIRA Audit and Risk Committee (ARC), and CTP Premium Committee of the Board, provided an update on the April 2018 meetings of the ARC and June 2018 meeting of the CTP Premium Committee. Board Members noted the Committee’s discussion of the CTP Scheme Actuary’s report on 2017 Scheme monitoring as at April 2017, and CTP Scheme whole-of-scheme risks and mitigations.

Board Members noted the update on SIRA’s development of a Point to Point Strategy, and the fast-paced nature of the point to point industry with rapid technological disruption. Members were supportive of SIRA’s approach in engaging with stakeholders on future trends in the industry.

The SIRA Board noted an update on the concurrent 2018 reviews of the Workers Compensation Scheme and the CTP insurance scheme by the NSW Parliamentary Legislative Council’s Standing Committee on Law and Justice. These are the Committee’s second reviews of the Workers Compensation and CTP Schemes since the commencement of the SICG Act. In consultation with myself as Board Chair, SIRA prepared a short factual submission to the Committee covering both scheme reviews.

Board Members were provided an update on the progress of the NSW Government commitment to reform workers compensation dispute resolution arrangements. The Board was advised responsibility for leadership of the NSW Workers Compensation Dispute Resolution Reform Program of work has been transferred to SIRA from the Department of Finance, Services and Innovation (DFSI) Central Policy Office (CPO). The CPO had completed an extensive review culminating in the proposed Government reforms announced by the Minister for Finance, Services and Property on 4 May 2018. More information on the process to date is available on the DFSI website.

Other items considered at the June 2018 Board meeting included:

• Board Members were provided with the SIRA Dispute Resolution Services Quarterly Data Report for January to March 2018.
• Board Members were provided an update on the implementation of section 39 of the Workers Compensation Act 1987. SIRA is working with key stakeholders to provide policy clarification and aid mutual understanding of the circumstances where a worker re-commences weekly payment following a Workers Compensation Commission determination (greater than 20 percent permanent impairment or has not reached maximum medical improvement).
• The Board noted an update on the Workers Compensation Claims Administration Manual (CAM) and Guidelines Review project, with advice due to the Board in July 2018 in relation to significant policy issues and proposed consultation strategy to engage stakeholders on CAM content and amended Guidelines. It is anticipated a further update will be provided to the Board in October 2018 on any significant policy or stakeholder issues prior to gaining final approval for publishing the CAM.
• An update was provided on SIRA’s consideration of innovation ideas submitted by insurers in relation to the CTP Innovation Support Framework (Transitional Excess Profit and Loss).
• Board Members were pleased to note the launch of the NSW Mentally Healthy Workplaces Strategy 2018-2022, with a $55 million program announced to create mentally healthy workplaces across NSW. The strategy represents a collaboration between key government agencies including icare, SafeWork NSW and SIRA on delivery of a range of evidence-informed interventions, and represents the most substantial investment in workplace mental health in Australia’s history.

Trevor Matthews
Chairperson, SIRA Board

The SIRA Board generally meets in May of each calendar year.

The Board did not meet this month, with the next meeting scheduled in June 2018.

The Board was pleased to receive an update on the Young Drivers Telematics Project which was jointly announced by the Minister for Finance, Services and Property and Minister for Roads, Maritime and Freight on 28 March 2018. Up to 1,000 drivers under the age of 25 will be given the chance to participate in a NSW Government trial with in-car technology aimed at reducing road casualties across the state.

Young drivers who hold P1, P2 or unrestricted licences, who live in western Sydney and regional NSW, will be able to participate in the trial. Eligible drivers can pre-register via the SIRA website.

Ms Nancy Milne, OAM, currently Deputy Chair of the SIRA Board, and Chair of the SIRA Audit and Risk Committee, and Compulsory Third Party (CTP) Premium Committee of the Board, provided an update on the April 2018 meetings of each Committee. Of specific note, Board Members noted the Committee’s advice on the proposed principles of the CTP Scheme Innovation (Bonus) Framework, which is an integral part of the Transitional Excess Profit and Loss mechanism within the Scheme.

The Board endorsed the principles underpinning the Framework. Members reinforced their support for encouraging innovation that benefits policy-holders, injured people and their families, and the wider community/public.

The Chair of the icare Board, the Interim Chief Executive Officer and Managing Director and other icare executives met with the SIRA Board, and delivered a presentation on the valuation of the liabilities for the workers compensation Nominal Insurer scheme managed by icare, an update on the new claims model, and an update on icare’s customer and operations approach.

The Board was provided an update on the SIRA Workers Compensation Open Data Project which had been considered at the March 2018 Board Meeting, and endorsed a hybrid report containing open data and high level indicators in a dashboard infographic format. This is an exciting step for SIRA in prioritising the proactive release of workers compensation scheme data, and the Board looks forward to enhancements in future data releases.

Board Members were provided with an update on the implementation of section 39 of the Workers Compensation Act 1987. SIRA continues to work closely with insurers and key stakeholders to ensure claimants/workers continue to have access to a range of support and information regarding the section 39 changes. This includes reviewing insurer strategies to monitor seamless claimant transition off weekly payments related to section 39 to other means of support as required.

The 2018/19 Workers Compensation Market Practice and Premium Guidelines (MPPGs) introduced a 30 percent cap on premium rate increases to address volatility within the workers compensation premium system. SIRA has recently consulted with insurers and industry on a possible exemption from the capping provision for employers with a record of poor work, health and safety culture and/or behaviour, and specifically, breaches of Work Health & Safety legislation. As there was a lack of stakeholder support for an exemption at this time, the SIRA Board approved retaining the MPPGs in their current form, and noted that SIRA will pursue a resolution on this key issue through working with insurers, industry and SafeWork NSW over the next six months.

Other items considered at the April 2018 Board meeting included:

• The reformed Home Building Compensation Scheme commenced on 1 January 2018. The Board was provided a status update on the scheme, and noted SIRA has commenced targeted consultation on Draft Contributions Guidelines.
• As a result of reforms to the NSW (CTP) Green Slip scheme, over four million eligible CTP policy holders are entitled to claim a refund on their Green Slips. The Board was provided an update on the state-wide advertising campaign to ensure eligible motorists are aware of their entitlements, with a social media component of the campaign proving to be a strong driver of the volume of refund claims and website visits early in the campaign.
• The Board noted SIRA is currently reviewing and refining its approach to performance reporting to the Board, including in relation to Scheme performance and outcomes, Organisational performance, and Performance against the Delivery Plan (contained in the SIRA 2018 Strategic Plan). The Board was advised details on the future performance reporting approach would be presented at the next Board Meeting for Members’ endorsement.
• Board Members noted the ongoing policy work of the DFSI Central Policy Office and Reference Group on the Workers Compensation Dispute Resolution Review.

Trevor Matthews
Chairperson, SIRA Board

The SIRA Board approved release of draft Home Building Compensation (contribution) alternative indemnity product (AIP) guidelines for targeted consultation with key and registered stakeholders. SIRA will conduct targeted consultation for four weeks on the draft guidelines that will specify the regulatory requirements for the contributions (compared with premiums) that AIP providers will collect. Members also approved the draft guidelines as interim guidelines to assist any AIP provider that might want to apply for a licence during the consultation period.

Members were updated on SIRA’s Taxi, Hire Car and Ride Share Strategy. SIRA is progressing kilometre-based Green Slips charging and greater regulatory fairness for the point to point industry, with intensive consultation having occurred to date. Additional, more technically-oriented consultation is underway to facilitate implementation of the point to point solution on 1 April 2018.

The Board was provided with an update on the implementation of section 39 of the Workers Compensation Act 1987. SIRA continues to work closely with insurers and key stakeholders to ensure claimants/workers continue to have access to a range of support and information regarding the section 39 changes.

Board Members were provided a draft insights report on the Compulsory Third Party (Green Slip) Scheme for the December 2017 quarter. The Board’s input was sought to inform SIRA’s progressive development of this report to best reflect performance of both the former 1999 Scheme and the new 2017 Scheme. Members also discussed key principles which will underpin the new Scheme performance monitoring framework and approach. Scheme reports are available on the SIRA website.

The Board was pleased to endorse the SIRA Workers Compensation Open Data Project, in line with the SIRA priority to increase the proactive release of workers compensation scheme data as part of its regulatory approach. SIRA supports the principles of open data as committed to by Government in the Government Information Public Access Act 2009 and subsequent review of its Open Data Policy, and is seeking to align with the ‘work-in-progress’ NSW Department of Finance, Services and Innovation Open Data Strategy through the project outcomes.

Other items considered at the March 2018 Board meeting included:

• The Board approved contribution rates for levies used to fund regulatory expenses for the Home Building Operational Fund and Workers Compensation Operation Fund, and contribution rates for funds used for claims paid by the Dust Diseases Authority (icare dust diseases care).
• The SIRA Board was provided insights on outcomes of SIRA strategic planning, including internal roadmaps to deliver on key priorities over the next 12 to 18 months.
• Board Members noted the ongoing policy work of the DFSI Central Policy Office and Reference Group on the Workers Compensation Dispute Resolution Review.

Trevor Matthews
Chairperson, SIRA Board

At the February 2018 meeting of the SIRA Board, Members received an update on the roll-out of the new Home Building Compensation Scheme, which commenced on 1 January 2018. Members welcomed advice of successful implementation to date underpinned by the previously developed supporting regulations, guidelines and a provider licensing framework. The Board was pleased to note the accompanying launch of a new online Home Building Compensation Certificate Check – a digital register of home building certificates for building works over $20,000 in NSW. Through the online Certificate Check, homeowners can confirm the validity of their Home Building Compensation insurance policy, including any previous claims on the policy. This marks an innovative step in community protections.

The Board was provided with an update on the ongoing implementation of the new Compulsory Third Party (CTP) Scheme. In line with the Board-approved Motor Accident Guidelines – Premiums Refund published on 19 January 2018, delivery of refunds to NSW businesses has commenced. Members noted that work continues on finalising processes to deliver premium refunds to individual citizens.

Ms Nancy Milne, OAM, currently Deputy Chair of the SIRA Board, provided an update on the first meeting of the CTP Premium Sub-Committee of the Board, which was held on 7 February 2018. Board Members noted the progress made in establishing the Committee and specialist advisory expertise on CTP premium matters which was provided.

Mr Peter Dunphy, Executive Director - SafeWork NSW, provided a highly informative presentation on emerging workplace health and safety issues over the 2018/2019 period and beyond. Board Members welcomed a progress update on the NSW Work Health and Safety Roadmap 2022, a six-year strategy that aims to protect workers from harm, reduce unnecessary compliance and secure safety standards in NSW workplaces. The Board was encouraged to note insights on existing collaboration between SIRA and SafeWork NSW, and positive trends on the Roadmap key indicators.

The Board was provided with an update on the implementation of SIRA’s strategy relating to section 39 of the Workers Compensation Act 1987. Members noted the highly structured set of operational arrangements SIRA put in place over the December 2017 to January 2018 period to ensure provision of a range of support and information regarding the section 39 changes. Supports include an after-hours answering service on the SIRA 13 10 50 customer service line and 24-hour counselling service for workers experiencing acute psychological or financial / social distress, introduced from 15 December 2017 and continuing to provide services.

Members were advised of the imminent departure of Ms Belinda Cassidy, who fulfilled the role of Principal Claims Assessor, Motor Accidents Claims Assessment and Resolution Service for many years. In line with provisions of the Motor Accident Compensation Act 1999, Ms Cassidy’s was a key Ministerial appointment to the Principal Claims Assessor statutory officer role. Board Members expressed recognition of Ms Cassidy’s dedicated service over a substantial period and, on behalf of the SIRA Board, I wish to thank Ms Cassidy, and wish her every success for her future.

Other items considered at the February 2018 Board meeting included:

• The Board noted the 2017 Annual Calendar Year Update for SIRA Dispute Resolution Services, with a summary report on the trends in dispute resolution services to be made available on the SIRA website.
• Members discussed a draft SIRA People and Culture Strategy, noting proposed development of a ‘Culture Plan’ identifying SIRA values, cultural strengths and behavioural outcomes – in alignment with the Department of Finance, Services and Innovation (DFSI) and NSW Public Sector values. The Board noted engagement sessions with SIRA staff are planned in the next quarter to develop the Culture Plan and inform an Action Plan to roll-out the People and Culture Strategy. The Board is looking forward to seeing the outcomes of engagement with SIRA staff when the final Strategy, Culture and Action Plans are brought back to the Board in June 2018.
• Board Members considered an evaluation approach to assess the performance of the Board, with such reviews to occur at least every three years in accordance with the SIRA Board Charter.
• The Board engaged in discussion on ongoing policy work of the DFSI Central Policy Office and Reference Group on the Workers Compensation Dispute Resolution Review.

Trevor Matthews
Chairperson, SIRA Board

The calendar year schedule of Board Meetings generally commences in February.

The SIRA Board did not meet this month.

Prior to the December Board Meeting, Members were very pleased to briefly join SIRA staff in end of year celebrations. We enjoyed the opportunity to meet with staff and thank them for their contribution to SIRA’s achievements of 2017.

I also took the opportunity to acknowledge Ms Carmel Donnelly’s recent confirmation as Chief Executive of SIRA, which was wholeheartedly endorsed by the Board. The Board also congratulated Dr Rhys Bollen on confirmation of his appointment as Executive Director, Workers and Home Building Compensation Regulation.

At our meeting the Board approved the final Home Building Compensation standard licence conditions, application guidelines and notification requirements for licensed insurers and licensed providers in anticipation of the planned commencement date for the Home Building Amendment (Compensation Reform) Act 2017 on 1 January 2018.

Board Members received an update on the roll-out of the new Motor Accident Insurance (Compulsory Third Party) Scheme, which commenced on 1 December 2017. The Board welcomed advice that the “go live” was successful, including the launch of additional new Scheme content on the SIRA website as part of a strategic communication campaign. Additional information has been made available promoting both Dispute Resolution Services and the new online portal which has been made available to aid the community in lodgement of dispute applications.

The Board approved the Motor Accident Premium Refund Guidelines, which will advise Insurers on the method for calculating refunds for motorists/eligible policy holders and the related administration. A public information campaign is scheduled for early 2018 to provide motorists/eligible policy holders with advice on arrangements for the refunds.

Subject to final technical/editorial changes, the Board approved the 2018 Workers Compensation Annual Performance Report. Providing information on the 2016/17 financial year, the Board noted the Report utilises the latest available data from insurers as at June 2017, and includes NSW data collected by Safe Work Australia. SIRA is committed to providing timely reporting on the performance and status of the workers compensation system, and expects to release the report in January 2018.

Board members received an impressive presentation by the icare Chief Executive Officer and other icare executives on the progress with scheme agent transition, the introduction of a new claims operating system, and the valuation of the liabilities for the workers compensation Nominal Insurer scheme managed by icare.

The Board was provided with a monthly update on the implementation of SIRA’s strategy relating to section 39 of the Workers Compensation Act 1987. Members noted the work to ensure operational arrangements are in place.

Other items considered at the December 2017 Board meeting included:

• The Board approved SIRA’s Strategic Plan for activities up until December 2018, and noted the plan will shortly be made available on the SIRA website.
• Board Members noted work has commenced on developing and implementing a Claims Administration Manual for Insurers under section 192A of the Workers Compensation Act 1987. The Manual will provide an accessible and transparent claims handling framework outlining best practice principles, expectations and standards for claims management processes and practices.
• Members were advised that a review of the existing suite of workers compensation Guidelines will occur concurrently with the Claims Administration Manual development, with amendments to ensure all Guidelines are current and valid, with key issues identified by stakeholders addressed where appropriate.
• The Board had the opportunity to review a forward schedule of items for their consideration to June 2018.

Trevor Matthews
Chairperson, SIRA Board

The Board received an update on the most recent progress on the Motor Accidents Insurance (Compulsory Third Party) Scheme reform. Members again acknowledged the substantial efforts by SIRA, DFSI, insurers and partner organisations in preparing for the new scheme and were delighted to hear that all systems were “go” for introduction of the reforms on 1 December. This is an historic change which will deliver significant benefits to the citizens of NSW and reflects tremendous efforts by all those involved.

Board Members were very pleased to approve (in-principle, subject to any technical amendments) further supporting instruments for reforms under the Home Building Amendment (Compensation Reform) Act 2017 due for implementation on 1 January 2018. These included the final Home Building Compensation Prudential Guidelines, Premium Guidelines, and Eligibility Guidelines; and draft Home Building Compensation standard licence conditions, application guidelines, and notification requirements for licensed insurers and licensed providers (alternative indemnity providers) for imminent targeted consultation with key stakeholders.

Following on from extensive consultation in late 2016 and in accordance with a strategy to continuously improve the workers compensation premium system, SIRA consulted with licensed insurers and other stakeholders on proposed amendments to the 2017/18 Workers Compensation Market Practice and Premium Guidelines (MPPGs). At this meeting, the Board noted that SIRA has also obtained the requisite actuarial and legal feedback on the proposed 2018/19 Workers Compensation draft MPPGs, and approved them to be published for consultation.

At the meeting, the DFSI Central Policy Office team updated Members on progress of the review of the workers compensation insurance dispute resolution system. The Board noted that a discussion paper will shortly be released for public consultation.

The Board was provided with the monthly update on the implementation of SIRA’s strategy relating to section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. Members noted the plans in place to ensure effective claimant support over the December 2017 to January 2018 period.

Board Members received a presentation on SIRA’s workers compensation insurer supervision model, noting the model adopts a collaborative and commercial approach to monitoring and supervising performance across 77 insurers/agents. A demonstration was provided on the Salesforce cloud-based fully digital solution SIRA has been utilising internally since July 2017, and how its functionality is assisting SIRA to meet its statutory responsibilities and subsequently improve the experience of workers.

Other items considered at the November 2017 Board meeting included:

• The Board continued discussions on components of SIRA’s Strategic Plan, and noted that work is on track to present the new Strategic Plan to the Board for endorsement at the December 2017 meeting.
• The Board noted the CTP Insurance Scheme Quarterly Report as at September 2017, and that quarterly statistics on the performance of the Scheme will be released to licensed insurers as required by the Motor Accidents Compensation Act 1999. It was acknowledged that future performance reports will continue to include details about old scheme claims as well as information about the new CTP Scheme.
• The Legislative Council Standing Committee on Law and Justice has been designated to undertake the Statutory Review of the State Insurance and Care Governance Act 2015. SIRA’s submission was provided to the Committee by 31 October 2017, and our SIRA Acting Chief Executive was a witness at the public hearing, which took place on
  7 November 2017.
• The Board had an opportunity to provide feedback on a proposed ‘whole-of-SIRA’ Complaint Handling Framework, aligning to the Whole of Government Complaint Handling Improvement Program under the Premier’s Priority to improve Government Services. Further discussions with the Board will include consideration of complaint handling processes relating to the schemes that SIRA regulates, and regarding Dispute Resolution Services.
• The Board was joined by NSW Treasury Corporation representatives and an external consultant from Mercer, who delivered a presentation as a follow-on to an October discussion with the Board. This enabled the finalising of changes to the strategic asset allocation and the dynamic asset allocation ranges for the Insurers’ Guarantee Fund, for which SIRA is responsible.

Trevor Matthews
Chairperson, SIRA Board

The Board was very pleased to note the significant progress which has been made on Motor Accidents Insurance (Compulsory Third Party) Scheme reform. This has been a massive effort to date and the new scheme is on track to commence on 1 December 2017.

The Board noted that the Minister for Finance, Services and Property and the SIRA Acting Chief Executive have signed the new CTP Insurance Industry Deed, as have all the current Compulsory Third Party (CTP) insurers. The SIRA Acting Chief Executive subsequently also approved new scheme licences for the CTP insurers, and SIRA has communicated with insurers that their licences have been granted. The new Green Slip prices have been reviewed by SIRA and are now available on the new Green Slip Price Check website. As well as delivering significant premium reductions (of the order of 24 per cent on average for the Class 1 metro headline price, compared to when the legislation was introduced), the new scheme will mark a significant change in claims management towards a much less adversarial approach.

Board Members were also updated on the continued high level of stakeholder consultation and progress in developing supporting instruments for the Home Building Compensation Scheme reform. With reforms under the Home Building Amendment (Compensation Reform) Act 2017 due for implementation on 1 January 2018, the Board provided approval for targeted consultation with key stakeholders on selected supporting instruments, and in-principle approval for those on which stakeholders have recently provided their feedback. This specifically relates to the current version of the Business Plan Guidelines and Claims Handling Guidelines which were informed by public consultation which closed on 18 October 2017.

At this meeting the Board had the opportunity to discuss options to improve the workers compensation insurance dispute resolution system with the Department of Finance, Services and Innovation central policy office team. Board Members noted that a discussion paper is expected to be released for public consultation in the near future.

The Board continued its discussions on the new SIRA Strategic Plan which will increase SIRA’s impact on outcomes for the people and businesses of NSW through risk and evidence-based, customer-centric, regulation and stewardship. Members noted that the new Strategic Plan will be presented to the Board for endorsement at the December 2017 meeting.

The Board was provided with the monthly update on the implementation of SIRA’s strategy relating to section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. Continuing its efforts to work closely with insurers and key stakeholders to ensure effective implementation of section 39 provisions, the Board noted that SIRA has written to insurers recommending that each worker affected by the transition be offered the opportunity to receive their final weekly payment entitlements in advance. SIRA has also introduced new Community Connect funding for workers to use to fund community support services or pay to address a specific barrier or need. Workers can access Community Connect if they have received notification from the insurer confirming that weekly payments will cease on or before 30 June 2018, due to section 39 of the 1987 Act, and need to apply for Community Connect through the insurer.

Other issues considered at the October 2017 Board meeting included:

• The Legislative Council Standing Committee on Law and Justice has been designated to undertake the Statutory Review of the State Insurance and Care Governance Act 2015. Submissions were due to the Committee by 31 October 2017.
• The Board reviewed SIRA’s draft annual report for the 2016-17 Financial Year.
• Joined by a NSW Treasury Corporation representative, Board Members received an insightful presentation from Mercer, external consultants to the business, who work with SIRA in meeting its financial accountabilities for the workers compensation Insurers' Guarantee Fund.
• The quarterly update on People and Culture programs in SIRA:
  • SIRA continues work to develop a strong wellbeing-focused and inclusive culture across its three sites.
  • The Board noted the key people and culture statistical information provided.
  • A SIRA People and Culture Strategy will include an action plan addressing the SIRA results in the 2017 People Matter Employee Survey.

Trevor Matthews
Chairperson, SIRA Board

The first item on the agenda for our September meeting was a discussion about strategy with the broader leadership team of SIRA directors. This followed a special session earlier in the week where the Board reviewed the progress SIRA has made since its establishment two years ago and confirmed the purpose and mission of our organisation. At the meeting Board Members enjoyed a stimulating interchange with the SIRA directors and the group discussed our key priorities for the next eighteen months. We are determined to develop SIRA as a modern, data driven, outcomes focussed regulator that makes a genuine positive difference to the people and businesses of NSW. Board members valued meeting with the broader SIRA Leadership team to identify ‘what success looks like’ for SIRA.

The Board was pleased to note that SIRA is working closely with the Department of Finance, Services and Innovation in developing options to improve the workers compensation insurance dispute resolution system. The project is on track to achieving the milestones set out, with discussions on improvements to the current system taking place later this year. The aim is to introduce system reform in 2018.

The Board was updated on the Premium Relativities and the Risk Equalisation Mechanism (REM) for the new Compulsory Third Party (CTP) Scheme. It was highlighted that SIRA has been pressure-testing the approach to new premiums that will apply from 1 December to coincide with the commencement of the new Scheme. The outcomes of this analysis identified that minor changes are required to premium relativities and REM amounts for the new scheme, based on mitigating the risk of an increase in premiums for motorcycle owners, and making adjustments to allow for new distance-based charges for rideshare and taxi operators. The adjusted premium relativities figures for motorcycles and point to point vehicles were approved by the Board.

The Board was provided with the monthly update on the implementation of SIRA’s strategy relating to section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. Members noted that SIRA continues to work closely with Insurers and key stakeholders to ensure implementation of section 39 is as smooth as possible.

The Board was impressed with a demonstration of a new Salesforce-based online system to receive and administer disputes (‘DRS Live’). This system will introduce new modern functionality and replace several complicated and extensive spreadsheets. It is vital to help us deliver timely, independent, fair and cost-effective resolution of disputes.

Trevor Matthews
Chairperson, SIRA Board

At the August meeting, the Board received a presentation from the President of the Workers Compensation Commission, His Honour Judge Greg Keating, who provided an update on the Commission’s role, organisational initiatives, and approaches to early resolution of disputes in the system.

Improving customer satisfaction with key government services is a state priority and the SIRA Board was pleased to receive information about the increasing SIRA focus on improving outcomes for claimants and purchasers in the schemes and systems SIRA regulates. The Board was encouraged to hear about plans for cross-SIRA collaboration as the learnings from the 2016 CTP consultation process are equally applicable to parties in the workers compensation system.

The Board was pleased to note that SIRA and the NSW Data Analytics Centre (DAC) have been working in collaboration with data organisations to identify the capabilities and products that could provide significant benefits for the CTP Scheme (old and new), and for the regulatory capabilities of SIRA. Various initiatives are planned to leverage ‘Big Data’, and meet the key objectives of the new CTP Scheme through innovative digital solutions that will improve claimant experience and increase the proportion of benefits to customers.

The Board was updated on the development of Motor Accident Guidelines that set out the detail and operational considerations for the new Compulsory Third Party (CTP) Scheme. Provided for under the Motor Accident Injuries Act 2017, the Guidelines are in a secondary stage of consultation with a broad-based stakeholder group and interested parties. The Board also considered a risk report which detailed the major risks to the introduction of the new CTP program on 1 December and the mitigations in place to deal with those risks.

The Board was provided a monthly update on the implementation of SIRA’s strategy relating to Section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. Members noted ongoing progress in planning for the transition processes for affected claimants, and the level of community use of the SIRA Section 39 support and information service, contactable via email and phone, 13 10 50.

In line with SIRA’s financial accountabilities for the Workers Compensation Operational Fund (the Fund), the SIRA Board approved the Workers Compensation Fund contribution per cent for the 2017/18 Financial Year for Self- and Specialised Insurers. Established under section 34 of the Workplace Injury Management and Workers Compensation Act 1998 (the Act), the Fund is legislated to receive revenue from insurers, thereby providing for the operational budgets of SIRA, SafeWork NSW, the Workers Compensation Independent Review Office (WIRO) and the Workers Compensation Commission. Also of significance, the Fund provides funding for vocational programs for claimants under Section 53 of the Act administered by SIRA, and Legal Aid, through the Independent Legal Assistance and Review Service (ILARS), administered by the WIRO.

The Board provided in-principle approval for draft Business Plan Guidelines and Claims Handling Guidelines for the Home Building Compensation Scheme, with a view to these being consulted on in September 2017 as part of Phase 2 consultation on supporting instruments for the Home Building Amendment (Compensation Reform) Act 2017. The Board was also pleased that public consultation on the builder eligibility and premium discussion papers commenced earlier this month, comprising a call for written submissions and a workshop with key stakeholders.

Other issues considered at the August 2017 Board meeting included:

• Trends over the 2016/17 Financial Year in dispute resolution services that SIRA delivers within the Compulsory Third Party (CTP), workers compensation and Lifetime Care and Support schemes.
• An update on People and Culture programs in SIRA:
  • SIRA continues to develop a strong wellbeing and inclusion-focused culture across its three sites, working in connection with the Department of Finance, Services and Innovation (DFSI) Great Place to Work strategy, the Diversity Council and the staff Ambassador Network.
  • The 2017 NSW People Matter Employee Survey (closed on 30 June) results are being analysed, with SIRA results expected to be available towards the end of August.

Trevor Matthews
Chairperson, SIRA Board

At the July meeting the Board approved the principles for a system to adjust for excess profits or losses that arise in the transition to the New Compulsory Third Party (N-CTP) Scheme, scheduled to be introduced on 1 December this year. The Board noted the substantial consultation process that has been undertaken with a range of stakeholders including insurers in achieving this outcome, which is appropriate given the new system breaks significant new ground.

The Board’s feedback was sought and an update provided on the development of Guidelines that set out the detail and operational considerations for the N-CTP Scheme. These Guidelines are currently under consultation with key stakeholders.

The Board was pleased to note successful progress in implementing the N-CTP Scheme, including attendance at a number of key meetings by the SIRA Board Chair and Deputy Chair with stakeholders and the Minister for Finance, Services and Property.

As signalled in the previous Board Communiqué, the NSW Parliament passed the Home Building Amendment (Compensation Reform) Bill 2017 on 20 June 2017, and it received assent on
27 June. The Board was pleased to note that a small number of provisions of the Bill commenced on 30 June 2017, and that SIRA aims to start stakeholder consultation on high-priority supporting instruments in August 2017, namely builder eligibility and premium-setting.

SIRA is conducting a review of the workers compensation specialised insurance licensing framework to improve customer outcomes, and ensure the framework is fit for purpose to complement SIRA’s recently introduced Licensed Insurer regulatory framework. The Board was updated on the review, with Members asked to provide feedback on policy options for further development ahead of proposed consultation with stakeholders in September 2017.

In line with SIRA’s financial accountabilities for the Workers Compensation Operational Fund (the Fund), the SIRA Board approved the publication of the deemed premium income methodology for self-insurers. Established under section 34 of the Workplace Injury Management and Workers Compensation Act 1998 (the Act), the Fund is legislated to receive revenue from insurers, thereby providing for the operational budgets of SIRA, SafeWork NSW, the Workers Compensation Independent Review Office (WIRO) and the Workers Compensation Commission. Also of significance, the Fund provides funding for vocational programs for claimants under Section 53 of the Act administered by SIRA, and Legal Aid, through the Independent Legal Assistance and Review Service (ILARS), administered by the WIRO.

The Board was provided a monthly update on the implementation of SIRA’s strategy relating to Section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. Members were pleased to note significant progress has occurred in cross-agency planning of the transition processes for affected claimants.

In early 2017, the NSW Law and Justice Committee reported on the complex nature of dispute resolution processes in workers compensation matters. The Board was provided an update on work underway by the Department of Finance, Services and Innovation to support Government’s response to the recommendations of the Parliamentary Review, which is due by September 2017.

The Board also considered and provided feedback on a draft whole-of-SIRA Compliance and Enforcement Policy, and noted the efforts of the leadership in the Compliance and Enforcement branch to provide new vision to support a more effective, risk-based approach to regulation.

Other issues considered at the July 2017 Board meeting included:

• A demonstration of an upgrade to the Compulsory Third Party insurance Green Slip Calculator which is designed to improve the customer ‘shopping around’ experience.
• A demonstration of a new on-line claims notification tool for Compulsory Third Party claims.
• An update on People and Culture programs in SIRA:
  • NAIDOC (National Aboriginal and Islanders Day Observance Committee) Week celebrations, which were attended by SIRA staff across the three locations to celebrate Aboriginal and Torres Strait Islander culture.
  • The 2017 NSW People Matter Employee Survey, which closed on 30 June, with the Department of Finance, Services and Innovation cluster continuing to lead the way with staff participation levels rising to 93 per cent. Since 2014, Better Regulation Division and SIRA have increased their response rates by 27 per cent. Evaluation is underway and reporting against results is expected in the near future.
  • A number of staff engagement projects continue to be progressed in response to the 2016 NSW People Matter Employee Survey.
  • Recent structural changes within DFSI, with the establishment of a stand-alone Chief Executive of SIRA at the Deputy Secretary level.

Trevor Matthews
Chairperson, SIRA Board

The Board was pleased to note the substantial progress on preparation and consultation ahead of the commencement of the new Compulsory Third Party (CTP) Scheme by 1 December 2017. The update provided to the Board included advice on the data and digital strategy initiatives for reform of the CTP Scheme, both from the perspective of improving the customer experience in interacting with the Scheme, and continuous improvement of SIRA’s capability to monitor, supervise and drive scheme performance.

Board Members were also briefed on work and consultation underway on developing premium elements under the new Scheme. A milestone in CTP reforms will be reached over forthcoming weeks with the scheduled ‘go-live’ of the premium component of the Scheme.

The Chief Executive Officer of icare, along with senior executive advisors, presented to the SIRA Board on the December 2016 valuation of the liabilities of the workers compensation Nominal Insurer scheme managed by icare.

The Board again received an update on implementation of SIRA’s strategy relating to Section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. Insurer information sessions on the section 39 transition have been continuing, with additional sessions held in the week of 19 June to fulfil the demand for the sessions. Insurers have been provided with up-to-date information on current activities and new initiatives, including the section 39 information and support services, and section 53 community connect program, giving insurers the opportunity to hear directly from guest presenters from the Workers Compensation Commission, HSNet and Ability Links.

Board Members were also advised that SIRA had recently published updated information about section 39 on its website to assist workers and stakeholders to understand the impact of the legislation and the way it applies to them. Stakeholders have been informed of the update via a SIRA bulletin on 1 June 2017, together with communication which directs insurers to the information on the website when communicating about section 39. The Workers Compensation Commission will also refer to this information in their next ‘E Bulletin’.

SIRA is consulting with self-insurers in the final phase ahead of the anticipated publishing of the Workers Compensation Self-insurance licensing framework by 1 July. The Board was advised that SIRA will consult with the NSW Self-Insurer Association during the implementation transitional period to 31 December 2017 as self-insurers are building capability to meet the new licence conditions.

Other issues considered at the June 2017 Board meeting included:

• Quarterly statistics released by SIRA Dispute Resolution Services. Board Members were provided with an update on operational performance of the Services, and briefed on significant trends and strategic issues for consideration.
• Members were provided with a progress update on Government reform of the Home Building Compensation Scheme and were pleased to be informed at the end of the meeting that the Act reforming the scheme had been passed by the NSW Upper House that day.
• Further to discussion at the May meeting of the Board, Members were advised that work is underway to plan for the launch by August 2017 of the updated Small Business Strategy for work, health and safety and workers compensation.

An update on People and Culture programs in SIRA:

• The annual Better Regulation Division and SIRA Staff Awards were presented at a Ceremony at NSW Parliament House in Sydney on 7 June 2017. Staff were delighted to hear from the Hon. Minister Kean MP, Minister for Innovation and Better Regulation, and I had the privilege also of speaking at the ceremony on behalf of the Board. Staff from the Dispute Resolution Services division were finalists in the ‘Commitment to Wellness and Safety Award’. I was mightily impressed by the energy and enthusiasm of the people in the room. This augurs well for the future.
• The 2017 NSW People Matter Employee Survey went live on 2 June 2017, with staff encouraged to ‘have their say’ by 30 June 2017.

Trevor Matthews

Chairperson, SIRA Board

The Board was pleased to note an updated Small Business Strategy for work, health and safety and workers compensation has been drafted in collaboration with the Small Business Reference Group (SBRG) established through a SIRA commitment as part of the existing Small Business Strategy 2013 (Workcover: Making it Easier), with the Office of the Small Business Commissioner and SafeWork NSW.

This strategy was designed to help small businesses with limited time and resources better manage work health and safety, workers compensation and return to work, and is consistent with whole-of-Government directions in making it easier to do business and in supporting small business in particular. It will guide the work of SIRA, SafeWork NSW and the SBRG over the next three years.

At its May Meeting, the SIRA Board further considered the Motor Accidents Injuries Bill 2017 provision for Excess Profit and Loss Adjustment (profit normalisation) in the Motor Accident Injuries Compulsory Third Party (CTP) Scheme. Noting earlier consultation with insurers and the consideration of principles for a profit normalisation mechanism, the Board has now approved the use of a specific premium profit margin for the purposes of consultation with stakeholders on the design of the transitional provisions.

Quarterly statistics are released to the insurance industry on the performance of the CTP Scheme as required by the Motor Accidents Compensation Act 1999. The Board was therefore provided a quarterly update on the CTP Scheme to brief Members on any trends or changes in CTP premium prices, numbers of claims and insurer market share.

The Board received an update on the implementation of SIRA’s strategy relating to Section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. At this Meeting, the Board was provided proposed options for refining the implementation of the strategy, and considered updates to insurer guidance documentation and facts sheets which are due to be made available in May/June 2017.

Other issues considered at the May 2017 Board meeting included:

• SIRA’s approach to setting levies to fund the Dust Diseases Scheme considering analysis of actual Dust Disease claim rates and costs by industry.
• A progress update on Government reform of the Home Building Compensation Scheme.
• An update on People and Culture programs in SIRA:
  • In early May, Uncle Allen Madden performed a moving Welcome to Country ceremony at SIRA’s new home in the McKell Building, Sydney. Uncle Allen is a Gadigal Elder, a Board Member of the Metropolitan Local Aboriginal Land Council and a highly respected member of the Redfern Aboriginal Community. I had the privilege also of speaking at the ceremony.
  • The SIRA Executive Leadership Team is progressing the establishment of a SIRA people and culture executive committee and a people and culture strategy.
  • The SIRA Acting Chief Executive has signed a pledge as a commitment to one of the recent successful staff innovation projects, ‘Move more sit less’.
  • BRD/SIRA staff forums have been held in the Sydney CBD and Gosford locations, with a range of cross-team presentations.
  • The Dispute Resolution Services Great Place to Work team is continuing their program to improve the wellness and safety of others in the workplace by giving back to the community and raising almost $600 for Assistance Dogs Australia at their Easter celebrations, and commencing weekly fitness groups and a six-month Vitality program aimed at assisting staff to become their healthiest version.

Trevor Matthews
Chairperson, SIRA Board

In March 2017 the Motor Accidents Injuries Bill 2017 (the Bill) was passed through both houses of the NSW Parliament. The Bill aims to achieve an increased proportion of benefits to seriously injured road users and reductions in the time it takes to resolve claims, instances of claims fraud and exaggeration, and the cost of (Compulsory Third Party) Green Slip premiums. At the April meeting, the Board reviewed the detailed planning aiming to introduce the new scheme in December 2017.

The SIRA Board also considered the Bill’s provision for Excess Profit and Loss Adjustment (profit normalisation) in the Motor Accident Injuries Compulsory Third Party (CTP) scheme. Further to the Board’s release in January 2017 of a report entitled Reforming Insurer Profit in Compulsory Third Party Motor Vehicle Insurance, SIRA has canvassed several options with insurers for a profit normalisation mechanism (PNM). The principles for the PNM were discussed.

Since becoming the NSW workers compensation regulator in September 2015, SIRA has identified opportunities and developed strategies to improve the supervision and regulation of insurers within the workers compensation system. At its meeting on 24 April, the SIRA Board focused its strategic discussion on the workers compensation Insurer Supervision Model and discussed opportunities to improve insurer and system performance rather than only respond to non-compliance.

The Board again received an update on SIRA’s ongoing strategy relating to Section 39 of the Workers Compensation Act 1987 – facilitating benefit pathways, support programs and return to work assistance for those claimants transitioning off weekly benefits in certain circumstances after five years. The monthly consideration of the impact and implementation of the strategy enables the Board to provide advice on options for refining the implementation to better meet the objectives of the workers compensation system.

Other issues considered at the April 2017 Board meeting included:

• an update on government inquiries into the issue of autonomous vehicles, noting that the introduction of autonomous vehicles raises significant considerations for SIRA as the regulator of the NSW CTP scheme. States and territories around Australia have agreed to undertake a review of their CTP schemes within the next two years to identify any eligibility barriers to accessing these schemes by occupants of an autonomous vehicle, and subject to this review, substantial work will be needed to ensure any resulting reforms are nationally consistent. SIRA will continue to work with Transport for NSW and the National Transport Commission on this issue and provide updates to future Board meetings.
• an update on an independent review of the existing Motor Accidents Insurance Regulation and Lifetime Care & Support levies. SIRA will in due course advise on the outcomes of the review.
• a progress update on government reform of the Home Building Compensation Scheme.
• an update on people and culture programs in SIRA designed to continue to build a high-performance, inclusive, customer-centred culture that supports employee wellbeing and offers rewarding careers making a difference for NSW:
  • Since the last Board meeting, the SIRA Executive Leadership Team has decided to establish a SIRA people and culture committee to lead an integrated program to build capability and culture.
  • The Acting Chief Executive of SIRA is a member of the Department of Finance, Services and Innovation's (DFSI) Diversity Council, which is establishing seven DFSI Employee Resource Groups; and has recently become the executive sponsor for the employee resource group for people with disability.
  • SIRA’s existing Social, Networking, Opportunities, Wellbeing (SNOW) activities and groups have been aligned with the DFSI Great Place to Work (GPTW) strategy and Ambassador Network. Groups across the three SIRA sites have developed an integrated events calendar along with local activities.

Trevor Matthews
Chairperson, SIRA Board

At its 27 March meeting, the Board continued an agreed series of strategic discussions, on this occasion focusing on claimant experience and outcomes within Workers Compensation Insurance. The Board noted SIRA’s progress in developing a strategy to improve outcomes for workers compensation claimants, including return to work and health and wellbeing outcomes.

Further to intensive SIRA consultation with stakeholders, the Board considered and approved a new Self-insurance Licensing framework. The Board noted that the implementation of the framework will be supported by a new self-insurer supervision model.

The Board also considered new proposed Guidelines for Workplace Return to Work Programs. Noting that SIRA had conducted consultation to develop new Guidelines to improve the customer experience, deliver improved return to work outcomes, and reduce regulatory burden, the Board was pleased to endorse the Guidelines for release.

The Board also received an update on the SIRA Data and Digital Strategy, designed to improve the customer experience for direct users of the NSW Motor Accidents (CTP) Scheme and the monitoring of the scheme.

Other issues considered at the March 2017 Board meeting included:

• A progress update on CTP Scheme Reform.
• An update on the transition strategy relating to Section 39 of the Workers Compensation Act 1987, whereby SIRA is working with key stakeholders to facilitate benefit pathways, support programs and return to work assistance for those claimants facing the expiry of their benefits in certain circumstances after five years.
• The requirements, implications and potential impact of adopting common guidelines for the evaluation of individuals’ permanent impairment status for both the workers compensation and CTP schemes in NSW. It was agreed that this is not feasible until the revised CTP system has matured somewhat.
• Consideration of a background paper on the impact of lump sum compensation on injury recovery and return to work, including a summary of the available evidence on the impact of seeking financial compensation.
• Government reform of the Home Building Compensation Scheme, and an update from actuaries on the Scheme.
• An update on Staff Engagement activities underway across SIRA, and future planned activities for 2017 to improve culture, engagement and leadership including:
  • The staff survey specific to the Better Regulation Division (including SIRA) was launched, and closed on 17 March 2017. The analysis of survey results is underway and will inform the monitoring of progress against the NSW People Matter Employee Survey objectives.
  • The second divisional ‘Road to Success’ roadshow is on track to occur in May 2017, to deliver communications from the Deputy Secretary, Better Regulation and the Chief Executive, SIRA about key business priorities, mechanisms for engaging staff, and divisional culture.

Trevor Matthews
Chairperson, SIRA Board

In late 2016, the SIRA Board agreed on a targeted program of regular strategic discussions. At its 23 February meeting, the Board focused on its inaugural strategic discussions for 2017. The Board discussed SIRA’s values and principles as a contemporary regulator – a foundation for future strategic discussions. The Board also thoroughly discussed Compulsory Third Party premium regulation, and endorsed SIRA’s documented risk-based regulatory approach to CTP premiums.

As part of the SIRA mandate to ensure better availability of premium information to insurers, the Board considered a policy proposal on Workers Compensation Financial and Premium Supervision. In endorsing the policy position, the Board approved revised Workers Compensation Market Practice and Premiums Guidelines and revised Workers Compensation Licensed Insurer Business Plan Guidelines, which were consulted on in 2016. SIRA anticipates publishing the revised Guidelines on 1 March 2017.

The Board reflected on further advice on the review and revision of capital and prudential requirement to inform implementation of an improved framework that will apply to the various types of insurers operating in the NSW workers compensation system. Noting the outcomes of SIRA consultation regarding prudential standards and security requirements of workers compensation insurers, the Board will consider the self-insurer licensing framework at its meeting in March 2017.

The Board also noted that SIRA is reviewing the capital requirements for Specialised Insurers (including a mix of private and Government insurers) through the current review of the Specialised Insurer licensing conditions.

As part of a rotating schedule of reporting to the Board on the operating performance of SIRA Dispute Resolution Services (DRS), the Board considered the 2016 Annual Calendar Year Update reflecting a high level overview of annual trends in the services. The Board was very pleased to note the high-quality presentation of the report, and the significant improvements and positive trends in services provision including evidence of significantly improved case management and decision making processes for special assessments of procedural disputes referred to Claims Assessment Resolution Services. This report will be made available as part of scheduled stakeholder engagement sessions in March 2017.

Detailed discussion ensued on the Compulsory Third Party (CTP) Premium System Review and particularly the Risk Equalisation Mechanism (REM), a key instrument to provide better equity for consumers, pricing of risks for insurers, and strengthening of system integrity. Noting the planned start date of 1 May 2017 for the REM, the SIRA Board considered a number of critical issues impacting implementation. These included availability of a Clearing House Service Provider, the need for further review of the REM Deed and some current insurer filings, and an independent assessment of aspects of the REM commissioned in response to concerns raised with SIRA.

Acknowledging that any changes to implementing the REM may impact on insurers, the Board requested that CTP insurers be advised immediately after the Board Meeting of SIRA’s continued commitment to the REM and the Board-approved:

• delay in the start date of the REM until 1 July 2017;
• delay in the effective date of the Premium Determination Guidelines and the new Premium Relativities to the same date; and
• that further information about the filing process for the 1 July effective date would soon be provided.

Other issues considered at the February 2017 Board meeting included:

• CTP Scheme Reform, with the anticipated upcoming release of the findings of consultation on insurer profits and insurer claims handling and dispute resolution.
• Home Building Compensation, noting a further status update will be provided at the Board Meeting in March 2017.

An update on Staff Engagement activities underway across SIRA, and future planned activities for 2017 to improve culture, engagement and leadership including:

• The launch of a staff survey specific to the Better Regulation Division (including SIRA);
• A 2017 staff engagement calendar developed to provide transparency on activities, plans and events; and
• Introduction of an anonymous drop box as an avenue for staff to provide anonymous feedback, suggestions or complaints directly to the Deputy Secretary Better Regulation / Chief Executive SIRA.

Trevor Matthews

Chairperson, SIRA Board

The calendar year schedule of Board Meetings generally commences in February.

The SIRA Board did not meet this month.

At its last meeting for 2016, on 5 December 2016, the SIRA Board reflected on the progress made since the creation of SIRA, and commenced planning for 2017.

The Board considered the outcomes of SIRA’s review of the Nominal Insurer’s Valuation Report (June 2016), and recommendations regarding the valuation, as requested by the Minister.  Discussions included the:

• application of APRA standards and target funding ratio/range;
• impacts of s39 transition and legal costs on the system;
• Nominal Insurer’s Capital Management Policy;
• impacts for injured worker benefits; and
• recommendations for future Nominal Insurer Valuations.

The Board will approve the final report to be delivered to Minister Dominello by the end of December 2016.

The Board also considered in detail the CTP Premium System Review and approved changes required to provide better equity for consumers, pricing of risks for insurers, and avoiding insurer gaming in the system. The Board reviewed a number of mechanisms, including Premium Relativities, the Risk Equalisation Mechanism, and Premium Determination and Market Practice and Business Plan Guidelines.

Other issues considered at the December 2016 Board meeting included:

• The Workers Compensation Financial and Premium Supervision stakeholder feedback and policy considerations, with a Policy Proposal being finalised for Board consideration in February 2017.
• CTP Scheme Reform – Progress on consultations led by SIRA Board members, at the request of Minister Dominello.  The consultations sought feedback on discussion papers for insurer profits and insurer claims handling and dispute resolutions.  The findings of this are expected to be released in early 2017.
• The September 2016 quarterly reports for the Dispute Resolution Service (DRS) and the CTP Scheme.  The Board is enthusiastic about the DRS pilot program planned for early 2017 to bring a claims assessor in-house.  Also of particular interest, was the 33% increase in DRS lodgements resulting from CTP Scheme growth and the impressive finalisation of around 10,000 applications per year.
• Staff Engagement activities underway across SIRA, including feedback from the Road to Success Program, the Chief Executive’s online Question and Answer sessions, and planned activities for 2017 to improve culture, engagement and leadership.
• A 2017 targeted program for regular SIRA Board discussions around the range of strategic issues facing SIRA, including its values and principles as a contemporary regulator.

The Board would like to thank everyone at SIRA for your efforts during a very important formative year and wish you a very Merry Christmas and a safe and relaxing holiday. The Board is looking forward to working with you to progress SIRA’s important role in 2017.

Trevor Matthews

Chairperson, SIRA Board

At its meeting on 11 November 2016 the Board welcomed its newest member, Dr Graeme Innes AM, as a highly valuable addition to the SIRA Board as a well renowned disability advocate.

The Board held its meeting in SIRA’s Gosford Office for the first time since forming, and welcomed the opportunity to meet informally and hear direct from SIRA’s staff about their work.

The Board received a presentation from icare on its activities and key focus areas, including:

• the current valuation, funding ratio, and forward outlook
• customer experience improvements and journey mapping
• insurer and claimant early engagement to understand the impacts of s39

s39 (which came into effect in October 2012) provides that an injured worker’s rights to weekly payments will cease after 5 years unless the worker’s permanent impairment has been assessed as over 20%.

The Board also considered its approach to the review of the current funding ratio, and how any surplus should be dealt with, as requested by Minister Dominello.  It was agreed an expert advisory panel would be established to support the Board, and noted that stakeholders had been invited to identify any issues for consideration.  The Board expects to complete its review by the end of the year.

The Board considered this also in light of SIRA’s approach to customer experience and the review of the Nominal Insurer valuation. Measuring Customer Experience – WHBCR strategic approach discussion paper will be released shortly, and includes key elements:

• focusing on the customer journey
• accessing variety of sources customer experience data to avoid over surveying and validate findings
• recognising customer experience impacts on the health and wellbeing of individuals
• setting a benchmark through qualitative and quantitative measures.

Other issues considered at the November 2016 Board meeting included:

• The Board approved reductions in the Medical Care and Injury Services levy in response to recent premium increases.  This levy is applied to CTP premiums to fund the Lifetime Care and Support Scheme and SIRA’s costs of regulating the CTP Scheme.
• The recent reforms announced by Minister Dominello including the review of insurer profits in the CTP Scheme,  and greater choice for homeowners through the Home Building Compensation Fund. Highlighted also was the amount of stakeholder consultation being undertaken to inform and implement the government’s reforms.
• People Matter Survey results, key areas for improvement, Executive strategies and commitments, and regular reporting to the Board.  Key areas of focus are the effectiveness of the Staff Engagement Strategy, Data, Digital and ICT Strategy currently being implemented, and the Culture Strategy which is being drafted.

Trevor Matthews

Chairperson, SIRA Board

At its meeting on 11 October 2016 the Board endorsed the first Workers Compensation System Performance Report.

This Report is intended to provide stakeholders with data and information about trends and key issues impacting the workers compensation system.  It includes a range of measures that reflect the statutory objectives of the system, including:

• effectiveness - that injured workers receive care and medical treatment to support their return to work as soon as possible
• efficiency - benefits for injured workers are delivered at the lowest feasible administrative cost
• viability - the financial viability of the system
• affordability - the cost of the system to the community.

The 2016 Report, which will be published on SIRA’s website, includes the following key outcomes:

• the return to work rate has improved while the cost of premiums has reduced
• the number of claimants receiving weekly benefits has reduced while the average amount paid per claimant has increased
• disputes lodged with the Workers Compensation Commission (WCC) have slightly increased over the past two years.

SIRA intends to annually update the Workers Compensation System Performance Report, and is developing a discussion paper to consult stakeholders on how best to measure the customer experience of injured workers and employers.

Other issues considered at the October 2016 Board meeting included:

• The Board approved the key issues in the re-design of the CTP Scheme premium system. A key feature of the proposed new system is the establishment of a “risk equalisation mechanism” (REM). The REM is intended to ensure that very low and high risk CTP policies are equitably distributed across insurers, both to reduce opportunity for excessive insurer profits and achieve fair and affordable premiums for motorists.
• The Board also agreed to review the Medical Care and Injury Services levy at its next meeting. This levy is applied to CTP premiums to fund the Lifetime Care and Support Scheme and SIRA’s costs of regulating the CTP Scheme.
• It is anticipated the levy, which is expressed as a percentage of CTP premiums, will be decreased in response to recent premium increases.
• The Board approved the investment strategy for the workers compensation Insurers’ Guarantee Fund. This Fund was established to provide benefits for workers in cases where the insurer has been declared insolvent. It currently funds claims of several insolvent insurers that operated under the pre-1987 privately underwritten system.

Trevor Matthews

Chairperson, SIRA Board

Earlier this year, SIRA commenced a review of the CTP Scheme premium system in response to the recommendations of the Insurer Profit Review.  The premium system review has the aims of:

• Improving the affordability of premiums for vehicle owners.
• Reducing the opportunity for excessive profits for insurers.
• Increasing competition between insurers and encouraging new entrants.

The premium system review complements other initiatives to improve the fairness and affordability of the CTP Scheme, including the proposed reforms to CTP Scheme coverage and benefits, and the establishment of the CTP Fraud Taskforce.

At its meeting on 9 September 2016, the Board considered the key issues and options in the re-design of the CTP premium system, and agreed to convene a Board workshop to review actuarial modelling of the options to assess their impact on premium levels for different classes of driver and vehicle.

The Board also considered data on payments made by insurers to high-volume, low-risk customers such as motor dealers and fleet owners.  The Insurer Profit Review recommended insurers be required to report these costs to assist in determining whether a cap should be applied on these payments.

Other issues considered at the September Board meeting included;

• The Board considered the report of the Legislative Council Standing Committee on Law and Justice on its first biannual review of the CTP Scheme since SIRA was established.  It was noted most issues raised in the Committee’s report will be addressed in the proposed reforms to the CTP Scheme and the review of the CTP premium system.
• The Board reviewed the draft Workers Compensation Financial and Premium Supervision Discussion Paper.  The Discussion Paper seeks stakeholder comments on the proposed approach to premium setting for 2016/17 and proposed regulations for prudential standards for insurers. The Discussion Paper will be published on the SIRA website and submissions invited.

At its meeting on 10 August 2016, the Board was pleased to endorse the revised draft Guidelines for workplace return to work programs.  The Guidelines were originally published by WorkCover Authority in 2010 and required revision to reflect subsequent changes to the workers compensation legislation.

The revised draft Guidelines simplify and update requirements for training of workplace return to work coordinators and consultation on workplace return to work programs.  They also reflect a cultural shift towards promoting recovery at work and utilising more direct pathways to returning to employment.

The revised draft Guidelines will be issued for public consultation in September 2016 before they are finalised and approved.

Other issues considered at the August 2016 Board meeting included:

• An update on activities to address CTP Scheme claims integrity. SIRA has recently undertaken analysis on high frequency accident locations, and is currently working with insurers to improve the effectiveness of their fraud detection strategies.
• A summary of the consultation outcomes and non-confidential submissions on the proposed remaking of the Workers Compensation Regulation 2010 have been published on the SIRA website. The 2010 Regulation is subject to automatic repeal under generally applicable regulatory review requirements and the new 2016 Regulation will commence before 1 September 2016.

Trevor Matthews

Chairperson, SIRA Board

Note: The 2010 Workplace return to work programs guidelines has been superseded by the 2017 Workplace return to work programs guidelines.

At its meeting on 15 July 2016, the Board was pleased to endorse the draft SIRA Strategic Plan 2016-17, which articulates the SIRA purpose and mission and describes the planning framework and structure to support these.

The Plan has been designed to position SIRA as an innovative regulator, providing efficient, modern and connected services and aligns us to the Department of Finance, Services and Innovation outcomes of increasing customer satisfaction for individuals, groups and businesses.

The strategic focus and programs of work for 2016-17 cover claimant experiences and outcomes in relation to scheme design; data/digital innovation; insurer performance; and service provider performance. Underpinning the plan is a philosophy of efficient, evidence-based and outcomes focused regulation.

The Plan will shortly be published and made available on the SIRA website.

The SIRA Board was updated on developments on strategic options for the reform of the CTP Scheme. The Government has approved a hybrid no-fault defined benefit scheme that maintains common law for the more seriously injured.

The Board also noted progress by a recently established independent expert reference panel comprising Mr John Della Bosca, Discourse Consulting, and Ms Nancy Milne, Deputy Chair of the SIRA Board. The reference panel and technical working groups including relevant stakeholders and service providers will assist SIRA to design the new scheme and its processes in detail, and to provide advice to Government for the formulation of a Bill that will be tabled in Parliament.

The Board also noted an update on CTP insurance for point-to-point transport. The Government has announced that it will introduce an innovative new pricing system for taxis and ride-share services that will make premiums fairer and more affordable.

The CTP reform package will provide SIRA with the power to establish a new premium setting process for point-to-point vehicles which will ensure CTP insurance accurately reflects a motor vehicle’s risk and usage, as well as rewarding safe driving. Legislation has also been passed giving SIRA increased powers to collect necessary data from point-to-point transport providers to assist in setting usage-based premiums.

A website, http://greenslipreforms.nsw.gov.au/, has been launched to promote ongoing engagement with scheme stakeholders and the community.

Further to the successful completion of the first stage in implementing the workers compensation “file and write” premium system, the 2016/17 versions of the Market Practice and Premiums Guidelines and the Licensed Insurer Business Plan Guidelines were published in May/June 2016 and issued for a fixed period until March 2017.

In line with the staged approach to implementation committed to by SIRA, the Board noted the proposed approach for the next stage of stakeholder consultation on development of revised guidelines for 2017/18, and prudential standards for insurers.

Since the Board approved the draft Home Building Compensation Fund (HBCF) Premium Assessment - Objectives and Principles at its May 2016 meeting, SIRA has consulted with the Scheme Actuaries. At its 15 July meeting, the Board approved the next iteration of the Objectives and Principles.

The Board also noted the progress of proposals for the reform of the HBCF, and that the Objectives and Principles provide a transitional approach to premium assessment. A more detailed approach will be developed once the Government’s HBCF legislative reform program is in place. Further consultation with stakeholders in late July / August 2016 will inform development of this legislation.

Other issues considered at the July 2016 Board meeting included:

• The Board noted progress on development of a new operating model for a workers and home building compensation insurer supervision model. The model seeks to take into account insurer compliance and performance, monitoring culture and behavioural approach within insurer agencies.

Trevor Matthews

Chairperson, SIRA Board

The 6 June 2016 meeting of the SIRA Board marked the achievement of several milestones in establishing SIRA’s workers compensation regulatory functions.

The Nominal Insurer and specialised insurers filed their proposed premiums for 2016/17 with SIRA on 16 May 2016, as required by the Market Practice and Premium Determination Guidelines approved by the Board in late April 2016.

The Board noted SIRA’s assessment of the proposed filings for compliance with the Guidelines on 3 June 2016, and has advised the insurers that SIRA has no objections to the proposed premiums.

As required by the Guidelines, icare has proposed minimal changes to the Nominal Insurer’s premium formula and industry rates for 2015/16.  The Nominal Insurer’s 2016/17 industry premium rates will be published on icare’s website.

The Board was pleased to note the successful conclusion of the first stage in implementing the new “file and write” premium system.  Later this year, SIRA will commence consulting stakeholders on improvements to premium guidelines for 2017/18 and new prudential standards for insurers to ensure the ongoing viability of the NSW workers compensation system.

The Board has also endorsed SIRA’s Licensed Insurer Business Plan Guidelines, which will apply to the Nominal Insurer and specialised insurers.  The Board noted the changes to the Guidelines as a result of consultation with stakeholders, including aligning the SIRA and APRA deadlines for submission of business plans.

The Board noted the Guidelines require insurers’ business plans to specifically address their NSW workers compensation service delivery activities.  This is intended to minimise overlap with APRA’s Internal Capital Adequacy Assessment Process (ICAAP) requirements, which focus on the insurer capital and risk management controls.

In addition, the Board endorsed the commencement of a further round of stakeholder consultation on the proposed licensing framework for self-insurers.  The draft framework has been revised following the first round of consultation with self-insurers in late 2015.

Other issues considered at the June 2016 Board meeting included:

• The Board endorsed the draft Better Regulation Division Stakeholder Engagement Strategy, which applies to both SIRA and SafeWork NSW, and has been developed in consultation with key stakeholder groups. The Strategy:
  • highlights our commitment to genuine and effective stakeholder consultation.  It covers all SIRA’s stakeholders, from claimants, their families, through to insurance, medical and rehabilitation service providers, business groups and unions, and road safety and disability advocacy organisations.
  • outlines a range of methods SIRA will adopt for engaging with stakeholders based on the best practice guidelines issued by the International Association for Public Participation. The Board was pleased to note the Strategy includes the establishment of an independently chaired Injured Workers Feedback Panel for use as a sounding board when making decisions affecting injured workers.
• The Board also received confidential updates on the development of proposals for the reform of the CTP Scheme, improvements to the CTP premium system, and fairer premiums for point to point transport providers including taxi, hire car and rideshare services.
  • It is anticipated the Government will finalise these reforms in the coming months, with a view to implementing a new, fairer and affordable CTP Scheme in 2017.

Trevor Matthews

Chairperson, SIRA Board

At its meeting on 9 May 2016, the SIRA Board confirmed its approval of the Workers Compensation Market Practice and Premium Determination Guidelines for 2016/17 after considering changes arising from stakeholder consultation on the draft Guidelines.

The Guidelines set out principles against which the proposed 2016/17 premiums of the Nominal Insurer and specialised insurers will be assessed.  The Guidelines require the Nominal Insurer to retain all key features of the premiums formula set out in the 2015/16 Insurance Premiums Order to ensure stability in employer premiums and have now been published on SIRA’s website. The Minister has approved the commencement of Act and regulation amendments to facilitate the new “file and write” approach to setting premiums.

Under the new approach, insurers must submit their proposed premium filing for 2016/17 to SIRA by 16 May 2016. SIRA then has four weeks to assess insurer premium filings for compliance with the Guidelines.  It is anticipated the industry premium rates for 2016/17 will be published on the SIRA website in mid- June 2016.

The Board noted stakeholder consultation on the draft 2016/17 Guidelines identified a range of potential improvements to setting workers compensation premiums that will be considered in the development of Guidelines for 2017/18 premiums.

The Board also approved the 2016/17 employer contributions to the Workers Compensation Dust Diseases Fund proposed by icare, noting there was no change from 2015/16 contribution rates.

Other issues considered at the May 2016 Board meeting included:

• The Board approved changes to the CTP Scheme Premium Determination Guidelines to give effect to three recommendations of the Insurer Profit Review. The changes were developed in consultation with insurers and Scheme stakeholders. The changes require CTP insurers to provide more detailed justification of key assumptions in their premiums filings, with the objective of keeping premiums affordable by reducing the scope for excessive profits.
• The Board endorsed the publication of new Guidelines for claiming workers compensation benefits. The Guidelines are intended to ensure sound decision making by insurers, consistent with the principles of fairness, timeliness, open communication with injured workers, employers and service providers. The new Guidelines replace four existing Guidelines and incorporate the 2015 reforms to workers compensation benefits. They were developed in consultation with stakeholders to address the recommendation of the Legislative Council Standing Committee on Law and Justice that existing Guidelines should be simplified and consolidated.
• The Board was pleased to note the Minister’s announcement of additional support for injured workers to return to work, effective 29 April 2016. Workers who are unable to return to work with their pre-injury employer and need assistance in starting with a new employer, are eligible for up to $1000 to meet the costs of transport, child care, work clothing, training or equipment. Seriously injured workers on weekly benefits for longer than 78 weeks are eligible for up to $8000 in the education or training to assist their return to work. The new Guidelines for claiming workers compensation benefits include guidance on claiming for these new types of return to work assistance.
• The Board also received confidential briefings on the outcomes of stakeholder consultation of options for the reform of the CTP Scheme and options for CTP insurance premiums for point to point transport.

Trevor Matthews

Chairperson, SIRA Board

One of the principal objectives of SIRA is to promote the efficiency and viability of the insurance schemes established under the NSW workers compensation legislation.

Three distinct types of insurer provide insurance services under the NSW workers compensation scheme:

• Specialised insurers covering specific industry sectors including coal mines, horse racing, pharmacies, hospitality, local councils and the Catholic Church. Specialised insurers comprise about 5% of the NSW workers compensation market.
• Self-insurers or large companies that manage and fund the workers compensation claims of their own employees. There are currently over 50 self-insurers, including the NSW public sector insurer, the Treasury Managed Fund. Self-insurers cover about 22% of the NSW workers compensation market.
• By far the largest NSW insurer is the Nominal Insurer managed by Insurance and Care NSW (icare), which provides insurance services through contracted Scheme agents to the remaining 73% of the NSW workers compensation market.

At its meeting on 5 April 2016, the SIRA Board meeting received a comprehensive presentation from Vivek Bhatia, Chief Executive of icare, Nick Allsop, Chief Actuary and John Nagle, Executive General Manager Workers Insurance on the current financial position of the Nominal Insurer.

Mr Allsop advised that the preliminary results of the recent actuarial valuation indicated the impact of the Government 2015 benefits reforms was within expectations with an additional $800m being directed to enhanced benefits and services for seriously injured workers.

Mr Nagle advised it is anticipated there will be no significant changes to the premium formula and industry rates for 2016/17, but icare will continue to gradually eliminate cross-subsidies across industry sectors and strengthen incentives and support for employers to improve safety and return to work outcomes.

Mr Bhatia also briefed the Board on icare’s three–year strategy to transform the organisation into a world class, customer-focussed provider of insurance and care services. The Board was particularly interested in icare’s initiatives to improve customer service by simplifying claim procedures and developing a centralised online system for managing claims, policies and premiums.

Other issues considered at the April 2016 Board meeting included:

• The Board approved proposed improvements to claims handling and medical guidelines for CTP insurers to enhance the efficient delivery of care and support for injured motorists and to improve the detection and management of exaggerated and fraudulent claims.
• The new guidelines were developed in close consultation with insurers, and the legal and medical professions, and are expected to come into effect in June 2016.
• The Chief Executive sought the Board’s comment on the review of SIRA’s executive structure in line with Public Service Commission guidelines. The Board noted the review provides an opportunity to drive efficiencies and enhance SIRA’s performance in strategic functions common to the regulation of workers compensation and motor accidents insurance schemes, including data analytics, medical services, dispute resolution and compliance. It will also clarify the extent of SIRA’s involvement in the integrated delivery of SIRA, SafeWork and Fair Trading customer support and regulatory services as part of the Commerce Regulation Project.
• The Board noted the outcomes of the first meeting of the Taskforce established by the NSW Government to make recommendations on strategies to deter, detect and respond to unmeritorious and fraudulent CTP claims.
• Early outcomes of the Taskforce include the introduction of a CTP Fraud Hotline (1800 600 444).
• The Board was pleased to note the active involvement of stakeholder groups, legal and medical services regulators and the NSW Police in the Taskforce, and their commitment to zero tolerance for fraud in the NSW CTP Scheme.

Trevor Matthews

Chairperson, SIRA Board

The SIRA Board was pleased to welcome Victor Dominello, Minister for Innovation and Better Regulation to the Board’s meeting on 7 March 2016.

The Minister noted SIRA had a key role to play in achieving Government priorities to make NSW the easiest state in which to start a business, increase the proportion of digital transactions and improve customer satisfaction with Government services.

The Minister noted the advantages of digital transactions over paper-based transactions in improving the efficiency of Government service delivery and reducing costs and red tape for business and the community.

In addition, he noted digitisation enabled faster and more effective reporting and analysis of data, and the development of better and more refined data sets that would enhance Government policy development and evaluation.

The Minister urged the Board to make SIRA a “leading light” in implementing increased digitisation and improved use of data.

The Board strongly supports the Minister’s emphasis on improving SIRA’s data analysis and reporting capabilities, and noted there are massive opportunities to increase digitisation and reduce paperwork in statutory insurance schemes.

The Board will hold a planning workshop in early May 2016 to consider priorities and funding for strategies to drive digitisation and innovation in SIRA’s data systems in the development of SIRA’s 2016/17 business plan.

The Board also agreed that Board agenda papers on legislative reforms and policy proposals should include a section on the implications for data systems and opportunities for improving data systems to enhance future decision-making.

The Minister also briefed the Board on the Government’s plans to consult stakeholders on a range of options for reform of the CTP Scheme, and to publish the Report on the Independent Review of Insurer Profit in the CTP Scheme.

The Minister emphasised the Government’s determination to implement CTP Scheme reforms by the end of 2016 to lower Greenslip premiums, more efficiently manage minor severity claims and enable a greater focus on care and support for the seriously injured.

The CTP Scheme Reform Options Paper was subsequently issued for public comment on 11 March 2016, and is now available on the SIRA website.

The Minister also welcomed the Board’s support for the establishment of the CTP Scheme Fraud Taskforce to develop strategies to address the alarming rise in suspected fraudulent and exaggerated claims.

Other issues considered at the March 2016 Board meeting included:

• Anthony Lean provided a briefing on the impact on SIRA of the Commerce Regulation Project launched within the Department of Finance, Services and Innovation in February 2016.  The initial phase of this Project will examine opportunities for aligning the advisory services and workplace inspection programs of NSW Fair Trading, SafeWork NSW and SIRA, to improve customer service and reduce compliance costs for business.
• The Board approved the release of the Discussion Paper on the proposed new approach to developing premium rates for the workers compensation insurance system.  The Discussion Paper seeks comment on draft Guidelines against which SIRA will assess the fairness and affordability of the premiums proposed by icare and specialised insurers for 2016/17.
• The Board also approved the release for consultation of options to ensure fair and affordable premiums for taxis, hire-cars and ridesharing services such as UberX and GoCar.  The Discussion Paper on CTP Insurance for Point-to-Point Transport will be released for comment during March 2016.
• The Board considered further actuarial advice on options to adjust the Reference Base Rate (RBR) in the Greenslip premium formula.  The RBR determines the level of cross-subsidisation between good and high risk policies.  It was agreed it would be prudent to maintain the RBR at its current level, pending progress in initiatives to reduce premium costs including the CTP Scheme Reform Options Paper and CTP Scheme Fraud Taskforce.

Trevor Matthews

Chairperson, SIRA Board

One of SIRA’s key functions as the new regulator of NSW statutory insurance schemes is to develop and implement a new approach to setting premiums for workers compensation insurance.

Under the old approach, the former WorkCover Authority issued an annual Insurance Premium Order (IPO) which set out the premium calculation formula and the base premium rates for all NSW industry sectors.

The IPO for 2015/16 included significant reforms to premium calculation, including new discounts and rewards for improved claims and safety performance, and the removal of end-of-year premium adjustments based on claims experience.

Under the new approach to setting premiums for worker compensation insurance:

• SIRA will develop and issue Market Practice and Premiums Guidelines.
• The Guidelines will require insurers to submit proposed premiums and supporting information justifying the proposed premiums to SIRA.
• SIRA may reject the proposed premiums if they do not comply with the Guidelines.

At its February 2016 meeting the SIRA Board considered the proposed approach and timeframes for developing and implementing the new approach.  It was acknowledged that any significant changes to the way premiums are determined will require consultation with stakeholders and sufficient lead time to enable changes to be effectively communicated and implemented.

A Discussion Paper on the proposed Guidelines for 2016/17 will be issued to insurers and stakeholders for four weeks comment in March 2016, before the Guidelines are finalised and issued during April 2016.

The February 2016 SIRA Board meeting also considered the report of an investigation into the significant increase of legally represented minor severity claims in the CTP Scheme. This trend appears to be related to changes in claimant and service provider behaviour, rather than an increase in the incidence of accidents.

The Board noted the increase in the number and cost of these claims is placing upward pressure on Greenslip premiums.

SIRA is working with representatives from NSW Police, legal and medical services regulators and peak bodies and is developing strategies to respond to the causes of this claims trend.

Other issues considered by the February 2016 Board meeting included:

• The proposed process and timeframes for SIRA’s assessment of proposed Home Builders Compensation Fund (HBCF) insurance premiums for 2016/17, and the Government’s response to the HBCF Reforms Options Paper issued in December 2015.
• Actuarial advice on options for adjusting the Reference Base Rate (RBR) used in the calculation of CTP Scheme premiums.  The RBR determines the level of cross-subsidisation in the CTP Scheme and is intended to ensure the premiums for high-risk policies are affordable.  The Board requested further advice on how changes to the RBR would affect Greenslip premiums.

Trevor Matthews

Chairperson, SIRA Board

The calendar year schedule of Board Meetings generally commences in February.

The SIRA Board did not meet this month.

The governing Board of SIRA, the new independent regulator of NSW’s statutory insurance schemes, met on 7 December 2015. It was the first meeting of the SIRA Board since Minister Dominello appointed the inaugural members of the Board in November 2015.

At the meeting the Board developed its Charter and Code of Conduct. The Board’s Charter sets out its roles and responsibilities in setting the general policies and strategic direction of the SIRA, and reporting to the Minister on the performance of its activities.  The Code of Conduct sets out our commitment to performing our role with integrity and impartiality. Both the Charter and the Code of Conduct will be published on the SIRA website.

The Chief Executive provided the Board with a comprehensive briefing on progress in establishing the SIRA through the integration of relevant staff and resources of the former WorkCover and Motor Accidents authorities and NSW Fair Trading’s Home Building Compensation Fund secretariat.

The Board also reviewed progress in developing SIRA’s first annual Business Plan. The Plan will set out the timeframes for implementing the Government’s key priorities for promoting the efficiency and viability of state insurance schemes and the key indicators for measuring scheme performance and customer satisfaction.

The key Government priorities to be implemented through the Business Plan include:

• rolling out enhancements to benefits for injured workers, more effective return to work assistance for seriously injured workers;
• implementing a pricing and prudential framework for workers compensation insurers to ensure benefits and services for injured workers are fully funded by premiums that are risk-based, fair and affordable for employers;
• developing options for reforming the Home Building Compensation Fund to ensure consumers are protected from faulty or incomplete work on their homes, while minimising red tape for home builders.

Other issues considered by the Board at its December 2015 meeting include:

• approving of levies on Greenslip premiums for 2016/17 to fund SIRA’s regulatory activities in relation to the CTP scheme and medical and support services under the Lifetime Care and Support Scheme;
• the recommendations of the Independent Review of Insurer Profit in the CTP Scheme;
• improvements to CTP premium setting guidelines to ensure fair and risk-based premiums for large fleets and vehicles with conditional registration or unregistered vehicle permits;
• the progress in consultation with stakeholders on the eligibility criteria and licensing standards for workers compensation self-insurers, and injured workers’ access to legal advice during reviews of their work capacity.

The Board would like to acknowledge the effort of SIRA staff in effecting the smooth transition to the new organisational structure and progressing the implementation of the Government’s key priorities, while maintaining core regulatory and customer services.

Trevor Matthews

Chairperson, SIRA Board