Self-insurers

Self-insurers must conduct themselves in accordance with legislation and demonstrate reporting of a standard acceptable to us.

As a self-insurer, you must:

• undertake risk management practices to support your strategic direction and submit a business plan reporting such practices and direction
• secure workplace safety by complying with the Work Health and Safety Act 2011
• provide accurate business intelligence reporting within our time frames and to our standards. This includes reporting claims data, changes to ownership and corporate structure, and notification of significant matters.

Self-insurers must perform claims management in accordance with legislation and demonstrate injury and claims management of a standard acceptable to us.

You must invest in the appropriate resources, develop expert capabilities, and manage claims to meet our claims management principles and standards.

Outsourcing claims management is permitted however it does not remove your responsibility to meet our expectations.

You are required to undertake a claims management self-audit and lodge the report with us. Further information is available in the the Insurer claims management audit guide.

Other resources

• Insurer claims management audit manual
• Self-audit tool
• Insurer audit remediation plan process and template
• Insurer guidance  - remediation plans

Self-insurers must demonstrate ongoing financial ability and strength to meet their workers compensation obligations for licence continuity.

They need to have sufficient resources to cover their past and future financial obligations, and be of sufficient size to provide the necessary security and obtain and maintain reinsurance policy to mitigate the risk of insolvency.

Self-insurers must prepare and lodge a copy of their annual report (including audited financial statements) each financial year.

Security

Unless you are an exempt employer (such as a government employer), you must provide financial security to ensure your workers are covered and other employers in NSW are not forced to meet the cost of claims should you be unable to meet workers compensation liabilities under your licence.

Security is determined by referencing the annual actuarial report provided to SIRA in accordance with our self-insurer requirements.

Reinsurance

You must obtain and maintain unlimited reinsurance cover to restrict liabilities to a maximum amount for any one event.

We will regularly monitor and assess self-insurer performance against our standards for conduct, claims management and financial ability.

We employ a tiered supervisory model to formally acknowledge expected performance and define our risk-based regulatory oversight of insurers.

We will provide formal performance assessment and tier placement on an annual basis and as required.

Should you no longer hold a self-insurer licence, you will still be held responsible for the management of the tail of claims incurred while licensed.

We will continue to hold security until we're satisfied that all claims have been discharged or adequately provided for.

We grant licences for up to eight years.

Generally, new applicant licences are granted for a period of up to three years.

After your licence expires you will need to reapply in accordance with the licensing requirements.