Workers compensation monthly report
July 2019 report
Accessible version
System overview
Key workers compensation system statistics for the 12 months ending July 2019
- $258 billion of reported wages are safeguarded by the workers compensation scheme
- $3.6 billion in premiums were collected, representing 1.4% of reported NSW wages1
- $3.3 billion was paid out as costs for workers claims
- 100,314 claims were reported to SIRA
- 78,951 workers received weekly benefit payments
1 For the 2017/18 financial year
Effectiveness
System effectiveness in protecting workers and getting workers back to work and wellbeing
Reportable claims
9,135 were reported in July 2019
7,941 were reported in Jun 2019
8,216 were reported in July 2018
Claim types
Of the 9,135 reportable claims in July 2019, 93.0% (8,501) were related to physical injuries and 7.0% (634) were related to psychological injuries.
Claims by body locations
Head: 10.3%
Neck: 2.4%
Upper limbs: 34.4%
Trunk: 19.5%
Lower limbs: 19.8%
Also:
Psychological: 7.0%
Multiple locations: 2.8%
To be confirmed: 2.8%
Systemic locations: 1.1%
Effectiveness
Workers’ claims journey results at June 2019
Monthly average over the last 12 months
11,322 reports submittedA^
8,385 reportable claims ^
3,565 lost timeT^
A Records submitted includes all records received from insurers across NSW. This data excludes administration errors.
T Lost time is based on workers receiving weekly benefits.
^ Figure is based on a 12 month average.
Return to work
61.3% at 4 weeks*
75.2% at 13 weeks*
82.1% at 26-weeks*
Note: SIRA identified data quality issues with the accuracy and completeness of return to work data submitted by the Nominal Insurer (NI). The data appears to indicate a significant deterioration in the NI’s RTW performance. SIRA instructed the NI to improve the quality of the data. To address the data quality and potential performance concerns with the NI, SIRA carried out a data quality audit in December 2018 and commenced a Compliance and Performance Review in February 2019.
* Based on a rolling 12 month cohort, for further details see the Explanatory Note.
Efficiency & viability
Efficient system delivery, sustainability, and viability of the system for generations to come
Total claim payments made by insurers
In July 2019, the Nominal insurer made payments of more than $217 million, Government self-insurers (TMF) of over $62 million, self-insurers of over $18 million and specialised insurers of over $18 million.
Claim payment types
The breakdown of claim payment types in May 2019 is as follows:
- Weekly payments: 38.6%
- Medical payments: 29.5%
- Common law (WID): 14.2%
- Lump sum (S66 & S67) payments: 4.8%
- Rehabilitation payments: 4.7%
- Legal payments: 1.9%
- Investigation payments: 2.4%
- Other payments: 2.0%
- Death payments: 1.5%
- Commutation: 0.8%
Total claim payments made by insurers
In July 2019 $315 million dollars payed in claim payments.
In June 2019 $271 million dollars payed in claim payments.
An increase of 16.4% based on data provided by insurers at the end of July 2019.
Benefits paid to and for workers as a percentage of total claims expenditure
Of the total expenditure across the system in 2017/18, 45% was made on payments to claimants and 24% was spent to make payments for the claimants. Insurer expenses across the system was 31% of the total expenditure.
Note: The benefits paid to and for workers is calculated annually. Details of definitions can be found in the methodology and data section. Data sourced from the information insurers provide to SIRA as at the financial year 2017/18.
Customer experience & equity
Customers’ experience with the system is positive and equitable
Enquiries and complaints
SIRA received 2,355 enquiries in July 2019. There were 818 complaints received in the same period.
Note: Complaint data (which may include the name of an insurer) is derived from verbatim reports from customers. While SIRA does some data cleansing, the reporting is verbatim from customers and might occasionally reference an incorrect insurer and/or insurer type.
Disputes lodged
In July 2019, the dispute rate was 0.7%, with 97,412 active claims and 659 disputes lodged.
Note: Including data from the Workers Compensation Commission.
Jurisdiction | Distributive justice Average (mean) on a 5 point scale | Procedural justice Average (mean) on a 5 point scale | Informational justice Average (mean) on a 5 point | Interpersonal justice Average (mean) on a 5 point |
---|---|---|---|---|
New South Wales | 3.9 | 3.8 | 3.7 | 4.3 |
Australia | 3.9 | 3.8 | 3.7 | 4.3 |
Definitions of dimensions used to measure customers perception of equity and perceived justice:
- Distributive justice, relates to the fairness of their compensation.
- Informational justice, is about receiving accurate and timely information about the rationale for decisions.
- Interpersonal justice, relates to whether workers were treated with respect and sensitivity.
- Procedural justice, about the fairness of the procedures used to determine the outcomes.
Source: Safe Work Australia 2018 Return to Work Survey.
Affordability
Insurance affordability
This is the affordability of insurance is 1.4%, as a percentage of NSW wages for 2017/18.
NSW workers compensation insurer scorecard
Information about the performance of insurers operating within the workers compensation system
% share of reported wages FY 2017/18 | % share of total claims FY 2017/18 | % share of total payments made | % share of total active claims | % of injury notifications actioned within 7 days | % of Level 1 complaints to active claims | RTW rate 4 weeks | RTW rate 13 weeks | RTW rate 26 weeks | |
---|---|---|---|---|---|---|---|---|---|
Nominal Insurer | 74% | 67% | 68% | 66% | 94.6% | 0.14% | 57% | 72% | 80% |
Government self-insurer (TMF) | 13% | 16% | 20% | 19% | 98.5% | 0.04% | 72% | 84% | 88% |
Specialised Insurers | 6% | 8% | 6% | 7% | 92.3% | 0.03% | 72% | 84% | 85% |
Self insurers | 7% | 9% | 6% | 8% | 94.9% | 0.31% | 66% | 76% | 82% |
Note: Insurers reported this data to SIRA. Data is as at July 2019.
While reasonable care has been taken in preparing this document, the State Insurance Regulatory Authority (SIRA) makes no warranties of any kind about its accuracy, currency or suitability for any particular purpose. SIRA disclaims liability for any kind of loss or damages arising from, or in connection with, the use of any information in this document.
SIRA identified data quality issues with the accuracy and completeness of return to work data submitted by the Nominal Insurer (NI). The data appears to indicate a significant deterioration in the NI’s RTW performance. SIRA instructed the NI to improve the quality of the data. To address the data quality and potential performance concerns with the NI, SIRA carried out a data quality audit in December 2018 and commenced a Compliance and Performance Review in February 2019.
Additional scheme performance measures
Information about the performance of insurers operating within the workers compensation system
Cost to the scheme for weekly benefits paid per month
In July 2019, the total amount of weekly benefit payments paid by insurer type was:
- $81 million by the Nominal insurer
- $28 million by the Government self-insurer (TMF)
- $6 million by specialised insurers
- $6 million by self-insurers
Note: to ensure consistency across the time series the data excludes Section 39 claimants that exited the system up to June 2018.
Number of workers receiving weekly benefits per month
In July 2019, the number of workers receiving weekly benefits by insurer type was:
- 20,064 by the Nominal insurer
- 7,186 by the Government self-insurer (TMF)
- 1,474 by specialised insurers
- 1,980 by self insurers
Note: The data is a distinct number of workers receiving weekly benefits and to ensure consistency across the time series, the data excludes Section 39 claimants that exited the that exited the system up to June 2018.
RTW including medical only claimants rate
In July 2019, the 4 week RTW rate was:
- 74.82% for the Nominal insurer
- 80.31% for the Government self-insurer (TMF)
- 84.09% for specialised insurers
- 85.73% for self insurers
- 77.42% for the system average
In July 2019, the 13 week RTW rate was:
- 83.66% for the Nominal insurer
- 88.16% for the Government self-insurer (TMF)
- 89.34% for specialised insurers
- 89.07% for self insurers
- 85.33% for the system average
In July 2019, the 26 week RTW rate was:
- 88.27% for the Nominal insurer
- 91.13% for the Government self-insurer (TMF)
- 90.15% for specialised insurers
- 90.74% for self insurers
- 89.11% for the system average
Average duration of weekly benefits paid in the first 6 months
In December 2018, the average was:
- 29 days for the Nominal insurer
- 29 days for the Government self-insurer (TMF)
- 18 days for specialised insurers
- 20 days for self insurers
Note: This measure uses work hours lost and injury quarter to calculate average days, it is reported to December 2018 to allow for claim data development.
Reportable claims development
Total reportable claims by financial year at 11 development periods
78,289 in 2015/16
77,828 in 2016/17
79,715 in 2017/18
84,314 in 2018/19
Claim payments development
Total claim payments by financial year at 11 development periods
$418 million in 2015/16
$479 million in 2016/17
$502 million in 2017/18
$533 million in 2018/19
Download the methodology and summary data tables (Excel worksheet) used to support this report. If you have trouble accessing content within these reports, please send an email to [email protected] or call us on 13 10 50.