Self-insurer responsibilities
A self-insurers responsibilities include:
- The direct ownership and management of workplace and workers compensation risks.
- The experience and outcomes for people with an injury.
- Workforce relationships.
- Meeting additional operational conditions.
Licence types
There are 2 types of self-insurer licence issued by SIRA:
- Single self-insurer licence, issued to employers with no wholly-owned subsidiaries of the company that are employers in NSW.
- Group self-insurer licence, issued to a holding company and all wholly-owned subsidiaries of the company that are employers in NSW.
Licence terms
A self-insurer or group self-insurer licence can be issued for up to 8 years and renewed.
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.
Eligibility
Self-insurer licence applicants must meet certain requirements to ensure they will conduct themselves in accordance with the legislation, be financially viable and maintain high standards of injury management and case management throughout the term of the licence.
Licensing requirements
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Conduct
Self-insurers must conduct themselves in accordance with legislation and demonstrate reporting of a standard acceptable to us.
A self-insurer 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.
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Claims management
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 legislative requirements.
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Financial ability
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.
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System efficiency
In assessing a self-insurer licence application, SIRA may also consider the general efficiency of the workers compensation system.
This assessment may consider whether granting the licence will more efficiently achieve the objectives of the workers compensation system under section 3 of the Workplace Injury Management and Workers Compensation Act 1998 and be of benefit to system stakeholders.
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Renewals
We grant licences for up to 8 years. Generally, new applicant licences are granted for a period of up to 3 years.
As your licence approaches expiry, you will need to reapply in accordance with the licensing requirements, no later than 4 months before the expiry of the current licence.
How to apply for a self-insurer licence
Contact our team
Email SelfSpecialisedInsurers@sira.nsw.gov.au for more information and to set up an initial meeting to discuss the process and intention to apply.
Apply
Complete a self-insurer application form and provide the information outlined in the 'requirements for a licence application' section of the self-insurer information requirements document.
Pay application fees
An application fee of $40,000 is payable at the time you lodge your application. The application fee for a group self-insurer licence is $45,000. The fee is non-refundable regardless of the outcome of your application.
For more information email SelfSpecialisedInsurers@sira.nsw.gov.au
NSW Workers Compensation Self-Insurers Association
The NSW Workers Compensation Self-Insurers Association (SIA) provides advice to prospective self-insurers and organises education forums about issues that affect self-insurers. The SIA also liaises with SIRA on behalf of self-insurers.
List of current licensed insurers
A list of current licensed insurers for workers compensation.
Self-insurer licence applications
Stakeholders are invited to submit feedback on pending licence applications.
Notifying SIRA about a significant matter
Self-insurers are required to notify SIRA of significant matters.
Review of self and specialised licensing framework
SIRA is currently reviewing and updating the self and specialised insurer licensing framework which will include reviewing and updating the below documents. Some content may be amended as a result of this review.
Applicants and insurers can contact SIRA by emailing SelfSpecialisedInsurers@sira.nsw.gov.au for clarification of specific requirements.
Self-insurer license forms
Updated 19 December 2024