IAG update on NSW Workers Compensation Scheme
CGU has informed the NSW government insurer icare of its decision and will seek to withdraw from the NSW Workers Compensation scheme by 31 December 2017 when the current contract ends.
IAG Chief Executive Australian Business Division Ben Bessell said the company made the decision based on changes to the design and distribution of the new model, adding it was not commercially viable to continue as an agent in the future.
“We have valued our partnership with icare and have been proud to be an insurer for the employers and workers of NSW for the past 30 years. However, after careful consideration we have decided it is no longer viable for the business to act as an agent in the future model of the scheme.
“Our focus is on continuing to support employers and injured workers as well as our staff, to ensure there is a smooth transition,” Mr Bessell said.
Mr Bessell added that each state scheme is different and CGU will continue to have a strong workers compensation presence in other states and territories, and there are no plans to change this.
“We will continue to provide workers compensation insurance products to more than 100,000 businesses around Australia.”