CGU will be pulling out of the reformed NSW workers compensation scheme only recently set up by icare.
CGU is currently one of the five Scheme Agents providing policy and claims management services to businesses and injured workers under the NSW workers compensation scheme.
Early this week, icare revealed a new self-service portal for new businesses and said that it would be taking over responsibility for processing workers compensation policies, premiums and renewals – a function currently performed by scheme agents.
This recent decision means that CGU will not be part of the Scheme Agent selection process icare is currently conducting.
“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,” said Ben Bessell, IAG Chief Executive Australian Business Division.
icare Group Executive Workers Insurance John Nagle said that icare will be there for CGU customers “every step of the way”.
“The announcement today will see no immediate change for existing customers and we will keep them
fully informed as we make arrangements to transfer their policies and claims to other service providers,” he added.
“Noting that policy and billing services were already transitioning from scheme agents to icare in the
coming months, we anticipate today’s announcement to have minimal impact for employers. For injured
participants we will work with our ongoing partners to ensure a smooth transition to remaining service
In thanking CGU as a valued scheme agent and partner, Nagel said: “We understand their commercial and operational reasoning in their decision to not continue in the selection process. We will continue to work with them over the coming months and in July begin transitioning employer policies and workers claims to icare’s ongoing service providers.”
Bessell notes that CGU will continue to have a workers compensation presence in other states and territories.
CGU’s current arrangement with icare ends 31 December 2017.
Meanwhile, NIBA has been assured that the role of brokers is respected in the new system, and brokers will be able to continue to meet workers compensation needs for their clients on the new platform.