Attitude of Insurance Council of Australia to recommendations 'disappointing'

26/10/99
Labour Relations Minister Cheryl Edwardes today said the attitude of the Insurance Council of Australia to the announcement by the Premium Rates Committee of a 10 per cent reduction in recommended premiums was disappointing.
Mrs Edwardes said the suggestion that the industry would ignore the recommendations of the committee raised questions as to whether there was a role for private insurance in a compulsory workers' compensation system.
"I intend to have the insurers' actions monitored by the Premium Rates Committee and WorkCover's premium rates dispute process to ascertain whether insurers are acting appropriately for small to medium employers who have good claims records, " she said.
Mrs Edwardes indicated it was her intention to refer the issue as a term of reference to the inquiry into insurance practices recommended by the Pearson Review.
"If private insurers are not prepared to act appropriately in the system, then consideration must be given to alternative models for underwriting," she said.
"The Premium Rates Committee is independent of Government and the insurers did not reject the increased premium last year of over 35 per cent, how can they now reject this 10 per cent reduction particularly given the significant changes the Government's legislation has achieved.
"Restoring balance to the workers' compensation system requires the co-operation of all parties, including the insurance industry which should be reminded the system is designed for the benefit of workers and employers."
Media contact: Carole Cowling 9421 7777