WorkCover WA Chief Executive Officer, Mr Adrian Warner, today announced a significant reduction in compulsory workers’ compensation insurance premium rates.

Mr Warner said that on average the WorkCover WA recommended premium rates would decrease by 14.4%.

“The average WorkCover WA recommended rate will fall from 1.849% to 1.582% for 2008/09.”

This latest reduction in recommended premium rates follows last year’s decrease of 12.7% and a decrease of 8.6% in 2006-07.

The new rates will take effect from June 30 and because 40 percent of policies are renewed in May/June many Western Australian businesses will feel the benefit of the reduction immediately.

“The WorkCover WA recommended rates are a strong guide to insurance companies in setting premiums, and a useful tool for employers and their insurance brokers in negotiating the best deal.

“Nearly three out of four businesses are paying premiums at or within 5% of the recommended WorkCover WA rate and just under 80% within a range of 10%. This demonstrates that WA employers can be confident that the WorkCover WA rates are indicative of what they can expect to pay for the coming financial year.” Mr Warner said.

Recommended premium rates are divided across 480 separate industry classes and are calculated based on the claims experience and risks associated with the different industry types and overall performance of the scheme.

Mr Warner said that rates in 418 (or 87%) of classes will decrease, 33 (or 7%) will increase and 29 (or 6%) will remain unchanged.

“Over 330 industries will have a 10% or greater reduction in the WorkCover WA rate.

Yet, more than 80% of total workers’ compensation costs still relate to only 10% of claims, which means that even a small reduction in the number and duration of severe claims will make a big difference to the affordability and sustainability of the workers’ compensation scheme,” he said.

“WorkCover WA will continue to engage with key stakeholders to ensure that the early reporting and better management of injuries improve the return to work outcomes for injured workers, particularly the more seriously injured.”

The full schedule of rates is available on the WorkCover WA website at http://www.workcover.wa.gov.au/Publications+And+Forms/Rates+fees+and+payments/Premium+Rates.htm

WorkCover WA – 9388 5555