❓ Ms Freeman questions WorkCover WA about the increase in Recommended Premium Rates for workers' compensation, specifically focusing on the decision to increase the contingency/profit margin and its impact on the premium rate. WorkCover WA confirms the increase was based on actuarial advice.
AnsweredQoN 1064Legislative Assembly
QuestionView source ↗
I refer to workers’ compensation payments and given the 9.9% increase in Recommended Premium Rates for 2009–2010 I ask:
(1) Did Workcover make a policy decision to increase the contingency/profit margin from 8% to 10%; and
(a) if yes, why?
(2) Is the contingency/profit margin the margin set for Insurers’ returns?
(3) Would the Recommended Premium Rate for 2009–2010 have increased if there had been no increase in contingency/profit margin; and
(a) if yes, by how much?
(4) How much would the Recommended Premium Rate for 2009–2010 be if there had been no increase in contingency/profit margin?
(5) Did Workcover Authority consider an actuarial report without an increase in contingency/profit margin?
(1) Did Workcover make a policy decision to increase the contingency/profit margin from 8% to 10%; and
(a) if yes, why?
(2) Is the contingency/profit margin the margin set for Insurers’ returns?
(3) Would the Recommended Premium Rate for 2009–2010 have increased if there had been no increase in contingency/profit margin; and
(a) if yes, by how much?
(4) How much would the Recommended Premium Rate for 2009–2010 be if there had been no increase in contingency/profit margin?
(5) Did Workcover Authority consider an actuarial report without an increase in contingency/profit margin?
AnswerView source ↗
Answered
11 August 2009
Responded by
Minister for Commerce
Response time
55 days
(1) Yes.
(1a) The decision to increase the contingency margin was made by the WorkCover WA Board, based on the recommendations of an actuarial review undertaken by the scheme actuary, PricewaterhouseCoopers Actuarial Pty Ltd.
(2) No. The contingency margin is one of a number of variables which must be considered in ensuring the financial viability of the workers' compensation scheme. It is related to the cost of raising the capital required to underwrite workers' compensation premiums.
(3) Yes.
(3a) Refer to question 4.
(4) If there had been no increase in the contingency margin the recommended premium rate would be 1.691% of total wages as opposed to 1.738%.
(5)WorkCover did not consider an actuarial report on the recommended premium rates for 2009-10 with an unadjusted contingency margin.
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(1a) The decision to increase the contingency margin was made by the WorkCover WA Board, based on the recommendations of an actuarial review undertaken by the scheme actuary, PricewaterhouseCoopers Actuarial Pty Ltd.
(2) No. The contingency margin is one of a number of variables which must be considered in ensuring the financial viability of the workers' compensation scheme. It is related to the cost of raising the capital required to underwrite workers' compensation premiums.
(3) Yes.
(3a) Refer to question 4.
(4) If there had been no increase in the contingency margin the recommended premium rate would be 1.691% of total wages as opposed to 1.738%.
(5)WorkCover did not consider an actuarial report on the recommended premium rates for 2009-10 with an unadjusted contingency margin.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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