List of current self-insurers

Current self-insurers

Table 1 lists the 33 employers approved as self-insurers by WorkSafe. These self-insurers represent approximately 5% of the Victorian WorkCover scheme, based on remuneration.

* A self-insurer may choose one of WorkSafe's agents to manage its WorkCover insurance and workers' compensation claims.

Terms and conditions for self-insurers

The Self-insurer Terms and Conditions of Approval Order 2016 (the Order) specifies the terms and conditions of approval to which a self-insurer is subject. The Order is made under Part 8 of the Workplace Injury Rehabilitation and Compensation Act 2013.

WorkSafe may also impose additional terms and conditions on self-insurers if their performance or compliance is not up to standard. These terms and conditions may relate to claims management practices, health and safety obligations or financial matters.

WorkSafe's self-insurer compliance tier system

WorkSafe uses a tier system based on the compliance rate of self-insurers to encourage performance improvement. A self-insurer may move up or down tiers depending on its claims management performance and compliance. Other factors, such as health and safety or financial matters are not assessed as part of a claims management audit.

A self-insurer will remain on the same tier throughout its renewed term of approval. Its tier may change to reflect improvement or decline in performance following a claims management audit on the year prior to self-insurance renewal.

If performance declines, WorkSafe will work with the self-insurer to improve it.

The tier system operates using the following key processes.

• WorkSafe will allocate a tier to a self-insurer at the time of self-insurance renewal.
• The allocated tier depends on the results of the claims management audit conducted by WorkSafe in the year before the self-insurance renewal process (the third or fifth year of the approval term, whichever is applicable).
• WorkSafe uses the audit results to calculate a compliance rate, which will determine the self-insurer's allocated tier (as shown in Table 2).
• WorkSafe calculates a self-insurer's compliance rate as a percentage of the total number of criteria that met the audit requirements, against the total number of criteria tested across its audited claim files.

If a self-insurer's compliance rate is almost at tier 1 or tier 2, WorkSafe may apply a margin of 3% and assign the self-insurer to the higher tier. To apply the margin, WorkSafe will consider the:

• action required to rectify non-compliance
• overall performance under the measures of regulatory monitoring

If a compliance rate is less than 65% (tier 3), the self-insurer will be subject to additional performance monitoring and requirements.

A self-insurer's tier level will also determine the frequency of self-audits it needs to undertake in accordance with the Self-insurer self-audit program part II.

Consultation for self-insurance initial approval or renewal

As part of the consultation process before approving or renewing a self-insurer, WorkSafe will notify interested organisations of upcoming self-insurance applications.

Anybody with information relevant to an employer's approval as a self-insurer may make a submission to WorkSafe. For information about how to make a submission during the consultation process see External Guideline #13: Consultation for initial or renewal application for approval as a self-insurer.