Four insurers part of the NSW government's workplace compensation scheme have had their contracts extended, while two others have been added following a review sparked by allegations of collusion to deny workers' claims.
QBE insurance is one of four existing Claims Service Providers (CSPs) that will receive a new, 10-year contract in January, Finance Minister Damien Tudehope announced on Thursday.
A review of Insurance and Care NSW (icare) led by Robert McDougall KC followed allegations in July 2020 aired on the ABC's Four Corners that QBE and Corrective Services had sought to deny worker claims with the hope of forcing them back to work.
The McDougall review noted some accusations made about icare "could most kindly be described as a 'beat-up'".
"The same cannot be said of the second matter raised," the report noted, referring to the QBE incident.
Four Corners reported QBE allegedly being told by Corrective Services to "hit them in the pocket" in a bid to push people with psychological injuries back to work.
Mr McDougall noted the State Insurance Regulatory Authority (SIRA) had confirmed the practice did not appear to be systemic or widespread.
"It is to be hoped that nothing like this will occur again," the report noted.
QBE is among the four existing CSPs appointed to manage claims for the nominal insurer icare, along with Allianz, Employers Mutual Limited (EML) and GIO.
Technology firm DXC and claims management company Gallagher Bassett are two new firms joining the existing four.
The 10-year contracts come into effect in January however are subject to provider performance. Additional providers may join in the future.
The contracts are the next step in a major reset of the scheme that will improve its financial sustainability, give employers more choice and improve outcomes for injured workers, Mr Tudehope says.
"Appointing this mix of quality claims service providers builds new capability and capacity in the system and is a key step towards providing a more specialised response to the growing incidence of psychological injury," he said.
The claims model has four specialist providers offering tailored support to workers claiming psychological injury in recognition of mental ill-health now being the most diagnosed long-term condition in Australia, an icare spokesperson told AAP on Thursday.
"These Claims Service Providers are referred to as 'general providers with specialist capabilities' and these providers are EML, DXC, GB and Allianz," the spokesperson said.
"These providers will have dedicated teams to manage psychological claims."
QBE will not manage psychological claims.
Along with GIO, it is what icare calls a "generalist provider", delivering general claims and injury management services.
"Previous and current performance of all successful CSPs was considered in the procurement process along with other extensive criteria, including performance in other jurisdictions, compliance and innovation," the icare spokesperson said.
The appointment of a dedicated psychological claims provider was also being explored and icare was establishing an internal team to develop and trial new approaches to those claims that could be rolled out to the CSPs.
The NSW upper house standing committee on law and justice is holding a hearing into the state's workers' compensation scheme on Monday.
Representatives from multiple unions and professional alliances will give evidence, followed by SafeWork NSW directors and SIRA executives.
