"Comcare finished 2009–10 in a strong financial position with an operating surplus of $7.6 million."
"Revenue from workers’ compensation premiums increased from $207 million in 2008–09 to $213 million in 2009–10."
Comcare finished 2010–11 with an operating surplus of $3.2 million and total equity of $8.7 million. This result was mostly driven by savings of $5.5 million against budgeted administrative expenses.
Premium claims payments and liabilities increased significantly in 2010-11. Gross premium claims payments increased by $13.5 million (7 per cent) and claims liabilities by $237.8 million (19 per cent) compared to last year. Linked to this was a reduction in the Scheme’s funding ratio from 104 per cent to 91per cent at 30 June 2011. This ratio includes a risk margin to achieve 75 per cent probability of sufficiency of the claims provisions.
The increase in premium claims payments and liabilities are attributable to a range of factors, in particular the increase in psychological injury claims. These claims on average have a longer recovery period and higher costs compared to physical injury claims.
Comcare is implementing a range of measures under the Strategic Plan 2010–2015 to tackle the increasing complexity and cost of claims, particularly the upward trend of psychological injury claims.
In 2010-11, Comcare received $253.1 million from Commonwealth agencies and private sector organisations through a range of cost-recovery mechanisms—primarily workers’ compensation premiums and regulatory charges.
Revenue from workers’ compensation premiums was $221.4 million in 2010–11, representing a 4 per cent increase on the previous year. After a significant adjustment in regulatory charges in 2009–10 to recover a $5.6 million funding gap from previous years, regulatory charges in 2010–11 were reduced by 9 per cent to $29.9 million.
The Asbestos Related Claims (Management of Commonwealth Liabilities) Act 2005 (ARC Act) provides a special appropriation to Comcare to discharge common law liabilities for asbestos-related conditions and diseases. The Safety, Rehabilitation and Compensation Act 1988 (SRC Act) provides a special appropriation to Comcare to fund workers’ compensation and administration costs for injuries sustained prior to 1 July 1989.
Comcare carries provisions to cover future claims liabilities for workers’ compensation and common law asbestos-related disease claims. Comcare maintains a high level of liquidity to ensure sufficient funds are available to pay for claims. At 30 June 2011 Comcare held $211.0 million in cash and cash equivalents.
Comcare will continue to review the efficiency of its operations to ensure the pricing of its services reflect value for money and an appropriate allocation of resources to regulate the jurisdiction and the provision of efficient and effective claims management services.