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Mercer Marsh Benefits

June 2022: People Risk Market Updates

A monthly update of regulation, industry or market changes to the people risk landscape. 

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06/06/2022

1. Remember to promote your corporate health plan before July 1

Australians who turn 31 in the next financial year and new immigrants must have appropriate health insurance to avoid Lifetime Health Cover (LHC) loading. In addition, Australian taxpayers earning above income thresholds set by the ATO need to hold compliant private hospital cover for self and dependents for the duration of the financial year to avoid the Medicare Levy Surcharge

Now’s the time to remind your people of the importance of taking out this cover and to promote your corporate private health scheme if your organisations has one in place.

Please contact your MMB Account Manager or Barbara Andric for further details.

2. iCare released their Loss Prevention and Recovery (LPR) 2022/23 Rates

Large employers that pay for WorkCover coverage in NSW will be impacted by the increase in premiums. MMB had initially anticipated an increase of 5% but on the back of NSW government rate increase, it will now be contained at 2.83% in both LPR model options. This change will take effect from 30 June 2022. If you have any queries or concerns on how this will impact your premium cost please contact your MMB representative for or reach out to Felipe Jimenez for further details.

3. WA WorkCover Premium Rates Increase

Policyholders in Western Australia who are set to renew their worker's compensation insurance from 1st July will see a 6.9% increase in their premiums. Key drivers for this increase are rising claim numbers and claim costs. This change has the possibility to increase premiums for Employers with under-performing claims over the last 5 policy periods. If your loss ratio is underperforming, please contact our team for more information and preliminary forecasts on the impact on your premiums in the future. Contact Felipe Jimenez for further details. 

“Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”