Last week Victorian companies with a CGU WorkCover policy received a letter advising that CGU will stop managing their workers compensation claims come 30 June 2020 – despite WorkSafe offering a 2 year extension to the existing contract.
The letter contained no advice about what will happen come 30 June 2021. While that detail is likely to come from WorkSafe, at this stage they aren’t providing any information publicly. Naturally, the lack of information is causing concern and confusion for the businesses affected.
What happens now?
Based on how these things have been handled in the past, we would expect that:
All CGU claims and policies will be transitioned to another agent in the scheme (Allianz, Xchanging, Gallagher Basset or EML). Some businesses may have received a letter from WorkSafe advising which agent will take over their claims portfolio and providing a timeline for transition – but many will have not.
Affected employers will have a new agent designated and are unlikely to be able to choose their agent.
Minimal changes to existing policies with other agents – Allianz, Xchanging, Gallagher Basset and EML.
A freeze on switching agents – for a period of time leading up to 30 June 2021 that will likely continue for at least three months.
If there is one thing that’s for sure – there will be disruption across the board as the other agents take over CGU’s policies (25% of all WorkCover policies). This is likely to affect all businesses. To minimise the impact on your business, we recommend:
taking the time now to ensure all claim files are reconciled and up to date.
prepared for delays and difficulties managing claims as the new agent takes over.
If you need advice or assistance we’re here to help – just call us on 03 9863 8408 or email email@example.com