The NSW Treasury Operational Expenditure Review: Insurance and Care NSW (icare) report was conducted at the direction of the Minister for Work Health and Safety, Sophie Cotsis. The review aims to assist icare to achieve a permanent reduction of five per cent in its net cost of service from 2024-25.
NSW Treasury made 14 findings as part of the review. These findings provide a roadmap to improve transparency over icare’s expenditure, hold icare accountable for its statutory objectives, and improve government oversight of performance and expenditure across the State’s insurance and care system.
Key findings of the review are that:
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on balance, icare appears to operate at levels of efficiency and cost-effectiveness that are broadly comparable to those in similar commercial and public sector insurers across Australia
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icare is addressing a difficult legacy of accountability, governance and culture, and investing in digital transformation. The complexity, scale, cost and pace of this investment will require proactive management to reduce duplication and deliver expected benefits
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there is a need for greater clarity and continuity in measuring icare’s contribution to system performance and impact on the financial sustainability of its insurance and care schemes.
The review focused on icare’s controllable business costs to deliver insurance and care schemes on behalf of the community and government.
The review also highlighted opportunities for NSW Treasury, icare and the State Insurance Regulatory Authority to work together on a joined-up approach that promotes greater accountability for system performance, including value-for-money outcomes.
