Purpose of self-insurance
Self-insurance allows eligible employers to manage the costs and risks of their workers’ compensation claims.
Employers can become self-insurers for:
- the workers they employ
- workers their eligible subsidiaries employ (in the case of a holding company).
Just like insurance through a WorkSafe agent, self-insurance should achieve the following.
- Improve injury prevention and rehabilitation.
- Make sure workers receive fair treatment.
- Contribute to improvement of health and safety and return to work outcomes.
- Promote best practice across the scheme.
Benefits of self -insurance for eligible employers
- Having more oversight and control of related costs.
- Working with WorkSafe to encourage occupational health and safety, claims management, and return to work (RTW) best practice across industries.
- Receiving tailored performance reports to assist in making evidence-based improvements.
- Implementing early intervention practices to maximise treatment and RTW outcomes.
- Receiving support from a portfolio manager with a strong understanding of the self-insurer.
Eligibility to apply for self-insurance
Before applying for self-insurance, employers must first request and complete an eligibility assessment. If WorkSafe assesses an employer to be eligible, they can then apply to become a self-insurer.
WorkSafe’s eligibility assessment determines if an employer meets the following conditions.
The employer must:
- be a body corporate
- not be a subsidiary of another body corporate
- be able to meet its current and future claim liabilities.
These conditions are in line with the Workplace Injury and Rehabilitation Compensation Act 2013 (WIRC Act).
Applying for self-insurance
Employers can apply to become a self-insurer if WorkSafe has found that they:
- are eligible to apply
- will soon no longer be an eligible subsidiary of an existing self-insurer and will become an ultimate holding company.
To make an application, employers must:
- submit the application documentation
- pay the application fee.
Expectations of self-insurers
WorkSafe monitors self-insurer's performance to make sure they are meeting expectations and requirements.
Workers employed by self-insurers have the same rights and entitlements as other workers.
Self-insurers must comply with the WIRC Act and regulations.
Self-insurance guidelines
WorkSafe created the following guidelines so that prospective and approved self-insurers:
- know their role and responsibilities
- comply with relevant legislation, processes and procedures.
Guidelines are available on WorkSafe’s website or on request. To request a guideline, email [email protected].
Eligibility and initial application
- Commencement as a self-insurer
- Employer commencement as a self-insurer.
- New holding company commencement as a self-insurer.
- Claims management policies for self-insurers.
- Operation as a self-insurer
- Self-insurance contributions guideline.
- Actuarial assessment of self-insurer liability.
- Notification of strategically significant matters.
- Resources for managing claims.
- Self-insurer acquisition of another self-insurer.
- Self-insurer acquisition of registered employer.
- Approvals, extensions and renewals
- Application for approval of a person to act as an agent of a self-insurer.
- Extension of approval as a self-insurer.
- Review of a self-insurer’s approval.
- Approval of a new holding company as a self-insurer.
- Assessment of application for renewal of approval as a self-insurer.
- Consultation on new and renewal self-insurance applications guideline.
- Performance monitoring
- Self-insurer self-audit program 2024-2025 – Part I.
- Self-insurer self-audit program 2024-2025 – Part II.
- Self-insurance performance system.
- Self-insurance oversight framework for claims management.
- Definitions of business rules for incidence of injury and cost of claims analysis.
- Cessation
- Requirements for a ceased self-insurer.
More information
WorkSafe Advisory
WorkSafe's advisory service is available between 7:30am and 6:30pm Monday to Friday. If you need more support, you can also contact WorkSafe using the Translating and Interpreting Service (TIS National) or the National Relay Service.
