An agency's contribution to the RiskCover Fund is assessed using the following information:
- the annual renewal Self Insurance Risk Declaration,
- the agency’s claims experience, and
- trends determined by an independent actuary.
The RiskCover Fund contribution-setting process achieves a balance between the following:
- equitable fund contributions for members,
- minimal cross-subsidisation between members,
- protection for members against major losses*, and
- incentives for risk management.
* Where identified insurable risks are not covered under the RiskCover Fund, special arrangements can be made in most circumstances.
A major benefit of the RiskCover Fund is that a no profit component is built into the RiskCover Fund contribution, unlike private insurance companies.
Our objective is for the RiskCover Fund to remain balanced over time by matching contributions to claims expenditure.
A decision has been taken to include a prudential surplus equivalent to the Australian Prudential Regulation Authority’s (APRA) prudential margin requirements for General Insurers.
The ultimate goal is to help agencies minimise their contributions through:
- the prevention of incidents and
- the efficient management of those incidents which do occur.
Contributions need to be sufficient to:
- meet the possible court awards of the future, and
- to purchase reinsurance for additional financial protection against those potentially catastrophic events.
For further information, please contact RiskCover.