iCare review brought forward as CEO quits


The chief executive and managing director of beleaguered NSW government-owned insurer iCare has quit amid reports of poor financial management at the company.

NSW Treasurer Dominic Perrottet confirmed on Monday night the resignation of John Nagle, who had held the top job since early 2018.

Mr Perrottet on Tuesday said that despite retaining faith in the iCare board, a statutory five-year review of the company's workers' compensation scheme would be brought forward and inquire into the board's conduct and culture.

The inquiry will be headed by former NSW Supreme Court judge Robert McDougall QC.

It comes after the NSW Labor opposition last week released a document stating iCare's workers' compensation scheme had reported a $2 billion net loss to March 31.

Its funding ratio - a key measure of financial sustainability - had fallen to 98 per cent, the undated document shows. The state-owned insurer aims to keep the scheme's funding ratio, or proportion of assets to liabilities, above 110 per cent.

The issue came to a head after ABC and Nine reported last week on poor performance and financial management of iCare, created out of the 2015 break-up of WorkCover.

The company last week insisted in a statement there was no risk of insolvency in its workers' compensation scheme and that conduct issues such as scheme agent incentives and so-called "doctor shopping" had already been addressed.

Mr Nagle said in a statement on Tuesday he was sad to leave.

A non-executive board director - incumbent NSW Labor president Mark Lennon - also resigned last week after being on iCare's board since inception.

But the Public Service Association on Tuesday said the entire iCare board should step down after a NSW parliamentary inquiry on Monday heard the company had sought to terminate compensation payments to some 17,000 workers.

It also heard Mr Nagle had been sanctioned by the iCare board last year for a conflict of interest involving his wife's position at the company.

"A fish rots from its head," PSA general secretary Stewart Little said in a statement.

NSW Opposition Leader Jodi McKay tweeted that Mr Perrottet had "allowed injured workers to be underpaid while executives wallow in lavish salaries, bonuses & dodgy contracts. Let today be a circuit-breaker".

She sought to censure Mr Perrottet in NSW parliament later on Tuesday, saying he "only cares about his own ambition to be premier" and that iCare was his "baby".

Ms McKay said Mr Perrottet had failed to take action on reports of iCare mismanagement despite repeated warnings and advice from the State Insurance Regulatory Authority.

Mr Perrottet said NSW had its lowest workers' compensation scheme premiums since 1987 and "positive feedback" on the scheme had increased.

The opposition's censure motion was ultimately rejected by 47 to 36 votes.

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