The Contribution Cycle represents the yearlong activity icare self insurance and its service providers undertake to ensure each agency has full coverage of their insurable risk.
The cycle is divided into 4 phases:
This represents the Declaration Process, where agencies provide icare self insurance and its service providers with operational information about their agency to inform the Calculation phase. This activity occurs between October and December, prior to the commencement of the financial year.
The Calculation phase is where the Actuaries take all of the inputs from the Information Collection phase and model what they believe claims will cost in the upcoming financial year. They also calculate two more things: what each agency needs to contribute to cover those costs, and how much funding budget agencies should receive to cover those costs.
This information is provided to NSW Treasury to inform the setting of the State Budget. This activity occurs between January and March, prior to the commencement of the financial year.
Invoice and Receipting
The Invoice and Receipting phase represents the point where icare self insurance and their Claims Management Service Providers work together to draw up the invoices for each agency. The invoices represent the contribution agencies are due to pay for their insurable risk in the coming financial year. These invoices are sent out to agencies to commence cover at the beginning of the next financial year.
This activity occurs between April and June prior to the commencement of the financial year.
This phase is the period where icare self insurance’s Claims Management Service Providers go out to agencies and discuss how their individual contributions were calculated and the individual aspects that contributed to their payable amount. These meetings are designed to inform the executive team within an agency to either highlight strong performance or target areas that could be improved upon.
This activity occurs between July and September of the financial year that the contribution covers.