Page 146 - Be Reasonable – Do It My Way , Peter E. Daly AM, My Story

CHAPTER 13 - NORWICH WINTERTHUR INSURANCE AUSTRALIA LTD
introduction of what were known as ‘ loss paid retro schemes’ supported by stop loss reinsurance arrangements. As the Financial Review reported on Friday, 11 November 1983:
“a sophisticated form of workers compensation funding which is unfamiliar to the Department of Taxation and to insurance industry regulators has appeared in the Australian market in recent years. The underwriting schemes, known as loss paid retrospective plans, are on offer to only a small number of large companies with huge payrolls and with accident control and monitoring systems in operation. It is believed that only a small number of insurance companies are underwriting paid loss plans, but no company has been willing to of cially admit to the practice, due to a lack of knowledge regarding the regulatory acceptability...”
Our position in loss paid retro schemes, working through the international Brokers was one of the reasons we diversified into workers compensation claims management companies in Victoria and New South Wales and particularly how we came to establish Industrial Mutual Consortium (IMC).
Back in Head Office in the UK was the NW Group actuary Terry Clarke. I first met Terry when he was sent out to Aegis to review our reserving. What that really meant was he was looking for the hollow logs, where we had strengthened our reserves. Norwich needed the profit distributions at the time!
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