NGO physical and sexual abuse insurance: inter-jurisdictional working group (IJWG)

The Interjurisdictional Working Group (IJWG) engaged Finity Consulting (Finity) to provide advice on the lack of available physical and sexual (PSA) insurance for out-of-home care (OOHC) and youth homelessness providers.

Informed by broad stakeholder consultation, Finity’s advice covered:

• potential long-term solutions to the lack of available PSA insurance, recommending state and territory governments provide insurance or indemnity to OOHC and youth homelessness service providers; and
• design and implementation recommendations for state and territory indemnity or insurance schemes for PSA claims.

This advice was provided to the IJWG in two reports delivered in September 2022 and February 2023. A copy of each report can be found below.

• NGO Insurance for PSA Claims: Phase 1 Final Report
• NGO Insurance for PSA Claims: Phase 2 Final Report

Phase 2 Final Report

The recommended design principles in the Finity Phase 2 Final Report cover the components required to implement an indemnity or insurance scheme, including eligibility requirements, scope and limits of cover, claim deductibles and pricing structures.

While recommending national consistency across these components, the report acknowledges flexibility is required to respond to the unique settings and requirements of each state and territory.

The report provides valuable advice and analysis, and it may be used as a guide by states and territories that are designing and implementing an insurance or indemnity scheme. The report does not bind states or territories to develop a PSA insurance or indemnity scheme.

Long Term Scheme Implementation

The IJWG is continuing to collaborate and work towards achieving national consistency, where possible, on the design of indemnity or insurance schemes in jurisdictions where they are established.

Each jurisdiction is responsible for the design and implementation of any long-term PSA insurance or indemnity solution. Jurisdictions will consider their unique circumstances, including their service system and current government insurance arrangements.

Implementation of any state or territory-based solution will be subject to the government and budgetary processes of the respective state or territory.

Individual jurisdictions will keep their stakeholders informed of the status of work to develop potential state or territory-based solutions, as well as approaches to manage the PSA insurance issue in the short-term. Relevant contacts and additional jurisdictional information can be accessed here.

The IJWG’s Terms of Reference are being reviewed to reflect the status of work and its refreshed direction to support achieving national consistency in the design of insurance and indemnity schemes where possible.