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.

• ACT has implemented a scheme for contracted out of home care providers, utilising the recommendation of the Phase 2 Final report. The terms of the scheme will be reviewed each 12 months, in consultation with stakeholders.
• Contact: CBRStepsUp@act.gov.au

• Northern Territory has confirmed it will not establish a scheme due to the small number of service providers operating.

• NSW is considering the Phase 2 Final Report and design elements of a potential long-term solution, including undertaking costings and planning for sector consultations. NSW has a short-term scheme in place. Information about the scheme can be accessed here.
• Contact: ngoindemnityscheme@facs.nsw.gov.au

• Queensland is considering recommendations of Finity’s Phase 2 Final Report and design of a potential long-term state-based solution. This includes further policy, costing and modelling work as well as planning for consultation with the sector. Queensland has a short-term indemnity scheme in place.
• Contact: Helen.Missen@cyjma.qld.gov.au

• South Australia
• Contact: SAFAInsurance@sa.gov.au

• Tasmania
• Contact: Brett.Noble@dpac.tas.gov.au

• Victoria has an established insurance program which will remain in place.
• Contact: Aubrey.Mair@dffh.vic.gov.au

Please contact your relevant jurisdiction for the latest advice and information.

The IJWG established a Non-Government Advisory Group (NGAG) to support the work of the IJWG in designing and delivering a long-term response. The NGAG met regularly from its establishment in June 2022 until it was no longer required in August 2023. It was comprised of NGO service provider and insurance sector representatives from across the country, as well as representatives from the IJWG.

The NGAG’s key role was to:

• provide expert input to the IJWG on key aspects of the project to identify a sustainable long-term solution to the issue of access to PSA insurance
• represent the interests of non-government stakeholders, including NGO service providers and the insurance sector, in the development and implementation of a solution; and
• assist in ensuring any solution identified is fit for purpose.

More information on the NGAG and its role is contained in the group’s terms of reference.

We are grateful to the NGAG members for their contribution.

The IJWG meets bi-monthly and is chaired by the NSW Department of Communities and Justice. Its membership is comprised of departmental representatives of line agencies responsible for OOHC and/or youth homelessness services from every state and territory, as well as representatives from the Commonwealth. The IJWG terms of reference can be accessed here.

Questions about the IJWG can be forwarded to the IJWG Secretariat at ngoindemnityscheme@dcj.nsw.gov.au.

Government-funded NGOs providing out-of-home care (OOHC) and youth homelessness services are having difficulty obtaining insurance for physical and sexual abuse (PSA) claims.

Service providers have raised serious concerns about exposure to uninsured abuse claims and some have advised they are considering exiting service provision. The exit of providers from the market will have a significant impact on essential service delivery for vulnerable children and young people, and will likely lead to market failure. This is a national issue impacting providers across the country.

The purpose of the IJWG is to identify feasible long-term options for a response to this issue. Its establishment was endorsed by Community Services Ministers (CSM) in August 2021. CSM is also the reporting body for the IJWG.

The IJWG is aware this issue may also impact some National Disability Insurance Scheme (NDIS) funded providers of accommodation outside the family home for children and young people and will consider the needs of these providers in the design of potential long-term solutions.