Docstoc

Insurance Commission of Western Australia

Document Sample
Insurance Commission of Western Australia Powered By Docstoc
					                        :11lIIIIIIII1JltIIII1

                                                S




Insurance Commission
 of Western Australia
TABLE OF CONTENTS


VISION, MISSION AND CORE VALUES                              5

STATEMENT OF COMPLIANCE TO THE MINISTER                      6

CONTACT DETAILS                                              7


1.0   OVERVIEW                                               8

1.1   EXECUTIVE SUMMARY                                      8

1.1.1 Chairman’s Report                                      8

1.1.2 Managing Director’s Report                             11

1.1.3 Significant Events                                     13

1.1.4 Financial Overview – Insurance Commission of Western
      Australia (Consolidated)                               14

1.2   OPERATIONAL STRUCTURE                                  16

1.2.1 History                                                16

1.2.2 About the Insurance Commission                         16

1.2.3 Responsible Minister                                   16

1.2.4 Enabling Legislation                                   17

1.2.5 Administering Legislation                              17

1.2.6 Relationship with Government of Western Australia      17

1.2.7 Funds                                                  17

1.2.8 Organisational Structure                               18

1.2.9 Board of Commissioners                                 20

1.2.10 Executive Committee                                   24

1.3   PERFORMANCE MANAGEMENT FRAMEWORK                       28

1.3.1 Outcome Based Management Framework                     28

1.3.2 Changes to Outcome Based Management Framework          28


                                                                  1
1.3.3 Shared Responsibilities With Other Agencies       28


2.0   AGENCY PERFORMANCE                                29

2.1   FINANCIAL BUDGETS – ACTUAL PERFORMANCE
      COMPARED TO BUDGET FOR THE INSURANCE COMMISSION
      (NOT CONSOLIDATED)                                29

2.2   KEY PERFORMANCE INDICATORS SUMMARY –
      ACTUAL PERFORMANCE COMPARED TO BUDGET             29

2.3   MOTOR VEHICLE THIRD PARTY (PERSONAL INJURY)
      INSURANCE                                         30

2.4   RISKCOVER                                         36

2.5   OTHER FUNDS AND BUSINESSES MANAGED BY THE
      RISKCOVER DIVISION                                43

2.6   SPECIAL INVESTIGATIONS                            44

2.7   INVESTMENTS                                       46

2.8   COMMUNITY FOCUS                                   53

2.8.1 Road Safety Partnerships                          53

2.8.2 Medical Research Into Mesothelioma                55


3.0   SIGNIFICANT ISSUES IMPACTING THE AGENCY           55

3.1   CHANGES IN WRITTEN LAW                            55

3.2   ENSURING OUR FUTURE - EMPLOYEE ATTRACTION
      AND RETENTION                                     55

3.3   MOTOR VEHICLE PERSONAL INJURY CLAIM TRENDS        56

3.4   RISKCOVER RISK MANAGEMENT AND CLAIM TRENDS        57

3.5   BELL RECOVERY ACTION                              57


4.0   DISCLOSURES AND LEGAL COMPLIANCE                  58

4.1   FINANCIAL STATEMENTS                              58

4.2   KEY PERFORMANCE INDICATORS                        58


                                                             2
4.3   MINISTERIAL DIRECTIVES                                      58

4.4   OTHER FINANCIAL DISCLOSURES                                 58

4.4.1 Pricing Policies of Services Provided                       58

4.4.2 Capital Works                                               59

4.4.3 Employment and Industrial Relations                         60

4.4.4 Financial Administration                                    62

4.4.5 Independent Professional Advice                             62

4.4.6 Internal Audit                                              62

4.5   GOVERNANCE DISCLOSURES                                      63

4.5.1 Disclosure of Interest                                      63

4.5.2 Shares Held by Senior Officers                              63

4.6   OTHER LEGAL REQUIREMENTS                                    63

4.6.1 Advertising – Statement of Expenditure                      63

4.6.2 Disability Access and Inclusion Plan Outcomes               64

4.6.3 Compliance with Public Sector Standards and Ethical Codes   65

4.6.4 Recordkeeping Plans                                         66

4.7   GOVERNMENT POLICY REQUIREMENTS                              67

4.7.1 Corruption Prevention                                       67

4.7.2 Occupational Safety and Health (OSH)                        68

4.7.3 Substantive Equality                                        71

4.7.4 Sustainability                                              71


APPENDIX                                                          73

FINANCIAL STATEMENTS                                              75

PERFORMANCE INDICATORS                                            183



                                                                        3
GLOSSARY                                                                            204

INDEX                                                                               209




Please note that in this Annual Report:

References to the year 2009 mean the 2008-2009 financial year ended 30 June 2009.
References to the year 2008 mean the 2007-2008 financial year ended 30 June 2008.
References to the year 2007 mean the 2006-2007 financial year ended 30 June 2007.


                                                                                          4
VISION, MISSION AND CORE VALUES

OUR VISION

Recognised by the community as the leader in the responsible management of risk
and the delivery of equitable compensation schemes.

MISSION

To excel in the delivery of high-quality insurance and risk management services,
specifically:

      x   provide insurance for motor vehicle personal injury and industrial diseases
          compensation;
      x   manage and administer self-insurance and risk management services on
          behalf of Western Australian public authorities and eligible community
          groups; and
      x   provide advice to government on matters relating to insurance and risk
          management,

in accordance with the Insurance Commission of Western Australia Act 1986.

CORE VALUES

In everything we do our Core Values are:

      x   Simplicity;
      x   Teamwork;
      x   Accountability;
      x   Integrity and Openness; and
      x   Respect and Compassion.




                                                                                    5
STATEMENT OF COMPLIANCE TO THE MINISTER

To the Hon. Troy Buswell MLA
Treasurer

In accordance with Section 63 of the Financial Management Act 2006, we hereby
submit for your information and presentation to Parliament, the Annual Report of the
Insurance Commission of Western Australia for the financial year ended 30 June
2009.

The Annual Report has been prepared in accordance with the provisions of the
Financial Management Act 2006 and the Insurance Commission of Western
Australia Act 1986.




Michael E Wright
Chairman
1 September 2009




Vic Evans
Managing Director
1 September 2009


In accordance with a resolution of the Board of Commissioners of the Insurance
Commission of Western Australia, passed on 1 September 2009.
CONTACT DETAILS

Insurance Commission of Western Australia

Office Location

Level 13
The Forrest Centre
221 St George’s Terrace
PERTH WA 6000

Telephone

(+61) 8 9264 3333
1800 643 338 (freecall outside Perth)

Email

customer@icwa.wa.gov.au

Postal Address

Insurance Commission of Western Australia
GPO Box U1908
PERTH WA 6845

Facsimile

(+61) 8 9264 3522

Websites

www.icwa.wa.gov.au
www.riskcover.wa.gov.au




                                            7
1.0   OVERVIEW


1.1   EXECUTIVE SUMMARY

1.1.1 Chairman’s Report

      It is with pleasure that I present, on behalf of the Board of Commissioners of
      the Insurance Commission of Western Australia (Insurance Commission), the
      Insurance Commission’s Annual Report for 2009.

      Despite the ongoing affect of the Global Financial Crisis on investment
      markets producing cyclical negative returns during the 2009 financial year, the
      Insurance Commission continued to fulfil its vision of delivering efficient and
      equitable compensation schemes and responsible risk management services
      for the people of Western Australia at affordable and competitive prices.

      Investment Strategy and Performance of Investment Portfolio

      In a year in which the performance of investment markets suffered further
      severe deterioration, the Insurance Commission’s prudential investment policy
      of diversified asset allocation has limited the extent of the negative returns
      experienced by many other institutional investors.

      The conservative long-term cross-cycle investment strategy adopted by the
      Insurance Commission remains the key to ensuring protection of our
      investment assets.         The Insurance Commission’s 2009 investment
      performance compared favourably with the Mercer Pooled Fund Survey return
      reported for the financial year.

      As the world moves out of recession, the Insurance Commission is well
      placed to take advantage of improved market conditions and valuations
      without losing sight of inherent risks on the downside.

      The following graph highlights the out-performance achieved by the Insurance
      Commission over the investment cycles since 1996 compared to benchmark.




                                                                                    8
                                           Investment Returns from 1 January 1996 to 30 June 2009
                       20                                                                                                                                300

                                               Insurance Commission (Left-Hand-Side Axis)
                                                                                                                                                         250
                       15




                                                                                                                                                                Cumulative Quarterly Performance (%)
                                               Benchmark (Left-Hand-Side Axis)
                                                                                                                                                         200
                                               Insurance Commission Cumulative (Right-Hand-Side Axis)
Quarterly Return (%)




                       10                      Benchmark Cumulative (Right-Hand-Side Axis)                                                               150


                                                                                                                                                         100
                        5
                                                                                                                                                         50


                        0                                                                                                                                0


                                                                                                                                                         -50
                        -5
                                                                                                                                                         -100


                       -10                                                                                                                               -150
                             1996   1997     1998      1999        2000          2001        2002       2003   2004   2005   2006   2007   2008   2009




                                      Bell Recovery Action

                                      When Bond Corporation and its Bell Group subsidiaries collapsed in the early
                                      1990’s, their Court-appointed liquidators sought funding from creditors to
                                      enable them to investigate the circumstances of the insolvencies and take
                                      steps to recover assets. As a creditor of both Bond Corporation Holdings and
                                      Bell Group, the Insurance Commission elected to join with other creditors in
                                      supporting the Liquidators’ financial ability to carry out their statutory
                                      functions. This support has resulted in the Insurance Commission recovering
                                      more than $58 million from the Bond Corporation administration.

                                      On 30 April 2009, the Liquidators of the Bell Group were successful in
                                      obtaining an order of the Supreme Court of Western Australia requiring 20
                                      Banks to repay in excess of $1.6 billion to the Bell Group companies. The
                                      judgment in the Bell Recovery Action is the subject of appeal processes and
                                      the Bell Group administration has not been finalised at the date of this Annual
                                      Report.

                                      The principle behind the Insurance Commission’s policy of creditor support for
                                      liquidators has been the same in both the Bond Corporation and Bell Group
                                      Recovery Actions. Decisions taken in relation to the funding of liquidators
                                      have involved commercial rationale based on information available at the
                                      relevant time. Our current policy, on the basis of rigorous cost-benefit
                                      analysis, is to continue to support the recovery initiatives. The Insurance
                                      Commission arranged insurance covering some of its exposure as an
                                      indemnifying creditor to the level of funding which has been required by the
                                      Bell Group Liquidators to see their litigation through to the current stage and
                                      that insurance remains on foot.



                                                                                                                                                    9
Corporate Governance

The Insurance Commission’s Corporate Governance Charter describes
Corporate Governance as “the system by which the Insurance Commission of
Western Australia is directed and managed. It influences how the objectives
of the Insurance Commission are set and achieved, how risk is monitored and
assessed and how performance is optimised.”

Review of the Board Charter by the Corporate Governance Committee is
continuous and I am pleased to report that the Committee’s recommendations
continue to assist the Board in discharging the Insurance Commission’s
Corporate Governance objectives.

Management and Executive Committee

Our Managing Director, Vic Evans and the members of his Executive
Committee continue to provide the Insurance Commission and the people of
Western Australia with a dedicated and outstanding level of service. On behalf
of the Board, I extend sincere thanks to our committed Management team,
who work diligently in their respective specialist areas to ensure high levels of
performance by the Insurance Commission.

It is the strong leadership demonstrated by this group that enhances the
Insurance Commission’s positive reputation within the community, and
strengthens the positioning of the Insurance Commission as being ‘A Great
Place to Work’.

Acknowledgements

The Board acknowledges and appreciates the dedication shown by the staff
of the Insurance Commission and their commitment to achieving our vision.

I also express gratitude to my fellow Commissioners for their strategic support
and valuable contributions in bringing experience and robust views to the
deliberations of the Board.




MICHAEL E WRIGHT
CHAIRMAN
1.1.2 Managing Director’s Report

     Financial Performance

     For the financial year ended 30 June 2009, the Insurance Commission
     recorded a consolidated operating after-tax loss of $160.8 million (2008: $34.1
     million loss).

     Similar to last financial year, the Insurance Commission suffered a negative
     investment return in a turbulent world-wide investment environment. The
     investment return before fees and expenses was a negative 7.3%. This
     outperformed the Mercer Pooled Fund Survey peer funds which returned
     negative 12.5%.

     Despite the results, at balance date, total consolidated assets were $2.52
     billion (2008: $2.74 billion), with consolidated net assets of $704.3 million
     (2008: $880.7 million).

     Stakeholders can take comfort in the fact that the Insurance Commission
     adheres to strict prudential policies in managing risk in its investment portfolio.
     It has no material exposure to assets in the nature of the sub-prime
     collateralised debt obligations (CDOs) of the type which severely affected the
     global financial markets.

     Motor Vehicle Personal Injury

     The Third Party Insurance Fund (TPIF) posted an operating after-tax loss for
     2009 of $148.5 million (2008: $20.6 million loss), primarily due to the negative
     investment return. At 30 June 2009, net assets of the TPIF were $518.8
     million (2008: $667.3 million).

     The underwriting loss of $64.6 million is $29.2 million better than budgeted.
     Significant factors contributing to this performance are sound claims-
     management practices and the year on year decline in the claims frequency
     rate per thousand vehicles registered in Western Australia, which has
     averaged almost 7% per annum, since 1993.

     We therefore remain committed to supporting programs aimed at reducing
     road-related trauma in Western Australia and recognise that improving road
     safety in the State requires a long-term investment. As a result, in 2009, the
     TPIF contributed $2.8 million to Road Safety Council approved programs,
     intended to benefit the public of Western Australia.

     A major initiative undertaken in 2009 was the development and
     implementation of the first phase of our On-line Crash Reporting Facility
     (OCRF). This is a web-based facility for external use by customers which
     allows motor vehicle crashes resulting in personal injury, to be reported on-
     line. The second stage due for completion in the coming months will expand
     the system to accommodate the crash reporting requirements of WA Police



                                                                                      11
which will, in effect, result in a ‘one-stop’ whole of Government reporting
facility for motor vehicle crashes in Western Australia.

Finally, Western Australian family motorists continue to benefit from the
lowest premiums in all of Australia, which has been the case for the past 12
consecutive years.

RiskCover

In 2009, the RiskCover Fund reported an operating $30.8 million loss (2008:
$27.7 million loss). It also experienced the 7.3% gross negative investment
return, which resulted in a $36.5 million reduction in the value of RiskCover’s
share of the overall investment pool.

The underwriting result of a $5.7 million profit is $33.8 million better than
budgeted. This outcome arose first and foremost from a positive Premium
Adjustment which estimates the additional amount of income that needs to be
collected in future years by way of additional premiums, taking into account
realised investment returns.

Despite the Fund’s overall loss in 2009, its strong performance in prior years
enabled RiskCover to refund, in July 2008, $9.9 million of Performance
Adjustments in respect of the Workers’ Compensation and Motor Vehicle
insurance classes in July 2008 to agencies with positive claims records.

Furthermore, RiskCover was also able to return additional funds shared
amongst all member agencies, totalling $21.8 million by way of Fund
Experience Allowances in July 2008, resulting in a total return of funds of
$31.7 million.

At 30 June 2009, the RiskCover Fund remains in a fully-funded position, with
net assets of $49.9 million (2008: $102.5 million).

Acknowledgements

In closing, I thank the Insurance Commission staff for their professional
approach to the ongoing work and commitment towards the achievement of
our mission and vision.

Thanks also to our Minister, the Honourable Troy Buswell MLA, Treasurer,
our former Minister, Ljiljanna Ravlich MLC, the Insurance Commission Board,
and members of the Insurance Commission Executive Committee for their
valuable input and eagerness to ensure an excellent service is delivered by
the Insurance Commission.




VIC EVANS
MANAGING DIRECTOR
1.1.3 Significant Events

      x   Consolidated total assets at balance date were $2.52 billion, with
          consolidated net assets of $704.3 million.

      x   Consolidated after-tax loss of $160.8 million.

      x   Investment return for the year was negative 7.3% gross (negative 7.8% net of
          fees and expenses) and over the past 3 years was positive 4.8% per annum
          (positive 4.2% per annum after fees and expenses). Relative to peer group
          portfolios and the Insurance Commission’s underlying benchmark, this return
          was a relatively good outcome in what was a difficult period in financial
          markets. The 3 year median return of other funds reported in the Mercer
          Pooled Fund Survey was negative 3.5% per annum.

      x   The Insurance Commission implemented the first Phase of the On-line Crash
          Reporting Facility (OCRF) which is a simple and convenient web based
          facility for the reporting of motor vehicle crashes which result in personal
          injury.

      x   Western Australia’s Compulsory Third Party Insurance premium for a family
          motor vehicle remains the cheapest in Australia.

      x   Motor Vehicle Personal Injury Claims payments (net of GST) for the year,
          paid for the direct benefit of claimants amounted to approximately $288
          million (89%).

      x   The Third Party Insurance Fund remains fully-funded.

      x   $2.8 million was contributed to road safety education in partnership with the
          Office of Road Safety.

      x   The RiskCover Fund, underwritten by the Government of Western Australia,
          ended the year in a positive reserve position of $49.9 million, despite the
          difficult economic conditions because of a $62.1 million Premium Adjustment
          to be charged in future years.

      x   The RiskCover Fund was again able to return funds to agency members
          totalling $21.8 million by way of Fund Experience Allowances and
          Contribution Performance Adjustments.

      x   RiskCover successfully deployed its RiskBase web-enabled software to 80
          Western Australian Government agencies. This system assists agencies to
          record, monitor and report on risks, controls and treatment action plans as
          part of their ongoing risk management programs.

      x   RiskCover reviewed all of its Workers’ Compensation and commercial claims
          management processes and produced comprehensive Standard Operating
          Procedures designed to support consistent best practice in claims
          management.




                                                                                     13
1.1.4 Financial Overview – Insurance Commission of Western Australia
      (Consolidated)



      INCOME STATEMENT                                             2005         20015           2007         2008         2009
                                                                  $,000        S'Ooo           5'OOO         $000         $000

      Net Premium Revenue                                       338259       351,7511        345,434       356,865      380518

      Claims Expense                                           (303891)      (328.626)       (346246)     (314,064)    (408,4371
      Reinsurance and O:her Recovehes Revenue                    23550          2.570           3992          1887         3286
      Net Claims Incurred                                      (280341)      (326.116)       (342254)     1312,177)    (405,151'i

      Gross Movement in Unexpired Risk Liability                        -               -     (111881          488       10,702
      Reinsurance and Other Recovenes on Unexpired Risk
      Liability                                                         -               -      10,000          7CC       (10,700)
      Net Movement in Unexpired Risk Liability                          -               -      (1188)         1,188              -



     Acquisition Costs                                            (7,812)      (8.176)        (11,224)      (10,109)     (11,007)
     Underwriting and Administration F      enses                (52 812)     (59 05          (46,785)      45,812)      (62127)
      Underwriting Loss                                           (8,712)     (41.601)        (56,017)      10.045)      (97,767)

     Investment (LossVlncome including Movements in
     Fair Value                                                 239,140      347.277         493,523        (75,333)   (202,828)
     Investment Exense                                          t12,736)     (16.904)         (18,473)      (19.918)    (21,540)
     Finance Recoup!(Costs)                                     (43,733)     (62.401)         (98,453)       15,863      42,244
     Other Income                                                40,253       23.927           25,874        34,823      56,523
     Other Expenses                                               (8.439)      (9.461)          (9,325'     (12,932)    (16,166)
      (Loss)Protit Before Income Tax Equivalent
                                                                205,773      240.837         337,129        (67,542)   (239,534)
      Benef it (Expense)

      Income Tax Equivalent BenetittExpense)                     (50643)      (70.213)        (93736)       33.432       78,6CC
      (Loss)Profit After Income Tax Equivalent
                                                                155,130      170.624         243,393        (34,110)   (160,037)
      Benefit(Expense)


      BALANCE SHEET

      Financial Assets at Fair Value Itirough Profit or Loss   1,301,426    1,533.928       1.815,186     1,749,356    1,588,507
      Other Asse:s                                              1187803       751 332         325479        930,47       926,241
     Total Assets                                              1.989,279    2,285.265       2.740,665     2.744,830    2,515,508

      Oulstanding Claims Liability                             1,390,421    1,420.340       1.449,970     1,459,920    1,545,242
      Unearned Prertiuris Liability                              135,805      145.252         139,702       150,231      162,085
      O:her Liabililies                                          78,857       156 952        275089         203,932        3,627
     Total Liabilities                                         1605,083     1708.044        1.864,762     1,864,083    1,811,171

      Net Assets                                                384.196      577.222         875,903       080,747      704,337

     Asset Revaluation Reserve                                     2,256.     25.368          20,650        19,61C      104,037
     Compensation (Industrial Diseases Fund Reserve              12,569       13,957          18,133        18,093       16,505
     Re:ained Earnings                                          368551       537.897         777,114       743,044      583,725
     Total Equity                                               384,1910     577.222         875,903       880,747      704,337

     The Financial Overview excludes the RiskCover Fund and Community Insurance Fun

      For full details, refer Financial Statements section,




                                                                                                                                     14
FINANCIAL OVERVIEW - INSURANCE COMMISSION OF WESTERN AUSTRALIA
(CONSOLIDATED) (continued)


  s000                           Income Staternont                           s.000                 Balance Sheet
 00000                                                                  3000,000

 '000O0
                                                                        2500000
 000000

  0O000                                                                 2000, [




                  I.'.
  0O00O
                                                                        I   500,0O



                                                                        I ,000,000

(100000)
                                                                            500000
  0O000)

 300000)
               2005         2006        2007         2008        2009
                                                                                        2005     2006      2007        2008   2009
                                         Year
                                                                                                           Year
          Unders nh rig Lcs
          (LossltProiit After Incorri Tax EqxivIent Bene0t.(Expexriet             Total Ariets     Total Liabilitiex   Total Equit0
          Ixrtrrxt L.: xlome including Mxxi rxrit in Fair'.aLx




                                                                                                                                      15
1.2   OPERATIONAL STRUCTURE

1.2.1 History

      The State Government Insurance Commission was established on 1 January
      1987 in accordance with the State Government Insurance Act 1986. This
      came about following the amalgamation of the Motor Vehicle Insurance Trust
      and the State Government Insurance Office.

      The State Government Insurance Corporation was also established on
      1 January 1987 as a subsidiary of the State Government Insurance
      Commission, and traded as SGIO until 1993.

      On 1 October 1997, the State Government Insurance Commission’s corporate
      identity changed. This is the date that the organisation became the Insurance
      Commission of Western Australia (Insurance Commission).

      Detailed history of the Insurance Commission is available on our website.

1.2.2 About the Insurance Commission

      The Insurance Commission is primarily responsible for administering,
      underwriting and managing Western Australia’s Compulsory Third Party
      (CTP) Insurance scheme for motor vehicle personal injuries.

      Western Australia operates a common law, fault-based CTP motor vehicle
      (personal injury) insurance scheme. The scheme offers owners and drivers of
      Western Australian registered motor vehicles an insurance policy that
      provides unlimited protection against liability arising from personal injury
      caused by, through, or in connection with the negligent driving of the insured
      motor vehicle.

      The scheme provides access to common law remedies to persons injured in a
      crash, if they are able to establish negligence against the owner or driver of a
      motor vehicle registered in Western Australia.

      In addition, RiskCover, a self-insurance and risk management enterprise is
      managed by the Insurance Commission on behalf of the Government of
      Western Australia’s Department of Treasury and Finance. RiskCover was
      established in 1997 as a Business Division of the Insurance Commission.

      The Community Insurance Fund is another fund managed on behalf of the
      Government of Western Australia’s Department of Treasury and Finance. The
      Fund was set up in 2002 in order to provide affordable insurance to
      community groups as this was not available from the private sector insurers.

1.2.3 Responsible Minister

      The Honourable Troy Buswell, MLA, Treasurer, is the Minister responsible for
      the Insurance Commission.


                                                                                    16
1.2.4 Enabling Legislation

      The Insurance Commission was established as a statutory authority under
      Section 4 of the Insurance Commission of Western Australia Act 1986 and
      operates in accordance with this Act.

1.2.5 Administering Legislation

      The Insurance Commission is administered in accordance with the following
      Acts:
            x Insurance Commission of Western Australia Act 1986
            x Motor Vehicle (Third Party Insurance) Act 1943

      A list of other Acts and written laws which may impact on the performance of
      the Insurance Commission’s functions is provided in the Appendix.

1.2.6 Relationship with Government of Western Australia

      The Insurance Commission is an Agent of the Crown in right of the State and
      has the status, immunities and privileges of the Crown, except as otherwise
      prescribed in the Insurance Commission of Western Australia Act 1986.

1.2.7 Funds

      The Insurance Commission underwrites and manages four Funds under its
      enabling legislation: the Third Party Insurance Fund; the Compensation
      (Industrial Diseases) Fund; the Insurance Commission General Fund; and the
      Government Insurance Fund. It should be noted that the Government of
      Western Australia indemnifies the Insurance Commission for any deficit in the
      Government Insurance Fund (Refer Note 4 of the Financial Statements).

      The State Government Insurance Corporation (Corporation) is a wholly-
      owned subsidiary of the Insurance Commission. It is a separate legal entity
      and publishes its own Annual Report.

      The Corporation exists to run-off small lines of Australian and overseas
      inwards reinsurance business written between 1988 and 1992. The Insurance
      Commission’s RiskCover Division manages the run-off of the Corporation’s
      business.

      The Insurance Commission also manages two Funds underwritten by the
      Government of Western Australia: the RiskCover Fund and the Community
      Insurance Fund.

      The consolidated financial results of the Insurance Commission represent the
      combined results of the Insurance Commission and the Corporation, but
      exclude the RiskCover Fund and the Community Insurance Fund.




                                                                                 17
1.2.8 Organisational Structure

      The Insurance Commission has two main insurance business divisions: the
      Motor Vehicle Personal Injury (MVPI) Division and the RiskCover Division.
      These two insurance business divisions are supported by six corporate
      service divisions:

            x   Investments;
            x   Finance and Administration;
            x   Human Resources;
            x   Information Technology;
            x   Special Investigations; and
            x   Office of the Commission.

      The Office of the Commission, led by the Managing Director, is responsible
      for the provision of overall leadership; ensuring compliance with legislation;
      policy advice; administrative support and performance reporting to the Board
      of Commissioners and ultimately the Minister.

      The Managing Director works with the Insurance Commission’s Board of
      Commissioners and Executive Committee to oversee strategic planning, and
      all operational and administrative functions of the organisation.




                                                                                  18
                                             ORGANISATION CHART




                                                        ON TOY BU5WELL ML.A
                                             Treasurer c the Western AustraLan Goerrrrrr ent




        Corporal. -:srnanc                                                                                  Audit and A:ounts
                Corr m tte                                                                                     Ccr-nilt.e




                                                     BOARD OF CO MSSIONERS
                                               lnsuranc Cornrnssio,
                                        L- R: )udt M: wart Slaror        M+thae Wright
                                           ChairranI, Fel.r Eat.vccd 1Depty Chairrar,
                                          Arnerrue MuUl&Vi: Evars and Cou° Paice




                                                 VICEVAN5 MA                DIRECTOR
                                                        (Chiet Exec tive OUicerl

            L EW WArTc                                                                                           rHLLV
          GeneraL Manager                                                                               General Manager
             Insurance                                                                                 CQrporat Services




 B ZANIJTTIrm                ['ON WILLIAMS                                                 'JLIFON[LL                  ERNIE COW ELL
  Mana;er                      Maraer                                                           N anaer              MANAGER FINAN&
                                                                                               rwetrnerts            & ADMINI[IRA1DON
FroraI njuri                                                                                                         Chief Fir nce Ofticer




                     1LI.N                                                                  DT DPEIGHT                   PETEP    1OD
                 Marragex                                                                   Manager                         Manaer
        Speda Irest1atons                                                                Human Res*un:es             Morni aI n TechnIoqj

                                                                 USAN VvL.i: i
                                                                   Achny
                                                         ubtiC    e ?tior5 Maraer




                                                                                                                                        19
1.2.9 Board of Commissioners

     The Board of Commissioners (Board) is the governing body of the Insurance
     Commission. It has legislative authority to exercise and perform the powers,
     functions and duties conferred or imposed on the Insurance Commission
     under the Insurance Commission of Western Australia Act 1986.

     The Board is responsible for:

        x   The overall corporate governance of the Insurance Commission;
        x   Approving its goals, strategic directions and budgets; and
        x   Ensuring that legal compliance, ethical behaviour and proper risk
            management processes are in place and operate effectively.

     Comprehensive monthly reports are provided to the Board to enable it to
     monitor performance, and Board meetings are generally held monthly.

     The structure of the Board is subject to the following parameters:

        x   The Board must comprise at least three and not more than six persons
            appointed as Commissioners; and the Managing Director who is a
            Commissioner ex-officio;

        x   Commissioners are appointed by the Governor of Western Australia on
            the nomination of the Minister;

        x   The Minister appoints a Chairperson and Deputy Chairperson from the
            six non-Executive Commissioners; and

        x   Commissioners are appointed for terms of up to three years and are
            eligible for re-appointment.

     Code of Conduct

     The Insurance Commission’s Code of Conduct requires all Commissioners to
     act with honesty, fairness and integrity and to display the highest ethical
     standards at all times.

     Commissioners’ and Managing Director’s Remuneration

     Remuneration for non-Executive Commissioners is determined by the Minister
     on the recommendation received from the Minister for Public Sector
     Management. Non-Executive Commissioners receive 9% in superannuation
     but do not receive any other retirement benefits.

     Through a long-standing administrative arrangement, the remuneration of the
     Managing Director is currently aligned to salary movements as determined by
     the Salaries and Allowances Tribunal for the Special Division Officers within
     the Public Service.



                                                                                20
Board Performance

Board members completed a Board Performance                    Measurement
Questionnaire as part of their annual evaluation process.

Changes to the Board

There were no changes to the composition of the Board during the year.

Board of Commissioners’ Profiles

As at 30 June 2009, the Board of Commissioners comprised:

Michael E Wright FAICD
Chairman

Mr Wright is a Barrister and Solicitor who has been in legal practice since
1964 and is a former senior partner of law firm Mallesons Stephen Jaques. Mr
Wright specialised in banking and finance and corporate commercial and
resources law. He is a past National President of the Australian Mining and
Petroleum Law Association Limited, Past Deputy Chairman of Wesfi Limited
Group and a past Director of Markalinga Investments Ltd. Mr Wright is a
Director with CCK Financial Solutions Limited and Wesbeam Holdings Limited
Group.

Committee Membership
Audit and Accounts Committee

First appointed: 7 January 1993, appointed Chairman 27 June 1994
Expiry of present term: 30 November 2009

Peter D Eastwood AM FCA, FAICD
Deputy Chairman

Mr Eastwood is a Chartered Accountant who practised in this profession for
more than 35 years, and was a partner of Grant Thornton from 1971 to 1997.
His experience as a practising Chartered Accountant was principally as a
company auditor and his audit experience includes a wide range of industries,
including mining, public company audits and assignments for the Office of the
Auditor General. Mr Eastwood is also on the Board of Directors for Unimutual
Limited; Unimutual Insurance (NZ) Limited and Unimutual (Isle of Man)
Limited.

Committee Membership
Chair, Audit and Accounts Committee
Corporate Governance Committee

First appointed: 24 May 1994, appointed Deputy Chairman 19 July 1994




                                                                           21
Mr Eastwood’s present term as Commissioner and Deputy Chairman expired
on 30 September 2008 and continues in accordance with Section 5 of the
Insurance Commission of Western Australia Act 1986.

Sharon Brown
Commissioner

Ms Brown has more than 30 years experience in the Information Technology
industry and is the Director of Sales at the Change Corporation. Ms Brown
was ‘Telstra Business Woman of the Year’ for Western Australia in 1999. She
is a Board Member of the Rottnest Island Authority and the Federal CRC
Committee and a Councillor for the Technology and Industry Advisory Council
Western Australia and Defence Reserves Support Council.

Committee Membership
Audit and Accounts Committee

First appointed: 11 December 2001
Expiry of present term: 30 November 2009

Annemie McAuliffe MLS, Dip Ed, CMC
Commissioner

Ms McAuliffe has a background in business management and strategic
planning and undertakes independent consulting work. Her previous positions
have included Director of Gilbert McAuliffe & Associates P/L; Director of the
Western Australian (WA) Trade Office in Indonesia; Manager of the
International Relations Branch for the WA Department of Trade and
Commerce and Ministerial Representative for Industry and Technology with
the WA London Office. Ms McAuliffe is a Board Member of the WA Potato
Marketing Corporation and Chair of the WA Telecentres Advisory Council.

Committee Membership
Audit and Accounts Committee
Chair, Corporate Governance Committee

First appointed: 1 January 2003
Expiry of present term: 31 December 2009

Doug Pascoe AAII
Commissioner

Mr Pascoe worked in the insurance industry for more than 40 years and held
National General Manager positions at AGC (Insurances) Limited; AMP
United Insurance Limited and MMI Insurance (now Allianz). He also held the
position of General Manager Insurance with the Insurance Commission of
Western Australia from 1996-2002. Mr Pascoe was the Governor of Rotary
International District 9450 in Western Australia for 2003-2004 and is a past
Director of Rotary Australia World Community Service Limited. He is also a
Director of Foodbank of Western Australia and Meath Care Incorporated.


                                                                           22
Committee Membership
Audit and Accounts Committee
Corporate Governance Committee

First appointed: 1 January 2003

Commissioner Pascoe’s present term expired on 31 December 2008 and
continues in accordance with Section 5 of the Insurance Commission of
Western Australia Act 1986.

Judy McGowan LLB
Commissioner

Ms McGowan has broad academic knowledge of Consumer, Trade Practices,
Contract and Fair Trading laws from lecturing at university level since 1976.
She is a compliance and legal issues trainer for numerous government and
private organisations, and a Sexual Harassment Mediator for Curtin
University. Since 1976, Ms McGowan has lectured in Law at the Curtin
University Business School. Her previous Directorships include the Western
Australian Dental Board; Unicredit; TAB; Aquinas College; Western Australian
Gaming Commission and Tribunal Member on the Small Claims Tribunal and
the Building Disputes Tribunal.

Committee Membership
Audit and Accounts Committee
Corporate Governance Committee

First appointed: 1 December 2005
Expiry of present term: 30 November 2009

Vic Evans Dip Bus Mgt, AFAIM
Commissioner

Mr Evans has been the Managing Director/Chief Executive Officer of the
Insurance Commission of Western Australia since 1993. He is responsible for
the operations of the Insurance Commission and is the only executive
member of the Board.

First appointed: 22 June 1993
Expiry of present term: 30 September 2011

Board Committees

Committees of the Board that operated during the year were:

Audit and Accounts Committee

The Audit and Accounts Committee is responsible for making
recommendations to the Board on the adequacy of internal audit
arrangements; financial statements; financial administration policies and


                                                                           23
     reporting procedures. The Board also monitors recommendations arising from
     external audits and take appropriate follow up actions. This Committee
     regularly meets with the Internal Auditors and officers of the Office of the
     Auditor General.

     Corporate Governance Committee

     The Corporate Governance Committee assists the Board in discharging its
     corporate governance responsibilities. The Committee met once during the
     2009 financial year.

     Commissioners’ Attendance at Meetings in 2008-2009

                       Board          Audit and       Corporate
                      Meetings        Accounts       Governance
                        (12)            (10)             (1)
       Michael E             11                9             N/A
       Wright
       Peter D                 10                8                 1
       Eastwood
       Sharon                  10                7              N/A
       Brown
       Annemie                 11                8                 1
       McAuliffe
       Doug                    12               10                 1
       Pascoe
       Judy                    11                9                 1
       McGowan
       Vic Evans               11             N/A*             N/A*

     * Mr Vic Evans attends the Audit and Accounts and Corporate Governance Committee
       meetings in his capacity as Managing Director.

1.2.10 Executive Committee

     The Insurance Commission’s Executive Committee comprises the Managing
     Director, the two General Managers and the seven Divisional Managers. The
     Executive Committee met nine times in 2009. A profile of each member of the
     Executive Committee is provided below.

     Vic Evans – Dip Bus Mgt, AFAIM
     Managing Director

     Mr Evans commenced work with the then Motor Vehicle Insurance Trust in
     1960. With more than 40 years experience in all facets of the insurance
     industry, including Compulsory Third Party Insurance, general insurance and
     reinsurance, he has held senior management positions with the organisation
     since 1976 and was appointed Managing Director in 1993.




                                                                                        24
Mr Evans is responsible for overseeing the performance of the Insurance
Commission’s functions and operations. He is also Chairman of the State
Government Insurance Corporation.

Ken McAullay – Grad Dip Bus, Grad Cert Mgt, Dip Pub Admin
General Manager Corporate Services

Mr McAullay joined the Insurance Commission in 1986. He has more than 40
years experience in corporate services. Prior to being appointed General
Manager Corporate Services in 1996, he had been the Manager Human
Resources and Corporate Secretary, a role he has performed for the Board
over the past 21 years.

As General Manager Corporate Services, Mr McAullay is responsible for the
Corporate Services operations of the Insurance Commission (i.e. Finance and
Administration, Human Resources, Information Technology and Investments).

Lew Watts – Dip Pub Admin, AAII, Grad Cert Bus Admin
General Manager Insurance

Mr Watts commenced work with the then SGIO in 1975 and worked in a
diverse range of roles with the Insurance Commission and its predecessor
agencies. His senior management experience encompasses six years as the
Manager Human Resources followed by a further six years as the Manager
Motor Vehicle Personal Injury Division, culminating in his appointment as the
General Manager Insurance in December 2002.

Mr Watts is responsible for the insurance operations of the organisation (i.e.
Motor Vehicle Personal Injury, RiskCover and Special Investigations).

Fab Zanuttigh – MBA, Grad Cert Mgt, AIMM
Manager Motor Vehicle Personal Injury

Mr Zanuttigh has post-graduate qualifications in business and 25 years
experience in Compulsory Third Party Insurance. He has been the Manager
of the Motor Vehicle Personal Injury Division since 2003.

Mr Zanuttigh is responsible for ensuring the effective management of the
Third Party Insurance Fund in accordance with the relevant legislation.

Don Williams – Dip Bus Admin, AIMM
Manager RiskCover

Mr Williams is responsible for the effective management of the RiskCover
Division which manages the Western Australian Government's self-insurance
managed fund (RiskCover), and a number of smaller insurance funds. He
oversees the risk management and self-insurance services RiskCover
provides to Western Australian Government agencies, and the risk
management services, advice and assistance provided for the whole-of-
government.


                                                                            25
Mr Williams has more than 40 years experience in all facets of general
insurance company operations.

Jim Milligan – M Crim Just, MSc, Grad Cert Comp. Sec
Manager Special Investigations

Mr Milligan has more than 30 years experience investigating criminal and
commercial activities. He served with the Criminal Investigations Branch of
the Western Australia Police Service for many years and spent two years
attached to the National Crime Authority’s Melbourne office.

Mr Milligan has managed the Insurance Commission’s Special Investigations
Division since joining the Insurance Commission in 1990. He is responsible
for co-ordinating strategies to protect the assets of the Insurance Commission
and minimising the incidence of fraud.

Peter Amos – BSc, BA
Manager Information Technology

Mr Amos has more than 35 years experience in Information Technology
Management positions, working in a variety of sectors including government,
national and international organisations trading in the manufacturing and
financial services sectors.

Mr Amos has managed the Insurance Commission’s Information Technology
Division since joining the organisation in 1989. Mr Amos is responsible for the
planning, development and operation of the Insurance Commission’s
information systems. He ensures that the Insurance Commission’s information
systems requirements are met via systems maintenance and systems and
technological improvements.

Grant Speight – M HRM, Grad Dip Bus, Grad Cert Bus Admin, FAHRI
Manager Human Resources

Mr Speight has 20 years experience in human resource management and, as
a Fellow of the Australian Human Resource Institute, is active in a number of
external human resource and industry advisory committees.

Mr Speight commenced his career in the general insurance areas of the then
SGIO in 1977 before moving into a number of senior human resource roles,
culminating in his appointment as the Manager Human Resources Division in
1996.

Mr Speight is responsible for developing and implementing human resource
strategies that contribute to the achievement of the Insurance Commission’s
corporate objectives.




                                                                             26
Julie O’Neill – Executive MBA, B Econs (Hons), DFP
Manager Investments

Ms O’Neill has more than 20 years experience in the management of
institutional investment portfolios, including the construction and
implementation of multi-manager portfolios and direct management of
Australian Equity, Fixed Interest and Cash portfolios. Previously, as an asset
consultant, she advised a number of large WA institutional investors on their
investments.

Ms O’Neill is responsible for the effective management of the Insurance
Commission’s investment portfolio. She has been involved in developing and
implementing the Insurance Commission’s investment strategy since 2002
and was appointed the Manager Investments Division in June 2007.

Ernie Cowell – FCCA, FPNA
Manager Finance and Administration (Chief Finance Officer)

Mr Cowell is a Fellow of the Association of Chartered Certified Accountants
(United Kingdom) and of the National Institute of Accountants (Australia). Mr
Cowell held senior finance roles in the private sector before joining the
Insurance Commission in 1999. His accounting experience, spanning 36
years, includes strategic business planning, external financial and due
diligence auditing, the management of financial system implementations and
management and statutory reporting.

As the Manager Finance and Administration Division, Mr Cowell has primary
responsibility for, inter alia:

      x   the preparation of financial information to facilitate the discharge of
          statutory reporting obligations of the Insurance Commission;

      x   the provision of advice on the effectiveness of accounting and
          financial management information systems and financial controls,
          financial risk and in meeting the Insurance Commission’s
          requirements;

      x   the provision of advice concerning the financial implications of, and
          financial risks to, the Insurance Commission’s current and projected
          services; and

      x   the development of strategic options for the future financial
          management and capability of the agency.




                                                                               27
1.3   PERFORMANCE MANAGEMENT FRAMEWORK

1.3.1 Outcome Based Management Framework

      Relationship to Government Strategic Goals

      The Insurance Commission’s Key Outcomes support the current high-level
      Government goals:

      Outcomes Based Service Delivery: Greater focus on achieving results in key
      service delivery areas for the benefit of all Western Australians.

         x   Minimise the financial hardship of motor vehicle personal injury
             claimants through timely, equitable and efficient claims management
             for motor vehicle personal injury claimants.

         x   Ensure that all Western Australian motor vehicles using public roads
             are registered and insured by the provision of affordable premiums to
             owners of Western Australian registered motor vehicles.

         x   Minimise the financial hardship of industrial disease claimants through
             timely, equitable and efficient claims management for industrial disease
             claimants.

      Financial and Economic Responsibility: Responsibly managing the State’s
      finances through the efficient and effective delivery of services, encouraging
      economic activity and reducing regulatory burdens on the private sector.

         x   Promote and support the growth of risk management practice to
             minimise the cost of risk to Government. RiskCover supports Western
             Australian Public Authorities in implementing their risk management.
             RiskCover’s insurance and risk management services, support and
             advice, have directly minimised the cost of risk for the Government of
             Western Australia.

1.3.2 Changes to Outcome Based Management Framework

      There were no changes to the Insurance Commission’s Key Outcomes or Key
      Performance Indicators during 2009.

1.3.3 Shared Responsibilities With Other Agencies

      The Insurance Commission does not have any shared responsibilities with
      other agencies.




                                                                                   28
2.0   AGENCY PERFORMANCE

2.1   FINANCIAL BUDGETS – Actual Performance Compared to Budget (Not
      Consolidated)


                                                                                              2009
                                                                                 Budget          Actual         Variationk
                                                                                   s,000           $'000             $'000

       Net Premium Revenue                                                      380375         380,518                 143
       Net Claims Incurred                                                     (426,869)      (406.463)            20.406
       Underwriting and Administration Expenses                                  (75.240)      (73,129)             2,111
       Underwriting Loss                                                       (121,734)        (99074)            22,660

       Net Investment Income                                                    143,926       (224,368)         (368.294)
       Finance (Cosls)lRecoup                                                   (21668)          41242            62,910
       Other                                                                     12479           42,028           29.549
       Profiti(Loss) Before Income Tax Equivalent
                                                                                  13,003      (240,172)         (253,175)
       (Expense)/Benefit

       This comparison excludes the RiskCover Fund and Community Insurance Fund.

            Detailed explanation of variations are contained in Note 30 'Explanatory Statement' to the financial
            statements

       Total Equity (as per Balance Sheet)                                                     704,337




2.2   KEY PERFORMANCE INDICATORS SUMMARY – Actual Performance
      Compared to Budget



                                                                                                 2009
                                                                                   Budget          Actual          Variation*

       Profitl(Loss) before Income Tax Equivalent (Expense)/Benefit to
       Net Premium Revenue (%)                                                         3.4           (63.1)            (66.5)

       Profitl(Loss) before Income Tax Equivalent (Expense)/Benefit to
       Total Revenue (%)                                                               2.2           (99.3)           (101.5)

       Return on Total Assets (%)                                                      0.5              (9.1)           (9.6)

       Net Operating Cash Inflow (SM)                                                 89.2           163.1              73.9

       Investment Income Rate of Return (%)                                            5.4              (7.3)          (12.7)

       Net Loss Ratio (%)                                                           111.4            104.8              (6,6)

       Net Expense Ratio (%)                                                           9.7               9.4            (0.3)

       Net Investment Ratio (%) **                                                    27.3           (41.0)            (68.3)

       This Comparison excludes the RskCover Fund and Community Insurance Fund.

            Detailed explanation of variations are contained in the Key Performance Indicators section
            Third Party Insurance Fund only




                                                                                                                                29
2.3   MOTOR VEHICLE THIRD PARTY (PERSONAL INJURY) INSURANCE

      Objectives

             x   To provide affordable premiums to owners of Western Australian
                 registered motor vehicles;
             x   To provide a claims system that treats claimants fairly and delivers
                 equitable compensation in a timely manner;
             x   To ensure that the Third Party Insurance Fund is fully funded.

      Overview

      Motor Vehicle Personal Injury Insurance is compulsory in all States and
      Territories of Australia. It is commonly referred to as Compulsory Third Party
      (CTP) Insurance. The Insurance Commission is the sole provider of CTP
      Insurance in Western Australia.

      The Motor Vehicle Personal Injury (MVPI) Division of the Insurance
      Commission deals with all personal and fatal injury claims resulting from
      motor vehicle crashes involving Western Australian registered vehicles.

      The MVPI Division operates in accordance with the provisions of the Motor
      Vehicle (Third Party Insurance) Act 1943 and the Motor Vehicle (Third Party
      Insurance) Amendment Act 2006.

      For a personal or fatal injury claim to be successful, negligence must first be
      established against the owner or driver of a Western Australian registered
      motor vehicle.

      The most commonly misunderstood aspect of the CTP scheme in Western
      Australia is the extent of cover provided to the policyholder. The Policy does
      not cover drivers for injuries they receive as a result of their own negligence or
      damage to vehicles or other property.

      The Policy does, however, indemnify the owner or driver of Western
      Australian registered motor vehicles against liability for personal bodily injury
      claims made against them by a third party.

      At 30 June 2009 there were approximately 2.3 million motor vehicles
      registered in Western Australia (including approximately 420,000 caravans
      and trailers).

      The Department of Transport (formerly the Department for Planning and
      Infrastructure (DPI)) acts as the Insurance Commission’s agent for issuing
      CTP Insurance policies and the collection of premiums and policy data. The
      unlimited indemnity CTP Insurance policy is combined with the motor vehicle
      licence issued by the Department of Transport and its agents. In exchange for
      this service, the Insurance Commission pays commission to the Department
      of Transport, calculated on a ‘fee-per-transaction’ basis.



                                                                                      30
This partnership delivers the benefit to Western Australian motorists of a
‘one-step’ process for the renewal of vehicle licences and CTP Insurance in
an efficient and cost-effective manner.

Outcomes

Third Party Insurance Fund Performance

The net assets of the Third Party Insurance Fund (TPIF) were $518.8 million
as at 30 June 2009, compared to $667.3 million in 2008. This decrease in net
assets is largely driven by the reduction in assets value resulting from the
volatility of investment markets experienced during the financial year and the
investment return of negative 7.3% (before fees and expenses). A better than
budget underwriting performance helped to partially offset this loss.

For the 2009 year, the actual underwriting result for the TPIF was a $64.6
million loss, which was $29.2 million better than the budgeted loss of $93.8
million. The better than budget result was primarily driven by a lower than
forecast upward movement in outstanding claims provisions, reflecting the
continuing decline in the claims frequency rate and sound claims-
management practices.

Claims payments for the 2009 year amounted to $325 million (Net of GST) of
which approximately $288 million was paid for the direct benefit of claimants.

Proportion of Total Claims Costs Paid for the Benefit of Claimants

2009
                              Operational Costs
                                    11%




    Claimant Benefit
         89%                                                         Operational Costs
                                                                            7%
                           2008




                                                  Claimant Benefit
                                                       93%




                                                                                         31
Net Claims Incurred for the reporting year was $398.6 million (2008: $323.7
million). This outcome is $25.3 million better than the $423.9 million budget.
This results from a lower than forecast movement in outstanding claims
provisions, partially offset by total claims payments being marginally higher
than forecast (forecast 4,137) because more than the forecast number of
claims were settled. A total of 4,409 claims were finalised during the year and
the total outstanding active claims were reduced from 7,631 (at 30 June 2008)
to 7,300 (at 30 June 2009), a reduction of 331 claims.

Annual Expenditure by Head of Damage 2009

                                      2008 (%)        2009 (%)
    Ambulance                               1.6            1.6
    Costs – Defendant                       3.0             3.4
    Costs – Plaintiff                       6.0             6.0
    Doctor                                  9.6            7.6
    Future Economic Loss                  16.1            16.2
    Future Medical                          3.1            3.1
    Gratuitous Services                   14.7            12.8
    Hospital                                8.2            9.5
    Interest                                0.2            0.1
    Investigations                          0.8            0.6
    Loss of Amenities                     20.1            21.2
    Past Economic Loss                      8.9             9.5
    Sundries - Defendant                    1.6             1.8
    Sundries - Other                        6.1             6.6
    Total                                  100             100

During the year, 4,078 new claims were received (2008: 4,195). This is 117
claims less than the previous year, although marginally higher than was
forecast. The overall claim frequency, however, continues to decline.

For further information, refer to Motor Vehicle Personal Injury Claims Trends
in the Significant Issues Impacting the Agency section of this Annual Report.

Benefits

The CTP scheme in Western Australia continues to provide:

      x    The lowest premiums in Australia for a family motor vehicle;
      x    Benefits to claimants equivalent to, or better than, those provided
           by schemes in the other States and Territories of Australia;
      x    Cost-efficient administration when compared with schemes in other
           States and Territories of Australia; and
      x    A Third Party Insurance Fund which is fully funded.

To view the Pricing Policy of the CTP Insurance, refer to the Pricing Policies
of Services Provided section of this Annual Report.



                                                                             32
The MVPI Division monitors and evaluates progress towards achieving its
stated objectives by the use of Performance Indicators. The outcomes are
reported in the Performance Indicators section of this Annual Report.

Premiums

There was no increase in CTP premiums for the 2009 financial year. This
followed an inflation-linked 4.6% increase in July 2007 which was preceded
by a 10% reduction in July 2006. Since July 2003, Western Australia’s CTP
premiums have increased on only two occasions (2004 and 2008).

                                          Ten Year History of Premium Adjustments
                 10

                  8

                  6

                  4
Adjustment (%)




                  2

                  0
                            2000   2001     2002   2003    2004      2005          2006      2007     2008    2009   2010
                  -2

                  -4

                  -6

                  -8

                 -10

                 -12
                                                                     Year

                  (*2004 was a GST linked premium increase due to the end of transitional arrangements
                  for CTP Insurance)

In April 2009, the Treasurer endorsed the Board of Commissioners’
recommendation for an inflation-linked premium pool increase of 4% for most
vehicle classes, for the 2010 financial year. This increase is driven by the
volatility of the investment markets over the past 12 months. Notwithstanding
the 4% increase, Western Australia will continue to provide the cheapest
private motor vehicle CTP premium in Australia.

                  Compulsory Third Party Insurance Premium Rates for a Private Motor
                  Car (Excl. GST) Australia-wide as at 1 July 2009

                   WA

                  TAS

                 QLD *

                 NSW *

                   VIC

                  ACT

                   SA

                       NT

                        $0         $50      $100    $150     $200           $250          $300      $350     $400    $450


                                                                  Amount $


                            * Lowest Premium on offer amongst the private insurers operating in these States


                                                                                                                            33
Customers

Management of personal injury claims is by far the largest part of the MVPI
Division’s operations. We remain focused on our efforts to continually improve
the efficiency and delivery of service to our customers.

During the year, the Insurance Commission implemented the first Phase of
the ‘On-line Crash Reporting Facility’ (OCRF). This is a web-based facility for
external use by customers that allows the reporting of motor vehicle crashes
which result in personal injury to take place on-line, with the added
convenience of access outside normal business hours. The system has been
designed to:

       x   Simplify the reporting of a crash by providing a crash report form
           that is context-sensitive;
       x   Improve the accuracy and reliability of crash data by means of
           automated validation functions and protocols;
       x   Enable real time sharing and exchange of crash data electronically
           with partner agencies such as WA Police and Department of
           Transport (formerly Department for Planning and Infrastructure).

With the support of the Road Safety Council (RSC) and partner agencies (WA
Police, Department of Transport, Office of Road Safety, Main Roads WA and
Department of Health), work is currently underway to implement Phase 2 of
the Project, which expands the facility to include crash reporting requirements
for WA Police. When implemented, this will result in an on-line reporting
facility for all motor vehicle crashes (i.e. personal injury and property damage)
in Western Australia. This additional functionality is anticipated to be delivered
in the first half of the 2010 financial year and will, in effect, result in a
‘one-stop’ whole of Government reporting facility for motor vehicle crashes in
Western Australia.

Looking Ahead to 2010

MVPI Division plans include:

       x   A continued focus on improving motor vehicle personal injury claims
           management systems and processes. These improvements will
           increase productivity and enhance the Insurance Commission’s
           ability to respond to customers’ needs, particularly claimants, in a
           timely and efficient fashion. Our priority will be to implement
           technological solutions which take advantage of e-commerce and
           internet functionalities that enhance accessibility and utilisation of
           the scheme and promote a positive overall customer experience;

       x   A comprehensive program of works to upgrade our main business
           systems is planned to begin in the 2010 financial year. This work,
           which is anticipated to take a number of years to complete, will
           deliver additional functionality by building on the imaging and


                                                                                34
    workflow technology already embedded in the Motor Vehicle
    Personal Injury Division’s operations;

x   Attention will continue to be directed towards potential opportunities
    to expand the benefits provided under the existing CTP scheme
    with particular consideration to the concept of a no-fault, long-term
    care scheme for catastrophically injured motor vehicle personal
    injury claimants;

x   A research project undertaken by The University of Western
    Australia’s node of the Centre for Economic Research on Health
    (ACERH) and fully funded by the Insurance Commission is
    expected to be concluded by 31 December 2009. The outcome of
    this research is expected to provide a more comprehensive
    understanding of the current situation in Western Australia in
    relation to long-term care requirements for compensable and non-
    compensable parties, including the availability of resources and
    infrastructure both in metropolitan and country areas. This will
    facilitate a more informed and detailed evaluation of the potential
    cost, risks and benefits of implementing a no-fault long-term care
    scheme for catastrophically injured motor vehicle crash victims in
    Western Australia;

x   Maintaining efforts, in collaboration with Department of Transport to
    enhance the Transport Executive and Licensing System (TRELIS)
    to provide timely and accurate policy details, premium collection
    and associated statistical data;

x   Working with the independent Actuary to determine how the models
    for evaluating outstanding claims liabilities might be more
    responsive to actual claims experience, thereby enabling corrective
    strategies to be developed in a more timely manner;

x   Monitoring CTP Insurance schemes throughout the world to ensure
    best practice for all Western Australian motor vehicle owners;

x   Maintaining support for road safety programs aimed at preventing
    crashes that result in personal injury or death; and

x   Progress the substantial program of works in designing and
    developing new business systems which aim to simplify the
    integration and support requirements for the wide range of different
    technologies currently in use in the Division.




                                                                        35
2.4   RISKCOVER

      Objectives

            x    To be recognised by our customers as the best provider of risk
                 management and self-insurance services; and
            x    To take a leadership role in the minimisation of the cost of risk for
                 the Government of Western Australia.

      Overview

      The Insurance Commission of Western Australia Act 1986 authorises the
      Insurance Commission to:

            x    Manage and administer insurance and risk management
                 arrangements on behalf of Western Australian public authorities;
                 and
            x    Provide services, facilities and advice to public authorities in respect
                 of the management of claims against them or against funds
                 maintained or administered by them under any written law.

      The Government of Western Australia adopted a Managed Fund approach to
      administer all insurable risks of its public authorities who are RiskCover Fund
      members (agencies) on a self-insurance basis. The RiskCover Fund is
      underwritten by the Crown and is managed by the Insurance Commission on
      behalf of the Government of Western Australia and its participating agencies.

      RiskCover’s assets are not owned by the Insurance Commission and are
      therefore not consolidated in its financial results. The investment assets of
      RiskCover are, however, included in the investment pool of the Insurance
      Commission and are represented by a Floating Rate Promissory Note. (Refer
      to Note 40 of the Financial Statements).

      Outcomes

      RiskCover Fund Performance

      At 30 June 2009, the RiskCover Fund remains in a fully-funded position, with
      net assets of $49.9 million (2008: $102.5 million) after the provision of the
      refunds detailed below totalling $31.7 million.

      The RiskCover Fund’s result for 2009 was a $30.8 million loss (2008: $27.7
      million loss). This was largely due to the shared negative investment return of
      7.3% (before fees and expenses) which resulted in a reduction of $36.5
      million in the value of RiskCover’s share of the overall investment pool.

      The underwriting profit of $5.7 million reflected in the Income Statement for
      2009 was significantly better than the budgeted loss of $28.1 million. This
      turnaround however was mainly due to a positive Premium Adjustment of
      $62.1 million.


                                                                                       36
This Premium Adjustment reflects an increase in the estimated amounts of
additional premiums which will be charged to client agencies in future years.
Refer Note 40(b) for more detailed information on this year’s Premium
Adjustment.

Despite the Fund’s overall loss in 2009, its strong performance in prior years
enabled RiskCover to refund $9.9 million of Performance Adjustments in
respect of the Workers’ Compensation and Motor Vehicle insurance classes
in July 2008 to agencies with positive claims records.

RiskCover Fund members were further rewarded with a share of the $21.8
million Fund Experience Allowance via an offset against their 2009 Property
and Liability Fund Contributions.

RiskCover Service Delivery Model

RiskCover will only achieve its objectives through a collaborative approach
that delivers a total coordinated service to its clients. RiskCover has a Service
Delivery Model comprising the following areas:

Loss-prevention
      x Risk management program development and implementation
      x Data-analysis

Loss-minimisation
     x Claims management
     x Fund management

All areas are equally important to the future success of the RiskCover Division
and its clients. Each area is inter-dependent on the other. This inter-
dependency is reflected in the RiskCover Service Delivery Model.

                      RiskCover Service Delivery Model
                                       Risk Management -)


                         Risk Management              Fund Management
                         Program
                         DeveLopment
                         ImpLementation




                                             Agency
                                             Service
                                           Coordination




                         CLaims
                         AnaLysis




                         Loss Prevention   f- -3          Loss Minimisation    37
RiskCover’s Service Delivery Model is supported by the following Service
Delivery Strategies.

RiskCover Service Delivery Strategies

       x   Adopt a client-centric culture in the development and delivery of
           services;
       x   Ensure all services are targeted to client needs;
       x   Adopt consistent business processes to optimise service delivery;
       x   Build capability within agencies to achieve self-sufficiency in the
           management of their risks;
       x   Manage resources to achieve maximum value for the Government
           and agencies; and
       x   Manage the RiskCover scheme structure to minimise the cost-of-
           risk to Government.

Risk Management Services

The demand for RiskCover’s Risk Management services continues to grow at
an extraordinary pace, as agencies look to fully embrace risk-thinking into all
aspects of their business. No longer is risk management simply a compliance
issue and no longer is it optional.

Experience over recent years demonstrates that foreseen risks do eventuate.
Consequently, agencies should not only be doing everything reasonable to
prevent the risk occurring, but also, to minimise detrimental outcomes from
such risk.

Last year, RiskCover launched the web-version of RiskBase, which has
proven hugely successful in assisting agencies to embed risk management
into their ongoing management. RiskBase is provided to State Government
agencies as a means of capturing, reporting and most importantly using risk
information. This tool is provided to agencies free of charge, which achieves
significant savings for agencies compared to purchasing similar software. It
also achieves a consistent methodology across-government for identifying,
recording and managing of risk.

The majority of agencies have a current Business Continuity Plan appropriate
to maintaining their critical business functions in the event of a disaster. Many
agencies are now working through testing and refining these plans to ensure
their currency and operability.




                                                                               38
The risk management training program this year has included:

      x   Risk Management Fundamentals;
      x   Managing Contract Risks;
      x   Introductory Safety and Health Representatives Training;
      x   Business Continuity Management;
      x   Regional Training; and
      x   Government Risk Management Conference – ‘Risk Aware vs. Risk
          Averse Culture’.

Government projects continue to be a major source of risks which need to be
managed throughout the life of the project and be reflected in any contract
arrangements. The need for vigilance in understanding the risks associated
with forming new relationships and alliances has never been greater than
now, given the current economic climate and all that comes with this
instability.

The maturity of the WA public sector’s risk management practices are
progressing, with more agencies than ever embracing risk management as a
key element of all business practices. There is always room for improvement,
but it is widely recognised that agencies are well advanced in applying risk
thinking.

Data-Analysis Services

Claims-data-analysis is an integral part of the risk management process. It
helps to effectively identify across-government and agency-specific risks to
help minimise the cost of these risks.

During the year, RiskCover conducted numerous claims and data-analysis
activities across all classes of insurance cover types. RiskCover’s claims-
analysis services during 2009, included the following:

      x   Agency-specific utilisation reports and presentations       which
          highlighted a range of operational and strategic risks;

      x   Claims-data-analysis presentations which identified across-
          government and organisation-specific risk exposures, trends and
          benchmark targets;

      x   Across-government benchmarking which identified at-risk public
          agencies and enabled a quick assessment of agencies with higher
          claims frequencies and/or higher average costs per claim; and

      x   A range of data-analysis services were provided to identify risk-
          prevention and risk-minimisation opportunities.

RiskCover continues to strive to ensure that the information requirements of
agencies are met. In keeping with our ongoing commitment to improve


                                                                          39
products and services, RiskCover’s data warehouse, analysis and reporting
tools, continue to be enhanced.

Claims Services

Workers’ Compensation and commercial claims management represents the
largest part of RiskCover’s operations. RiskCover is focused on delivering
quality, cost-efficient claims management in partnership with our client
agencies.

Workers’ Compensation forms a large part of RiskCover’s claims
management portfolio. Considerable focus is given by RiskCover to provide a
service that integrates injury prevention, injury management and claims
management. Through proactive claims management and specialist injury
management advice and training, RiskCover continues to promote the
importance of injury management to client agencies. In addition to the regular
training programs, we work with individual agencies to tailor services to meet
their specific needs. RiskCover continues to enhance claims management
processes to: better support agencies’ injury management systems; improve
return-to-work outcomes; and reduce claims costs.

We are working closely with the Department of Commerce through the Public
Sector Occupational Safety and Health (OSH) and Injury Management
Project. The Project is supporting agencies to meet OSH reporting
requirements and to comply with the Code of Practice: Occupational Health
and Safety in the Western Australian Public Sector 2007.

RiskCover also manages a variety of commercial claims including, but not
limited to, property and business interruption; general, professional and
medical treatment liability; motor vehicle; personal accident; travel; industrial
disease; Workers’ Compensation supplementation and WorkCover WA
General funds. Commercial claims management ranges from minor to large
loss situations; such as replacing/repairing damaged property; organising
timely and quality repairs; defending and resolving liability actions for
treatment liability; employment practices liability; port liability; asbestos
liability; and major contractual damages disputes. As part of RiskCover’s
commercial claims management service, we provide a whole of State
insurance response in respect of WA Government risks, to catastrophic
losses such as cyclones, bushfires and floods.

RiskCover’s claims management service provides agencies with access to a
wide range of expert claims management advice and external support, from
RiskCover accredited assessing, loss adjusting and legal panels. RiskCover
has extensive experience and expertise in managing commercial claims to
ensure that equitable and value for money outcomes are achieved by
agencies.




                                                                               40
RiskCover Claim Payments by Insurable Risk for 2009


                             Misc, 1%.$O 6M

              Motor, 8%, $1 23M


         Liability, 14%,
            $2OOM




                                                  Workers'
                                               Compensation. 59%.
       Property, 18%'
                                                    $85.OM
          $27 5M




Claims payments in all classes except for the Miscellaneous class were
higher than projected. They were significantly higher than projected in the
Motor and Property classes, with payments being 58.5% and 35.8% greater
than expected.

Fund Services

RiskCover Fund Contributions by Insurable Risk for 2009


                            Misc, 1%,$1IM

               Motor, 6%, $93M


         Li biIity, 18%,
            $25 8 M




                           iIiiiiiiiiii
                                                       Workers*
                                                 Compensation, 56%
                                                       $82 1 M
           Property, 19%,
               $27.3 M




                                                                         41
At 30 June 2009, RiskCover maintained a Prudential Reserve of $43.7 million.

The RiskCover Fund provides its members with a ‘Fund Experience
Allowance’ (i.e. a return of capital) whereby surplus funds in excess of the
approved Prudential Reserve are returned to them. A total of $21.8 million
was returned to Fund members in 2009 by way of the Fund Experience
Allowance.

Coverage

RiskCover continues to provide extensive cover for the majority of State
Government insurable risks, including:

      x   Workers’ Compensation;
      x   Property and Business Interruption;
      x   Liability, including General, Professional, Medical Treatment and
          Employment Practices Liability;
      x   Motor Vehicle Property Damage; and
      x   Miscellaneous, including Travel, Personal Accident and Special
          Covers.

Some of the benefits that the RiskCover Fund provides include:

      x   Extensive coverage;
      x   Cost-efficient administration in comparison to other funding
          methods;
      x   Consistent and systematic approach to risk management across the
          State Government;
      x   Consistency in claims and injury management; and
      x   Buying power in reinsurance markets.

To view RiskCover’s Fund Contributions Pricing Policy, refer to the Pricing
Policies of Services Provided section of this Annual Report.

Looking Ahead to 2010

RiskCover plans include:

      x   Implementation of RiskCover’s preferred option for the replacement
          of its core insurance and peripheral systems. The Project is not
          expected to be completed before 2012;

      x   Implementation of a web-based Customer Relationship
          Management System to assist with the effective and efficient
          delivery of service to RiskCover Fund members;

      x   Implementation of a new client service delivery methodology
          designed to meet agency needs;



                                                                          42
            x   Continuing to work on expansion of the existing data-analysis
                capabilities;

            x   Continuing to provide risk consultancy services to agencies,
                working at Strategic, Operational and Project levels with a focus on
                business continuity planning; and

            x   Continuing to roll out the web-version of RiskBase to agencies, and
                supporting the ongoing use of RiskBase.


2.5   OTHER FUNDS AND BUSINESSES MANAGED BY THE RISKCOVER
      DIVISION

      Compensation Industrial Diseases Fund (CIDF)

      Industrial Diseases insurance is compulsory for employers engaged in mining.
      Liability is limited to Workers’ Compensation payments for the respiratory
      diseases of pneumoconiosis, lung cancer and mesothelioma, all of which may
      arise from exposure to harmful mineral dust in the course of employment.

      The CIDF has been in surplus for many years and it is expected that this
      situation will continue. Due to its sound financial status, from 1 July 2003 the
      premium rate was reduced to a flat charge of $100 per three-year policy
      period. Following a review of the financial performance of the Fund and
      projected future claims, WorkCover WA decided to maintain this premium rate
      for a further three years commencing 1 July 2009.


      Insurance Commission General Fund (ICGF)

      The claims paid from the ICGF relate to liabilities of the former State
      Government Insurance Office (SGIO). This Fund is in run-off and no policies
      have been issued since 31 December 1986. The run-off process will continue
      to be prolonged due to the claims being asbestos-related.

      Employers’ Indemnity Supplementation Fund (EISF)

      WorkCover WA manages the EISF, as the Insurance Commission has a
      statutory responsibility to process claims against this Fund. Liabilities under
      the EISF include asbestos and non-asbestos-related claims. Some of the
      EISF liabilities are from the collapse of the HIH Group of Companies (HIH) in
      March 2001. The EISF finances claims for workers injured in the course of
      their employment prior to 15 March 2001 where their employer was insured by
      HIH.

      CGU Workers’ Compensation Claims, an Insurance Australia Group (IAG)
      company, manages all claims in relation to the collapse of HIH on behalf of
      the Insurance Commission in consequence of an agreement with the HIH
      liquidator. In discharging its statutory obligations, the RiskCover Division


                                                                                    43
      continues to provide an important supervisory role in the management of
      ongoing claims and it is expected that this role will continue for a number of
      years. WorkCover WA reimburses the Insurance Commission for all payments
      and expenses incurred in respect of the management of EISF claims.

      Government Insurance Fund (GIF)

      The GIF is a consolidation of the State Government’s superseded self-
      insurance arrangements which preceded RiskCover. The Fund is in run-off
      and the RiskCover Division manages it on behalf of the Department of
      Treasury and Finance. The financial aspects of the GIF are reported in the
      Insurance Commission’s Financial Statements; however, the Insurance
      Commission is indemnified by the Government of Western Australia for any
      liabilities arising in the GIF.

      Community Insurance Fund (CIF)

      The CIF provided eligible incorporated not-for-profit community organisations
      based in Western Australia with ‘affordable’ insurance cover, particularly
      public liability cover. The CIF which was underwritten by the Government of
      Western Australia was managed by the Insurance Commission’s RiskCover
      Division. The CIF ceased operations (with Minister approval) from 31 January
      2009 and the run-off of any claim liabilities that may arise will be managed by
      the RiskCover Division.

      The CIF delivered not-for-profit organisations with a valuable resource during
      a period where insurance coverage from the private insurance industry could
      not reasonably be achieved.

      State Government Insurance Corporation

      The RiskCover Division is responsible for managing the run-off business in
      relation to the State Government Insurance Corporation which is a wholly-
      owned subsidiary of the Insurance Commission. The Corporation remains in
      existence mainly to run-off small lines of Australian and overseas inwards
      reinsurance business it wrote between 1988 and 1992.


2.6   SPECIAL INVESTIGATIONS

      Objectives

      The principal focus for the reporting period was on the ability of the Special
      Investigations Division (SID) to utilise its analytical component to proactively
      increase the Insurance Commission’s fraud detection rates.

      Overview

      A specific detection effort was directed at a number of service providers
      involved in the care of catastrophically injured motor vehicle crash claimants.


                                                                                    44
A United Kingdom based analytically oriented Forensic Psychologist was
engaged to provide advice for the enhancement of the Insurance
Commission’s automated fraud profiling systems. Planning and organising
work based on the recommendations provided was completed preparatory to
the requisite systems development to be undertaken.

Fraud detection processes of the SID were examined by the Insurance
Commission’s     Internal   Auditors. Recommendations   on   potential
enhancements to the detection process, through improved system-based
procedures, are being actioned.

The Insurance Commission’s SID also provides an asset-protection service.
The SID protects personnel, information and property, and identifies and
investigates suspected criminal fraud and kindred matters on behalf of the
insurance business divisions. It also conducts ‘trace and locate’ investigations
of parties associated with claims. These investigations facilitate equitable
settlements and assist in the recovery of costs arising through breaches of
warranty. Some investigations are undertaken to establish facts which assist
in determining liability. Evidence is also assembled to support the defence of
matters addressed by the Insurance Commission’s legal counsel.

The SID has contracts in place with 22 firms of loss adjusters and private
investigators. These service providers assist with identifying and investigating
suspected fraud and kindred matters. The Manager SID chairs the Insurance
Commission’s Loss Adjusters and Private Investigators Committee and
addresses any issues arising from these contracts.

The Manager SID also liaises with the Corruption and Crime Commission to
notify them of all reportable matters falling within the scope of the Corruption
and Crime Commission Act 2003. He is one of the Insurance Commission’s
two designated Public Interest Disclosure Officers tasked with reporting and
monitoring responsibilities in accordance with the Public Interest Disclosure
Act 2003.

Outcomes

A focused effort, involving analytical and investigative resources, resulted in a
referral to WA Police, for prosecution, 152 matters, alleging fraud against a
number of professional carers of a catastrophically injured motor vehicle
personal injury claimant. By the close of the financial year, 58 convictions
have resulted. Additionally, a further four individuals were the subject of briefs
referred to the WA Police, for prosecution of fraud and attempted fraud related
to motor vehicle personal injury and Workers’ Compensation claims. Prior to
referral to the WA Police, potential criminal briefs of evidence are vetted by
the State Solicitor's Office.

Investigations work conducted into several potentially high value claims were
successfully concluded during the year, and will afford substantial claims
savings upon settlement. Actual investigations related claims savings for the
year exceeded one million dollars in value.


                                                                                45
2.7   INVESTMENTS

      Objectives

            x    To optimise investment returns, without incurring additional risk,
                 through diversification of both investment assets and managers;
            x    Achieve a rate of return for each asset class that:
                     - Is focused on maintaining a long-term absolute return
                       overall; and
                     - Exceeds the relevant performance benchmark.

      Overview

      The Insurance Commission’s investment strategy is based on the need to
      broadly match its investment assets to the claims liabilities for both the Third
      Party Insurance Fund and the RiskCover Fund. In setting our investment
      strategy, we continue to focus on achieving consistent, long-term positive
      returns that exceed benchmark, balanced with reducing the overall level of
      volatility of investment returns.

      The Insurance Commission’s Board determines investment strategy,
      investment manager appointments and other key investment portfolio
      construction issues including strategic and tactical asset allocation. The
      Board consults with an independent investment consultant and receives input
      from the Investments Division.

      Our investment manager configuration is achieved through a combination of
      external and internal management of assets. The Treasurer of Western
      Australia approves external investment manager appointments.

      The Prudential Guidelines for Investments (Guidelines) issued by the
      Treasurer of Western Australia are the guiding principles followed by the
      Board in managing the Insurance Commission’s investment assets. The
      Guidelines are regularly reviewed and updated (last revision April 2009) and
      can be viewed on the Insurance Commission’s website www.icwa.wa.gov.au.

      Outcomes

      Investment Markets

      The US sub-prime mortgage crisis that commenced in 2008 progressively
      spread to impact all areas of the global financial system in 2009. The US
      banking system was first to be impacted upon. Events took a turn for the
      worse in September 2008, with the bankruptcy of investment bank Lehman
      Brothers. Despite the US taking quick action to introduce subsequent
      stabilisation and bail-out programs, the deterioration in financial markets
      during October 2008 resulted in the crisis rapidly spreading around the globe.
      Banks in Iceland, Ireland and the UK, were all impacted as liquidity froze in
      the banking sector, and more broadly, international credit markets.



                                                                                    46
The impact on global share markets was savage, declining 17% during
October 2008. By this time financial markets were trapped in a negative spiral
with rapid de-leveraging by over-extended borrowers spurring further panic
sell-offs in many asset classes. The Australian dollar was a major casualty as
investors literally dumped the currency on expectation of declining interest
rates and much slower or negative growth. Even the most experienced of
market commentators were shocked by the extent and speed of the financial
market declines.

Fearing that the banking crisis could result in an economic slowdown of
similar dimension to the Great Depression, governments around the world
responded quickly. Governments announced the guaranteeing of banking
deposits for two years and the nationalisation of financial services entities
became a daily occurrence. What followed was a continuum of lower interest
rates and government spending initiatives as monetary authorities and
governments united to stave off the possibility of a severe economic
contraction resulting from the financial crisis.

The turnaround in extremely negative sentiment came in early March 2009
when it was reported that major US banks had traded profitably for the first
two months of 2009. This piece of news marked a turning point in investor
sentiment and the commencement of a strong global share market rally. By
the financial year end, the volatility experienced during the financial year had
settled and major share markets had recovered in excess of 30% from the
lows reached in early March 2009.

Insurance Commission Investment Performance

Despite being well diversified and invested in quality assets the Insurance
Commission’s investment portfolio did not escape the fallout from the resulting
volatility of the global financial crisis. While it is never pleasing to report a
negative return, relative to peer group portfolios and its underlying benchmark
the portfolio did perform credibly. For the financial year the Investment
Portfolio returned negative 7.3% before fees and expenses compared with the
underlying benchmark return of negative 8.4%, an active out-performance of
1.1%. The return net of fees and expenses for the year was negative 7.8%
which compares favorably with the Mercer Pooled Fund Survey return of
negative 12.5% for peer funds.             This confirms that the Insurance
Commission’s long-term focused investment strategy is delivering solid
results.




                                                                               47
                                                Growth in Investment Assets from 1999 to 2009
          $'m

        $3,500

        $3,000

        $2,500

        $2,000

        $1,500

        $1,000

                     $500

                       $0
                        1999          2000      2001      2002    2003      2004       2005          2006      2007     2008    2009




                                                Investment Returns for 10 Years to 30 June 2009
                     35.0%
                                                    Insurance Commission   Benchmark
                     30.0%

                     25.0%

                     20.0%
 Annualised Return




                     15.0%

                     10.0%
                      5.0%

                      0.0%
                      -5.0%

                     -10.0%
                     -15.0%
                               2000      2001      2002    2003   2004     2005    2006       2007      2008     2009    5 Yr   10 Yr
                                                                                                                         Avg    Avg




All of our investment managers found the volatile investment environment
which existed throughout 2009 extremely challenging. Two asset classes,
Fixed Interest and Cash, delivered a positive return over the year, while the
remaining asset classes delivered negative returns.

Australian Shares

Relative to major markets overseas, the Australian share market was harshly
impacted during the sell-off over the first eight months of the financial year. At
the low point on 9 March 2009 the market was down 55.0% from its all-time
high set in October 2007 and down 41.3% from the close at 30 June 2008.
These figures set historical records for bear-market downturns. Major selling
was experienced in resource stocks as investors took a dim view on future
prospects for global growth. In addition, companies with weaker balance
sheets were sold aggressively. Although the banking sector suffered a major
sell-off, it performed better than overseas counterparts based on superior
fundamentals.

Since the low point in early March 2009, the Australian share market recovery
was swift, rising 26.9%. For the year to 30 June 2009 the Australian Shares


                                                                                                                                   48
Portfolio recorded a decline of 17.0%, out-performing its underlying
benchmark by 3.4%.

Global Shares

The Global Shares component of the Portfolio recorded a decline of 22.5% for
the financial year. This performance was 6.2% below the underlying
benchmark return of negative 16.2%, due to the impact of a sharply lower
Australian dollar on the Insurance Commission’s Global Shares hedging
strategy.

Property

Following a strong prior year, the Property Portfolio recorded a negative 4.6%
return. While performance of the Property Portfolio was adversely impacted
by a slowdown in the Perth property market and in retail property nationally,
performance was still nevertheless 8.0% ahead of its underlying benchmark.

Fixed Interest

For the second consecutive year the Fixed Interest component of the Portfolio
(Australian Fixed Interest, Global Fixed Interest and Inflation Linked Bonds)
has proved the worth of the inclusion of defensive asset class exposure in the
Total Portfolio. While difficult credit markets resulted in the Fixed Interest
Portfolio under-performing its benchmark by 1.2%, this was still a pleasing
outcome in an extremely irregular environment. For the year the Fixed
Interest Portfolio delivered a positive 7.5% return.

Alternative Assets

The investment in the Alternative Assets component of the portfolio did not
meet expectation for the year due to unexpected losses from the Hedge Fund
and Infrastructure investments. This was a disappointing outcome from an
asset class that had promised to deliver non-correlated returns to traditional
asset classes. The combined result saw Alternative Assets recording a
negative 7.7% return for the year.

Cash

In a difficult year Cash was the second-best performing asset class for the
Insurance Commission returning 3.4%. Official interest rates were reduced
significantly during the course of the year which consequently lowered the
overall return. An additional cash buffer was maintained in the Portfolio
during most of the year to provide for any unforeseen liquidity requirements of
the insurance business.




                                                                             49
Currency Hedge for Global Shares

The Insurance Commission passively hedges 100% of the US dollar exposure
to its global long/short equities portfolio and 50% of the balance of the Global
Shares Portfolio, excluding emerging markets. The performance of the
currency hedge can vary considerably with movement in the Australian dollar.
In prior years the hedge has provided significant income when the Australian
dollar has appreciated. For the 2009 financial year the 15.8% decline in the
Australian dollar resulted in a loss of $44 million from the currency hedge.
This detracted 10.0% from the return of the Global Shares Portfolio.

                               Investment Asset Class Returns 2009

20.0%
                 Insurance
15.0%
                 Commission
10.0%            Benchmark

 5.0%

 0.0%

 -5.0%

-10.0%

-15.0%

-20.0%

-25.0%
         Australian   Global Shares   P roperty   Aust Fixed   Global Fixed   CP I Bonds   Alternative   Cash    Overall
          Shares                                   Interest      Interest                    Assets             P ortfolio



Asset Allocation

The long-term Strategic Asset Allocation of the Investment Portfolio is formally
reviewed by the Board of Commissioners with the assistance of its investment
consultant every three to four years.

There were no changes to the Strategic Asset Allocation over the past year
with the neutral allocations to Growth and Defensive Assets remaining at 70%
and 30% respectively. The actual Asset Allocation split as at 30 June 2009
between Growth and Defensive Assets was 76.1% / 23.9%. The departure
from the neutral strategic allocation reflects a medium term tactical decision
taken by the Board to further develop two key properties within the internally
managed Property Portfolio.




                                                                                                                    50
             Strategic Asset Allocation                      Actual Asset Allocation
                as at 30 June 2009                             as at 30 June 2009

                            Cash                            Global CPI Bonds Cash
        Global     CPI Bonds 4%
                                                             Fixed            4%           Aust
         Fixed        4%                 Aust                          3%
                                                           Interest                       Shares
       Interest                         Shares
                                                              4%                           25%
          6%                             28%
                                                  Aust Fixed
Aust Fixed
                                                   Interest
 Interest
                                                     10%
   12%




                                                                                             Global
                                                                                             Shares
        Property                       Global                                                 15%
          18%                          Shares              Property
                     Alternative                                                    Alternative
                                        20%                  33%
                      Assets                                                         Assets
                         8%                                                             6%


Investment Managers

The table below lists the Insurance Commission’s investment managers for
each asset class.

Asset Class                        Investment Managers

Australian Shares                  BGI Global Investors

                                   Concord Capital

                                   Integrity Investment Management

                                   Solaris Investment Management

Global Shares                      Holowesko Global Fund

                                   Marathon Asset Management

                                   Wellington Management

                                   Genesis Emerging Markets Trust

                                   Genesis Emerging Markets Opportunities Fund

Property                           Insurance Commission of Western Australia

                                   Queensland Investment Corporation (Retail Property)

Fixed Interest                     BGI Global Investors (Australian Fixed Interest)

                                   Colonial First State (Composite Fixed Interest)


                                                                                                      51
                      Insurance Commission of Western Australia (Inflation-
                      Linked Bonds)

                      Hastings Funds Management (High-Yield Fixed Interest)

                      Mondrian Investment Partners (Global Fixed Interest)

Alternative Assets    AMP (Infrastructure)

                      GMO Australia (Hedge Fund)

                      Apostle Aurora (Hedge Fund)

Cash                  Insurance Commission of Western Australia

Currency Overlay      Macquarie Funds Management

Investment Manager Changes

There were a number of changes to the manager line-up during the financial
year. Solaris Investment Management was appointed to replace Challenger
Managed Investments as an Australian Shares Manager in March 2009. In
the Alternative Assets component of the portfolio there were two Hedge Fund
Manager changes with the liquidation of holdings in the Warakirri Absolute
Return Fund and the Apostle Aurora II Australia Fund. As at 30 June 2009
the Apostle Aurora redemption was still in progress.

Environment, Social and Governance Factors

The Insurance Commission takes its Environmental, Social and Governance
(ESG) investment responsibilities very seriously and has in place a monitoring
process to ensure that its appointed Managers are effectively dealing with
ESG-related issues. Ongoing reporting and bi-annual review meetings over
the past year have confirmed that the appointed Managers have been pro-
active in dealing with such matters as appropriate. While there may be
differences in approach and style between individual Managers, the Board is
satisfied that all Managers have demonstrated sufficient consideration of ESG
factors and the consequent impact on investment risk and return.




                                                                             52
2.8   COMMUNITY FOCUS

      One of the Insurance Commission’s statutory functions is to provide financial
      support for programs that relate to the insurances it provides. Section 6(e) of
      the Insurance Commission of Western Australia Act 1986 reads:

      The functions of the Commission are to initiate, or participate in, and promote
      programs and schemes for:
            o Research into the treatment of industrial diseases and personal
                injury; and
            o Research into, education for, and promotion of public awareness
                relating to the prevention of industrial diseases, personal injury and
                accidental death;

      being programs and schemes relevant to risks in respect of which the
      Insurance Commission is to provide insurance.

2.8.1 Road Safety Partnerships

      The Insurance Commission is fully committed to the Western Australian Road
      Safety strategy, Towards Zero, and contributes funds annually to the State
      Government’s Office of Road Safety. The provision of funding for road safety
      programs is a key risk management strategy to help control Motor Vehicle
      Third Party Personal Injury Insurance claims costs.

      The Insurance Commission’s Managing Director is a statutory member of the
      Road Safety Council of WA. As an organisation, the Insurance Commission is
      committed to working closely with the Office of Road Safety, the administering
      body of the Road Safety Council, on the planned annual funding program.

      For the 2009 year, the Insurance Commission committed $3.2 million for road
      safety programs in partnership with the Office of Road Safety, of which $2.8
      million was expensed in the year.

      Details of some of the programs are listed below:

            x   Managed by School Drug Education and Road Aware (SDERA),
                Road Aware is a state-wide, cross-sectoral road safety schools
                program.

                In the 2009 year, this program received $1.7 million in funding.

                Road Aware currently consists of three overlapping programs:
                  - Road Aware Parents: ‘Smart Steps’ for parents and carers of
                     0 - 4 year olds.
                  - Road Aware Kids: ‘Challenges and Choices’ for early, middle
                     and upper Primary School (4 - 15 year olds).
                  - Road Aware Drivers: ‘Keys for Life’ for 15 - 20 year olds.




                                                                                    53
          All these programs are offered to all schools, pre-schools and child-
          care centres throughout Western Australia.

      x   The Insurance Commission funds two projects that address access
          and equity. Both of these are managed by the Department of
          Transport.

          Access and Equity programs received $531,000 funding in 2009, to
          undertake:
             - The Indigenous Licensing Project Warburton; and
             - The Phase II Access and Equity Project.

      x   RoadTrip 120, the State’s Supervised Driving Benefits Community
          Education Campaign was funded to an amount of $200,000.

      x   The ‘Belt Up Sports Sponsorship’ exposes the ‘Belt Up’ message
          through the football community throughout rural and regional
          Western Australia and at the State’s elite level.

          2009 saw a shift in the partnership from the West Australian
          Football League (WAFL), to providing a more comprehensive
          partnership with the West Australian Country Football League
          (WACFL) and its affiliated clubs and leagues.

          This sponsorship received $505,000 in funding in 2009.

      x   The Insurance Commission of WA Road Safety Conference and
          Awards commenced in 1997 as a two-day conference and gala-
          evening awards ceremony. The Conference enables Western
          Australia’s key road safety stakeholders to gather and share
          information and knowledge on research findings. The Awards
          recognise outstanding road safety initiatives and projects that have
          been implemented.

          In November 2008, the event commenced with a one-day Forum
          featuring keynote speakers and a series of concurrent sessions of
          short presentations from academic researchers and providers of
          community road safety programs.

          The Forum was then followed by the Insurance Commission of WA
          Awards for Road Safety which encourage, recognise and reward
          innovation and community participation in road safety. A total of 28
          submissions were received for the Awards across eight categories.
          Media awards were also included in 2008.

In addition to the partnership with the Office of Road Safety, more than
$189,000 was provided to Yirra Yaakin Aboriginal Corporation to fund the final
year of the Aboriginal road safety play and workshop entitled ‘Muttacar Sorry
Business’. The play was written, produced and toured by Yirra Yaakin, one of
Australia’s leading Indigenous theatre companies.


                                                                             54
      The 2009 Tour visited 24 communities throughout Western Australia. The 53
      performances spread the road safety message to 3,915 people, of which 29%
      (1,139 people) were Indigenous.

2.8.2 Medical Research Into Mesothelioma

      For many years, the Insurance Commission has committed to being a long-
      term supporter of medical research into mesothelioma (an asbestos-related
      disease) as this research is relevant to the Compensation (Industrial
      Diseases) Fund, a fund managed by the RiskCover Division.

      In 2009, $317,000 (excluding GST) was committed to the Foundation for
      Advanced Medical Research and The University of Western Australia, as part
      of a four-year funding commitment for research into mesothelioma. The term
      of this Funding Deed is 1 July 2006 to 30 June 2010 (i.e. four financial years
      which commenced in the 2007 financial year).

      Professor Bruce Robinson and his team at the Department of Medicine at Sir
      Charles Gairdner Hospital undertake this important research. Independent
      peer review of the research is carried out annually.


3.0   SIGNIFICANT ISSUES IMPACTING THE AGENCY


3.1   CHANGES IN WRITTEN LAW

      Following a review of the Motor Vehicle (Third Party Insurance) Regulations
      1962 in late 2008, these Regulations were updated and submitted for
      Ministerial approval.

      On 26 June 2009, the new Motor Vehicle (Third Party Insurance) Regulations
      2009 were published in the Government Gazette. The new Regulations do not
      change the way we operate, rather they are now a true reflection of what we
      do, as opposed to the previous Regulations which had become obsolete and
      mostly irrelevant.


3.2   ENSURING OUR FUTURE - EMPLOYEE ATTRACTION AND RETENTION

      The stability of our workforce, with the resultant accumulated knowledge and
      experience, is acknowledged as a significant factor in the Insurance
      Commission’s success.

      To ensure our future success we have for some time recognised the need to
      plan for generational change, as an increasing proportion of our most
      experienced employees are either approaching or have already passed the
      minimum statutory retirement age.




                                                                                  55
      These plans were impacted by the sustained employee attraction and
      retention challenges arising out of the strong economic climate. This resulted
      in a loss of experienced employees, and an inability to attract sufficient
      numbers of suitably qualified and experienced replacements, which led to a
      continuing decline in our average employee experience levels.
      The shift in the economic cycle in the latter part of the financial year saw the
      labour supply shortage ease somewhat; however, skill shortages in
      occupations relevant to our business needs remain.

      Additionally, a number of major innovative business process improvement
      projects required the deployment of experienced employees into long-term
      project teams. This further depleted operational experience levels.
      Consequently, balancing competing operational and project resource needs,
      remains a risk to the commencement or completion of these important
      initiatives.

      Notwithstanding the uncertain economic environment, we have maintained
      focus on our long-term goal of being ‘A Great Place to Work’, to position us for
      the future.

      Strategies to replenish experience levels and to ensure a long-term supply of
      skills and experience included:

             x   Continuation of our Graduate Development Program;
             x   Indigenous and Youth Traineeships;
             x   The creation of knowledge transfer roles;
             x   Personal Injury Claims Trainee Programs;
             x   Structured succession planning; and
             x   Participation in employment expos in alternative labour markets.

      Retention of existing valued employees remained a priority throughout the
      year, resulting in an improvement in employee retention rate to 92% (2008:
      86%). In the latter part of the year, these strategies also contributed to a slight
      improvement in average employee experience levels, up from 11.8 years
      (2008) to 12.3 years (2009).

      The Insurance Commission competes primarily in the financial services
      employment market for skilled and experienced employees. A priority for
      2010, will be to ensure that the statutory and workplace relations framework
      governing the Insurance Commission, is appropriate to the commercial needs
      of a substantial Government Enterprise.


3.3   MOTOR VEHICLE PERSONAL INJURY CLAIM TRENDS

      The reducing claims frequency trend experienced over the past 15 years
      continues, with a total of 4,078 new claims received in 2009, which is
      approximately 3% lower than the number for the preceding year (4,195). A
      continued strong focus on road safety and crash-prevention initiatives, safer



                                                                                       56
      cars, and better roads, are some of the recognised factors influencing this
      pleasing, long-running, downward trend.

                                                Claims Frequency and Number of Active Claims

                                12,000                                                                                              6.0




                                                                                                                                          Claim Frequency per 1,000 vehicles
                                10,000                                                                                              5.0
      Number of Active Claims




                                 8,000                                                                                              4.0

                                 6,000                                                                                              3.0

                                 4,000                                                                                              2.0

                                 2,000                                                                                              1.0

                                    0                                                                                               0.0
                                         1999    2000   2001    2002      2003      2004    2005    2006      2006    2008   2009
                                                                                    Years

                                                               Number of Active Claims             Claims Frequency




3.4   RISKCOVER RISK MANAGEMENT AND CLAIM TRENDS

      Workers’ Compensation claims costs within the RiskCover Fund have
      continued to increase over the past 12 months. This trend is in part
      attributable to the ongoing impact of the amendments made to the Workers’
      Compensation and Injury Management Act 1981 in November 2004, and an
      increase in the RiskCover Fund’s real exposure, measured in terms of total
      declared wages.

      RiskCover has been assisting agencies to embed a risk management culture
      into their business over several years. There is continuous growth in the use
      of risk management techniques by agencies to help manage successful
      outcomes. Many agencies are realising the benefits of having a clear
      understanding of their risk issues and using the risk information to inform their
      decision-making. RiskCover will continue to work with agencies to integrate
      risk management into management practices. Project and contract risk
      management is an area where demand for RiskCover’s services continues to
      grow.


3.5   BELL RECOVERY ACTION

      The trial of the Bell Recovery Action, instituted by the Court-appointed
      Liquidators to the failed Bond Corporation conglomerate, commenced in the
      Supreme Court of Western Australia on 22 July 2003 and concluded on 22
      September 2006. Final judgment in the Supreme Court Action was handed
      down on 30 April 2009 with the Liquidators being successful in obtaining
      orders for recovery of in excess of $1.6 billion from a syndicate of 20 banks
      led by Westpac Banking Corporation and Lloyds Bank plc of London. The
      Judgment in the Bell Recovery Action is the subject of appeal processes.



                                                                                                                                          57
      The Insurance Commission, as an indemnifying creditor, continues to provide
      financial support to the Bell Group Liquidators in their recovery efforts.

      In order to minimise the impact of financing the Bell Group Liquidators, an
      insurance program was put in place prior to the commencement of the
      Supreme Court trial and this remains in place. During the year to 30 June
      2009, the Insurance Commission advanced a further $11.6 million (2008: $3.2
      million) to fund the prosecution by the Bell Group Liquidators of their claim
      against the Banks.


4.0   DISCLOSURES AND LEGAL COMPLIANCE


4.1   FINANCIAL STATEMENTS

      Refer to the separate Financial Statements section of this Annual Report.


4.2   KEY PERFORMANCE INDICATORS

      Refer to the separate Performance Indicators section of this Annual Report.


4.3   MINISTERIAL DIRECTIVES

      Section 10 of the Insurance Commission of Western Australia Act 1986
      empowers the Minister responsible for the Insurance Commission to give
      directions in writing to the Insurance Commission with respect to its functions;
      powers and duties, either generally or with respect to a particular matter. The
      Insurance Commission is then required to give effect to those directions and
      to include the text of any direction received in its Annual Report.

      The Insurance Commission did not receive any ministerial directives during
      2009.


4.4   OTHER FINANCIAL DISCLOSURES

4.4.1 Pricing Policies of Services Provided

      Pricing Policy of CTP Insurance (Motor Vehicle Personal Injuries)

      To comply with Section 3T of the Motor Vehicle (Third Party Insurance) Act
      1943, the Insurance Commission is required to, at least once in each financial
      year, make an assessment of the extent to which the premium revenue,
      together with other income expected to be received, will be sufficient to meet
      the claims, costs and other expenses anticipated to arise or be incurred.




                                                                                    58
     In making this assessment, an independent actuarial report is considered,
     together with any accumulated surplus or deficit existing in the Third Party
     Insurance Fund. Following this process, should a change in the Schedule of
     Premiums be required, the Board of Commissioners makes a
     recommendation to our Minister, the Treasurer, (for the Schedule of
     Premiums, refer to the Government Gazette, 12 May 2009, No 80; Reference
     IT402 on pages 1543 - 1546).

     RiskCover Fund Contributions Pricing Policy

     Fund Contributions are set to ensure that sufficient funds are collected to pay
     for all liabilities. The key outcomes that RiskCover aims to achieve in setting
     premiums are:

            x   Equity for all public authorities;
            x   Transparency in the Fund Contributions setting methodology;
            x   Minimum cross-subsidisation;
            x   Protection against major surprises; and
            x   Incentives for risk management.

     As agreed with the Department of Treasury and Finance, claims costs used to
     determine Fund Contributions do not include a prudential margin as the
     Government of Western Australia underwrites the Fund.

4.4.2 Capital Works

     Major Capital Projects Completed

     Development of Phase 1 of the On-line Crash Reporting Facility, which
     provides customers with a convenient web-based facility for reporting crashes
     where personal injury is involved, was successfully implemented in January
     2009. The original budgeted cost of the project was $890,000. Final cost of
     the project was $1.6 million, with the additional $753,000 being approved by
     the Board of Commissioners.

     Major Capital Projects Incomplete

     Development of Phase 2 of the On-line Crash Reporting Facility, which
     accepts property damage reports and facilitates access to those reports to
     interested parties (WA Police and Main Roads WA), is due to be completed in
     October 2009. The estimated total cost of the project is $0.7 million, and the
     estimated cost to complete the project at 30 June 2009 is $0.6 million.

     The development of 167 St George’s Terrace (Westralia Plaza) is due to be
     completed in August 2010. This is nine months later than the originally
     expected completion date of November 2009 due mainly to site access
     difficulties and weather delays. The estimated total cost of the project is $63.6
     million, and of the estimated cost to complete the project, $37.5 million was
     still outstanding at 30 June 2009. For information regarding the capital



                                                                                    59
     commitments of this project for the next 12 months, refer Note 34 (a) of the
     Financial Statements.

4.4.3 Employment and Industrial Relations

     Our people goal is simply ‘A Great Place to Work’.

     A major supporting strategy to achieve this goal is the integration of our Core
     Values into everything we do. These Core Values help shape our corporate
     culture by providing simple anchor points to guide our decision-making and
     our interaction with each other, clients and stakeholders.

     Profile of our workforce

      Employee Profile                          2008     (FTE)     2009    (FTE)
      Permanent Full-Time                        273      (273)     285     (285)
      Permanent Part-Time                         43    (24.5)        52  (26.5)
      Fixed Term Full-Time                        30        (30)     21       (21)
      Fixed Term Part-Time                         5       (2.6)       4     (2.7)
      Casual                                       1         (1)       0       (0)
      Seconded Out                                 0         (0)       0       (0)
      Totals                                     352   (331.1)       362 (335.2)
     Full-time equivalents shown in brackets.

     Industrial and Workplace Relations

     The Insurance Commission’s General Agreement was replaced in November
     2008 after the Government and CPSU/CSA reached an agreement on the
     whole-of-government General Agreement in September 2008. The eight
     month delay in finalising the whole-of-government Agreement and subsequent
     salary increases may have contributed to our attraction and retention issues.
     In accordance with State Government Policy, the Insurance Commission
     currently remains subject to the State Industrial Relations jurisdiction.

     Employee Development – Enabling our People to Achieve their Best

     We continue our investment in employee development programs that
     incorporate our Core Values, and support the Insurance Commission’s
     business outcomes.

     Our learning and development strategies equip our employees with the skills
     and leadership capabilities to perform their current role, and to develop their
     capabilities for future career advancement in a changing environment.

      Employee Perception Survey Results                2008                  2009
      Employees are satisfied with Learning and N/A                           72%
      Development practices
      Employees are satisfied with career progression   46%                   42%
      Employees satisfied with formal/informal feedback 36%                   41%


                                                                                     60
Key outcomes for the year included:

      x   Demonstrated commitment to developing our people, reflected in
          the average training investment per employee of $2,573.36, which
          exceeds the ‘all industry’ benchmark;

      x   Average training hours per employee was 21 hours in 2009;

      x   Continued financial support for employees electing to obtain
          academic and professional qualifications that are relevant to our
          business needs;

      x   Development towards an integrated capability            and   career
          framework for employees of our business divisions;

      x   Structured on-the-job training programs for Claims and Injury
          Service Trainees of our two insurance business divisions;

      x   Continuation of our accredited professional and technical programs
          for Claims and Injury Service Officers, including medical
          terminology and negotiation skills;

      x   92% of our RiskCover employees completed the Client Servicing
          Development program.

Recognition and Reward Program

Our Recognition and Reward Program is designed to recognise the significant
contribution of individual employees and teams who demonstrate our Core
Values in the achievement of our business objectives. The formal Employee
of the Month, Employee of the Year and Team of the Year Awards, are
supplemented by an informal reward system which promotes broader
recognition throughout the year.

The Insurance Commission also recognises the contribution of long-serving
employees. During the year, four employees, Sue McCarthy, Jeff Morris,
Steve Harper and Alan Keye celebrated 30 years of service and another two
employees, Kevin de Lang and Paul Till, celebrated 35 years of service with
the Insurance Commission. The Insurance Commission also recognised the
40 year service milestone of Don Williams in 2009.

Equal Employment Opportunity Outcomes

In accordance with the Equal Opportunity Act 1984, Section 146, our Equity
and Diversity Plan 2007–2009 continued with our key outcomes being to
enhance:

      x   Our employment practices and conditions;
      x   Our workforce profile, particularly Indigenous Australians and youth;
          and

                                                                             61
            x   Our workplace culture to encourage work–life balance: value
                diversity and to remain free of bullying and all forms of harassment.

      The Insurance Commission provides structured workplace learning
      placements for young people in association with various schools, and
      provides employment for youth through our traineeship program.
      Looking ahead to 2010, the Insurance Commission will continue to foster
      close partnerships with Indigenous organisations to provide structured
      workplace learning placements and traineeships for Indigenous youth.

4.4.4 Financial Administration

      A Financial Management Manual is maintained in accordance with Section 44
      of the Financial Management Act 2006. A Financial Delegations and
      Authorisations Manual, which records the Board’s delegation of powers,
      obligations and duties, is also maintained.

4.4.5 Independent Professional Advice

      The Insurance Commission of Western Australia Act 1986 empowers the
      Insurance Commission to engage, under contract, professional and technical
      services to enable it to carry out its functions. Under these powers, any
      requests made to the Board to seek independent professional advice would
      be a matter for them to consider at the time in light of the specific
      circumstances.

4.4.6 Internal Audit

      The Insurance Commission’s Internal Audit Service is undertaken by an
      external contractor. This provides the Board with an independent appraisal of
      the operation and effectiveness of systems and controls, and assists the
      Board in discharging its responsibilities under the Financial Management Act
      2006 and relevant Treasurer’s Instructions.

      The Audit assesses financial and administrative control systems and seeks to
      improve management of, and accountability for, the use of resources. It also
      aims to address, at a strategic level, key risk areas and corporate governance
      issues. The results of all audits are reported to the Audit and Accounts
      Committee and include opinions regarding the adequacy of financial;
      operational; administrative and systems controls.

      During 2009, the Audit and Accounts Committee considered various Internal
      Audit reports covering all areas of the Insurance Commission’s operations.




                                                                                   62
4.5   GOVERNANCE DISCLOSURES

4.5.1 Disclosure of Interest

      Schedule 1, Section 5 of the Insurance Commission of Western Australia Act
      1986, requires Commissioners to disclose any direct and indirect pecuniary
      interests in a matter being considered, or about to be considered, by the
      Board. All disclosures are required to be recorded in the Board meeting
      minutes.

      During 2009, there        were     no     disclosures   of   pecuniary   interest     by
      Commissioners.

      The Insurance Commission also has an established ‘Conflict of Interest’
      Policy for its employees and Commissioners for identifying, preventing, or
      resolving conflicts of interest. All employees and Commissioners have access
      to this Policy through the Insurance Commission’s Intranet website. In
      accordance with the Policy, employees and Commissioners must declare any
      personal activities or involvements which may present a conflict of interest
      relating to their duties within the Insurance Commission.

4.5.2 Shares Held by Senior Officers

      The Insurance Commission is not a private or publicly listed company with
      share capital and therefore does not issue shares.


4.6   OTHER LEGAL REQUIREMENTS

4.6.1 Advertising – Statement of Expenditure
      (Section 175ZE of the Electoral Act 1907)

      The Insurance Commission incurred the following expenditure in advertising,
      market research, polling, direct mail and media advertising:

       Expenditure with Advertising Agencies:                                         Nil

       Expenditure with Market Research Agencies:

       Quantum Management Indicators                                              $18,122
       Data-analysis Australia Pty Ltd                                            $67,822
       Uffindellwest                                                              $89,177

                                                                                 $175,121

       Expenditure with Polling Agencies:                                             Nil

       Expenditure with Direct Mail Agencies:

       Hermes Precisa Pty Ltd                                                      $4,704

                                                                                   $4,704


                                                                                            63
       Expenditure with Media Advertising Agencies:

       SEEK Ltd                                                                   $1,034
       Marketforce Ltd                                                            $8,975
       Adcorp Australia Ltd                                                     $116,993

                                                                                $127,002
       Total Expenditure                                                        $306,827

     All amounts include GST.

4.6.2 Disability Access and Inclusion Plan Outcomes

     In 2009, the Insurance Commission continued implementation of its 2007-
     2012 Disability Access and Inclusion Plan (DAIP), which was lodged with the
     Disability Services Commission on 9 June 2007. The DAIP Committee,
     comprised of members across various areas of the organisation, guided the
     achievement of activities, according to the priorities of the Insurance
     Commission’s DAIP Implementation Plan 2007-2008.

     Initiatives achieved by the Insurance Commission are outlined below against
     the Government’s six disability standards.

     Outcome 1: People with disabilities have the same opportunities as
     other people to access our services and events

             x   Regular meetings of the DAIP Committee to monitor the progress of
                 the DAIP and drive implementation;

             x   The principles of the DAIP are considered when formulating annual
                 budgets and business plans;

             x   Events are planned using the Accessible Events Checklist.

     Outcome 2: People with disabilities have the same opportunities as
     other people to access our buildings and other facilities

             x   Refurbishment of the ground floor concierge desk to accommodate
                 wheelchair access;

             x   Maintenance of three ACROD parking bays for Forrest Centre
                 visitors;

             x   Installation of sliding doors for the entrance to the 13th floor
                 reception area, and automatic doors to two of the claims area
                 floors; and

             x   Toilet facilities for people with disabilities available via the 13th floor
                 reception area.




                                                                                           64
     Outcome 3: People with disabilities receive information from us in a
     format that will enable them to access the information as readily as
     other people are able to access it

           x   Continued revision of the accessibility of the Insurance
               Commission’s website and internal Intranet to ensure use of plain
               English and compliance with World Wide Web Consortium (W3C)
               Standards.

     Outcome 4: People with disabilities receive the same level and quality of
     service from our employees as other people receive

           x   Induction materials have been revised to incorporate disability
               access and inclusion information.

     Outcome 5: People with disabilities have the same opportunities as
     other people to make complaints to us

           x   The Insurance Commission has a Complaints System and Policy
               which allows people to lodge a complaint with us via our website; or
               via telephone; email; letter; fax; or in person.

     Outcome 6: People with disabilities have the same opportunities as
     other people to participate in any public consultation we may carry out

           The Insurance Commission did not undertake any public consultation
           during the year. We remain committed to ensuring that people with
           disabilities have the same opportunities as other people to participate
           in any public consultation that we may undertake in the future.

4.6.3 Compliance with Public Sector Standards and Ethical Codes
      (Public Sector Management Act 1994, Section 31 (1))

     Public Sector Standards: No breach claims were lodged.
     WA Code of Ethics: No breach claims were lodged.

     In relation to Public Sector Standards in Human Resource Management, the
     Insurance Commission took the following actions to monitor and ensure
     compliance:

           x   Policies, guidelines and procedures are in place to ensure
               compliance including internal reviews.

           x   Internal Audit program includes an independent assessment
               against the Standards.

           x   Information about the Standards is easily accessible on the Intranet.




                                                                                  65
     In relation to WA Public Sector Code of Ethics and the Insurance
     Commission’s Code of Conduct, the Insurance Commission took the following
     actions to monitor and ensure compliance:

            x   The WA Public Sector Code of Ethics is easily accessible to all
                employees on the Intranet and covered during the induction of new
                employees.

            x   Our Code of Conduct is integrated into our induction and
                employment practices and remains easily accessible on our
                Intranet.

            x   The Insurance Commission has management and operational
                procedures to ensure Conflicts of Interest are identified and
                managed in a transparent and accountable manner.

            x   47% of employees responded to our 2009 Employee Perception
                Survey which included questions on ethical behaviour and our Core
                Values.

4.6.4 Recordkeeping Plans

     In accordance with the State Records Act 2000, Section 61 and State
     Records Commission Standard 2, Principle 6, the following progress was
     made with regard to the Insurance Commission’s Recordkeeping Plan.

     Recordkeeping Systems Review

     The Insurance Commission’s Recordkeeping Plan was approved by the State
     Records Commission in October 2004. A Recordkeeping Systems Review will
     be conducted in the second half of the 2009 calendar year.

     Implementation of Recordkeeping Plan

     The major project roll out of a File Management software system for paper
     based records was completed successfully in June 2009, and encompassed
     all corporate records held within the Insurance Commission. The roll out
     focused on the implementation of a Language Control Tool Kit, the “File Plan”.
     This was constructed by first mapping the processes within the Insurance
     Commission, and then building titling methods based on these maps. As a
     result, records are given a meaningful title, rather than a traditional sequential
     number.

     The Insurance Commission’s recordkeeping policy is based on decentralised
     storage for its records, i.e. all document creators are responsible for the
     creation and maintenance of their own records. As such, it was an important
     part of implementation that appropriate training was delivered to relevant staff.




                                                                                     66
      Recordkeeping Training Program

      In 2009, Recordkeeping Awareness Training was delivered on-line for
      permanent staff and via information sheets for casual and temporary staff. A
      total of 24 new permanent staff successfully completed the on-line course.
      Additional corporate Recordkeeping Training was embedded within the
      implementation phase of the Insurance Commission File Plan and TRIM
      software throughout the organisation. The implementation phase concluded in
      June 2009 with approximately 52 staff participating in and receiving
      Recordkeeping Training as part of the implementation.

      As part of claims management training sessions for 41 new claims staff,
      Recordkeeping Training was also embedded into the sessions.

      The Insurance Commission’s Induction Program addresses employee and
      contractor roles and responsibilities in regard to their compliance to the
      Insurance Commission’s Recordkeeping Plan. The Induction Program
      includes Recordkeeping Awareness and Recordkeeping Training specifically
      tailored to the role of the new staff member within the Insurance Commission.

      Effectiveness of Recordkeeping Implementation and Training

      Evaluation of the implementation of the Insurance Commission’s File Plan
      indicated that Recordkeeping Training was effective.

      The Evaluation measured, amongst other things:

             x   The degree to which the File Plan reflected the activities of the
                 Insurance Commission;
             x   The confidence of staff in identifying the appropriate File (Record)
                 for adding new documents; and
             x   The extent to which the training contributed to participants’
                 understanding of records management.


4.7   GOVERNMENT POLICY REQUIREMENTS

4.7.1 Corruption Prevention

      The Insurance Commission has a Fraud and Corruption Control Policy and a
      Corporate Fraud and Corruption Control Plan which clearly communicate our
      commitment to addressing the risk of corruption and misconduct, with a strong
      emphasis on prevention.

      The Plan and Policy are published on our Intranet website so that they can be
      accessed by all employees and the Board of Commissioners. The Insurance
      Commission specifically addresses the risk of corruption within its holistic risk
      management process which is incorporated as a key component of the
      Insurance Commission’s annual strategic planning and budgeting process.



                                                                                     67
4.7.2 Occupational Safety and Health (OSH)

     The Insurance Commission’s Occupational Safety and Health (OSH) goal is to
     ensure a safe and healthy work environment for all employees, contractors and
     visitors. Our commitment to this goal is reflected by no Lost Time Injuries
     during the year.

                         For the second consecutive year, the Insurance
                         Commission was a finalist for the ‘Best Public Sector
                         Leadership for Injury Prevention and Management’
                         category of the Work Safety Awards WA 2008.

                         This Award recognises Government organisations that
                         demonstrate commitment to continuous improvement in
          2008           OSH and injury management performance through the
        Finahst
                         application of leadership and best practice in the
                         workplace.

     The Insurance Commission’s last formal external audit was undertaken in July
     2008 against the WorkSafe Plan. The Report concluded that the Insurance
     Commission’s OSH performance had improved since 2004 and satisfied the
     criteria for a Gold Certificate of Achievement under the WorkSafe Plan
     assessment process.

     The WorkSafe Plan – Gold Certificate of Achievement is in recognition of
     excellence in the management of safety and health in the workplace and
     contribution to reduction of work-related injury and disease in Western
     Australia.




                         L-R: Vic Evans, Nina Lyhne and Grant Edmunds.

     Ms Nina Lyhne, WorkSafe Commissioner, presented the WorkSafe Plan –
     Gold Certificate of Achievement to the Managing Director, Vic Evans, and the
     Acting Manager Human Resources Division, Grant Edmunds, at a ceremony
     held in May 2009, attended by members of the Executive and the OSH
     Committees.




                                                                                68
Our Annual OSH Business Plan, reviewed by the OSH Committee and
approved by the Executive Committee, further supports the continuous
improvement and awareness of safety and health in the workplace, and
focuses on five key areas:

       x   Planning and Policy;
       x   Consultation;
       x   Hazard Management;
       x   Training and Education; and
       x   Management Commitment.

During the year, we continued to focus resources in the areas of
incident/hazard identification; elimination or control of hazards; development of
safe and healthy work practices; provision of training in safe work practices;
compliance with OSH legislation and rehabilitation of any injured employees.

The OSH Committee is comprised of management and employee
representatives, and forms the key to occupational safety and health
consultation with the Insurance Commission. The Committee members’
appointment, location and details are communicated to all employees and
information is located on our Intranet. All OSH Representatives are fully
trained and feedback is obtained on safety and health in the workplace through
our Employee Perception Surveys each year. The results for 2008 and 2009
are:

Employee Perception Survey Results                          2008       2009
Employees are satisfied with Health and Safety              89%        88%
Conditions
Employees who consider safety is integrated into            79%        85%
Divisional practices
Employees satisfied with the Wellness Program               75%        84%

Our commitment to increased awareness of OSH issues is reflected in the
following:

       x   New employees to the Insurance Commission participate in an
           interactive OSH induction and ergonomic workstation assessment;

       x   Promotion of OSH Awareness Days;

       x   Ongoing ergonomic assessments for existing employees;

       x   OSH Committee meeting minutes and our OSH Business Plan and
           policies are published on our Intranet;

       x   Safe Driving training for employees younger than 25 years of age;



                                                                               69
       x   For the 29 incidents/hazards identified by employees for 2009
           financial year, all reported hazards have been investigated and
           controls have been implemented or the hazard eliminated;

       x   Early response to Influenza A (H1N1 - Swine Flu). As part of our
           risk management approach, the Insurance Commission’s ‘Infectious
           Disease Policy’ was reviewed in May 2009 and information was
           included on Swine Influenza in addition to information on Severe
           Acute Respiratory Syndrome (SARS) and Avian Bird Flu.          A
           Human Swine Influenza – Frequently Asked Questions was issued
           in June 2009 to provide further information to employees and a
           range of practical measures were promptly implemented with no
           reported cases;

       x   All managers/supervisors received further training in their
           obligations under the OSH legislation, regulations and codes of
           practice current in WA, and application of the specific policies and
           procedures. The training also examined the interaction of the EEO
           and OSH legislation, including the prevention of bullying in the
           workplace, and requirements of the identification and management
           of risk and behaviours in the workplace. All employees received a
           modified version of the training;

       x   A pilot Injury Management program has been developed for
           managers/supervisors to raise awareness and understanding in
           managing an employee who sustains a work-related injury or
           illness.

Our Wellness Program promotes health awareness and includes; healthy heart
checks; skin cancer screening; first aid training and physical exercise. The
Employee Assistance Program offers employees and their families free
confidential counselling assistance on work or family issues.




                                                                             70
     The Insurance Commission has achieved further improvement in the Lost Time
     Incidence rate and Lost Time Frequency rate. The results are outlined in the
     table below:

    OSH Performance Targets                                              2007         2008        2009
    Lost time incidence rate                                              0.67         0.32         0
    (State target is 0 or 10% reduction on last year)
    Lost time severity rate                                                 50             0        0
    (State target is 0 or 10% reduction on last year)
    Lost time frequency rate                                              3.75         1.57         0
    (State target is 0 or 10% reduction on last year)
    Number of Fatalities                                                      0            0        0
    (Target is zero )
    Percentage of injured workers returned to work                         n/a           n/a      100*
    within 28 weeks
    (Actual percentage result to be reported)
    Percentage of managers trained in occupational                         n/a           n/a       90
    safety,    health     and    injury   management
    responsibilities.
    (Greater than or equal to 50%)
      * Occurrence in 2008 and reported in accordance with Public Sector Reporting requirements

4.7.3 Substantive Equality

      In accordance with the Public Sector Commissioner’s Circular 2009/23:
      Implementation of the Policy Framework for Substantive Equality, all
      departments represented on the Strategic Management Council are required
      to report on their commitment to implement the Policy Framework for
      Substantive Equality. The Insurance Commission is not represented on the
      Strategic Management Council, and therefore is not required to report on its
      commitment to implement the Policy Framework for Substantive Equality.

      The Insurance Commission, however, is committed to substantive equality, in
      particular the objectives of the Policy Framework, which are to achieve
      sustainable equality by eliminating systemic racial discrimination in the
      provision of the public sector services; and promoting sensitivity to the
      different needs of client groups.

4.7.4 Sustainability

      The Insurance Commission has an ongoing commitment to sustainability. In
      the spirit of continuous improvement, we endeavour to achieve these activities
      and seek methods of enhancement as we believe that the benefits of a
      proactive sustainability program are clear.




                                                                                                     71
The Sustainability Statement and Action Plan provides a statement of current
aims, actions and plans in relation to specific activities relating to sustainability
in the following areas:

       x   Energy Use (electricity and water);
       x   Vehicle Fuel;
       x   Recycling;
       x   Imaging; and
       x   Purchasing.

Sustainable environmental and business management activities undertaken
by the Insurance Commission in 2009 included:

       x   Upgrade of chillers and cooling towers serving The Forrest Centre,
           which will deliver a forecast 14% saving in annual energy use;

       x   Engaging the services of Consulting Engineers to provide guidance
           in the improvement of energy efficiency of The Forrest Centre;

       x   The Forrest Centre has committed to the Water Corporation’s
           Water Efficiency Management Plan with an aim to reduce overall
           consumption by 2% per annum;

       x   Lighting upgrades within The Forrest Centre have been carried out
           to include the use of energy-efficient globes;

       x   New electrical meters have been installed to all tenancies in The
           Forrest Centre to enable better monitoring of tenants’ power use;

       x   Within the Insurance Commission’s investment properties,
           Westralia Square installed a new Building Management Controls
           System and an Environmentally Sustainable Design Consultant was
           appointed for The Shops at Ellenbrook Stage 2 Development.

       x   Westralia Plaza is being built to a 4 Star Greenstar design, and the
           Insurance Commission will be targeting a 4.5 to 5 Star NABERS
           Energy Rating.




                                                                                   72
APPENDIX

    In addition to the legislation outlined in 1.2.5 Administering Legislation, the Insurance
    Commission is also administered in accordance with the sections noted of the
    following Acts:

           x   Workers’ Compensation and injury Management Act 1981
               (Section 163 – sole insurer against certain industrial diseases)

           x   Employers’ Indemnity Supplementation Fund Act 1980
               (Claims management)

           x   Mine Workers’ Relief Act 1932
               (Part II – vesting of assets and liabilities of the Mine Relief Workers’ Board
               in SGIO)

           x   Police Assistance Compensation Act 1964
               (Section 8 – extension of General Liability cover)

           x   Police (Former Officers’ Medical and Other Expenses) Act 2008

           x   Waterfront Workers (Compensation for Asbestos-Related Diseases) Act
               1986
               (Claims management)

           x   Workers’ Compensation and Injury Management (Acts of Terrorism) Act
               2001
               (Section 9 – indemnity for liability attributable to terrorism)

    Other written laws which may impact on the Insurance Commission in the
    performance of its functions include:

           x   A New Tax System (Goods and Services Tax) Act 1999
           x   Auditor General Act 2006
           x   Civil Liability Act 2002
           x   Commercial Tenancy (Retail Shops) Agreements Act 1985
           x   Competition Policy Reform (Western Australia) Act 1996
           x   Corporations Act 2001
           x   Corruption and Crime Commission Act 2003
           x   Criminal Code Act Compilation Act 1913
           x   Crown Suits Act 1947
           x   District Court of Western Australia Act 1969
           x   Electronic Transactions Act 2003
           x   Equal Opportunity Act 1984
           x   Evidence Act 1906
           x   Fatal Accidents Act 1959


                                                                                           73
x   Fair Trading Act 1987
x   Financial Management Act 2006
x   Freedom of Information Act 1992
x   Fringe Benefits Tax Assessment Act 1986
x   Health and Other Services (Compensation) Act 1995
x   Income Tax Act 1986
x   Income Tax Assessment Act 1997
x   Industrial Relations Act 1979
x   Labour Relations Reform Act 2002
x   Law Reform (Contributory Negligence and Tortfeasors’ Contribution) Act
    1947
x   Legal Practice Act 2003
x   Limitation Act 1935
x   Limitation Act 2005
x   Local Courts Act 1904
x   Long Service Leave Act 1958
x   Minimum Conditions of Employment Act 1993
x   New Business Tax System (Alienation of Personal Services Income) Act
    2000
x   Occupation Safety and Health Act 1984
x   Privacy Act 1988
x   Public Interest Disclosure Act 2003
x   Public Sector Management Act 1994
x   Road Traffic Act 1974
x   Stamp Act 1921
x   Statutory Corporations (Liability of Directors) Act 1996
x   State Enterprises (Commonwealth Tax Equivalents) Act 1996
x   State Records Act 2000
x   State Superannuation Act 2000
x   State Superannuation (Transitional and Consequential Provisions) Act
    2000
x   State Supply Commission Act 1991
x   Supreme Court Act 1935
x   Trade Practices Act 1974
x   Workers’ Compensation and Injury Management Act 1981
x   Workplace Relations Act 1996

                                                                        74
                                                    86
                            Austrlla Western of
                                                   AUDITE
                           Comniission Insurance    OAG
,VesternAustraUa of Commission Insurance
2009
              FINANCIAL
     O9   REPORT ANNUAL                                          AUSTRAL[A WESTERN OF COMMISSION INSURANCE
179                                           Statements Financial Fund Insurance Community            41 Note
171                                                        Statements Financial Fund RiskCover         40 Note
170                                                                      Disclosures Party Related     39 Note
170                                                                      Auditor of Remuneration       38 Note
168        Personnel Management Key other and Commissioners of Board the of Remuneration               37 Note
167                                           Causes Other and Default Theft, Through Losses           36 Note
166                                                  Date Sheet Balance after Occurring Events         35 Note
66 i                                                                   Commitments Expenditure         34 Note
165                                                             Liabilities and Assets Contingent      33 Note
165                                                                        Dependency Economic         32 Note
164                                                                                 Entities Group     1 3 Note
162                                                                      -
                                               Commission Insurance Statement Explanatory              30 Note
161                                                                     Earnings Retained Funds'       29 Note
159                                                                          Sheet Balance Funds'      28 Note
157                                                                      Statement Income Funds'       27 Note
156                                                                            Reporting Segment      26 Note
152                                                                          Instruments Financial     25 Note
51 1                                                           Statement Flow Cash the to Notes       24 Note
150                       Currencies Foreign in Denominated Payable and Receivable Amounts             23 Note
150                                                                        Income Lease Property      22 Note
147                                                                 Liabilities Benefit Employee       21 Note
147                                                                                      Provisions   20 Note
146                                                                      Liability Risk Unexpired     19 Note
145                                                                 Liability Premium Unearned        18 Note
133                                                                 Liability Claims Outstanding      17 Note
132                                                                                        Payables   16 Note
132                                                                                   Assets Other    15 Note
132                                                                   Costs Acquisition   Deferred    14 Note
131                                                                               Assets Intangible   13 Note
31 1                                                                         Properties Investment    12 Note
129                                                               Equipment and Plant Property,        11 Note
127                                        Loss or Profit through Value Fair at Assets Financial      0 1 Note
126                                                                                    Receivables      9 Note
124                                                                        Equivalent Tax Income        8 Note
123                                                                           Incurred Claims Net       7 Note
122                                                                                       Expenses      6 Note
121                                                                          Income and Revenue         5 Note
108                                                  Procedures and Policies Management Risk            4 Note
98                                                          Methods and Assumptions Actuarial           3 Note
97                                               Estimates and Judgements Accounting Critical           2 Note
84                                                 Policies Accounting Significant of Statement         1 Note
83                                                    2009 June 30 ended year the for Statement Flow Cash
82                                         2009 June 30 ended year the for Equity in Changes of Statement
81                                                                              2009 June 30 at Sheet Balance
80                                                        2009 June 30 ended year the for Statement Income
78                                                                             General Auditor the of Opinion
77            Officer Finance Chief and Board the of Members the by Statements Financial of Certification
Page
                                                          INDEX 2009 STATEMENTS FINANCIAL
                                                                                                          86
        REPORT ANNUAL                                       AUSTL WESTERN     OF COMMISSION SURANCE   AUDITEd
                                                                                                          OAG
                                                                     1
                                                   2009. September       on passed Australia Western
                                                                        a
 of Commission Insurance the of Commissioners of Board the of resolution with accordance In
                                                                             September2009            1
                                                                    OFFICER FINANCE CHIEF
                                                                            WELL CO ERNIE
               2009 September    1




                                                                             41    2009 September     1
     DIRECTOR MANAGING                                                            CHAIRMAN
              EVANS VIC                                                    WRIGHT E MICHAEL
                                      inaccurate. or misleading statements financial the in included
                                                                        are we signing of date the At
     particulars the render would which circumstances, any of aware not
                                                                          2009. June 30 at position
     financial the and 2009 June 30 ended year financial the for transactions financial the fairly
     present to records and accounts proper from 2006 Act Management Financial the of provisions
     the with compliance in prepared been have statements financial consolidated accompanying the
     and Australia Western of Commission Insurance the of statements financial accompanying The
                                                    Australia Western of Commission insurance
                                 OFFICER FINANCE CHIEF AN1) fiGARO
     THE OF MEMBERS THE BY STATEMENTS FJINANCIAL OF CERTiFiCATION
7J
  5664 9322 08 Fax: 7500 9222   OR   Tel:   Australia Western   6005 Perth West   Street Havelock   2   House Dumas Floor 4th
                                                                  1
                                                            of2 Page
                                      indicators. performance key and statements financial the of
users of decisions the affect adversely to enough significant omissions or errors identify
                                                                                           should
procedures audit my However, transaction. every and evidence all examine not does audit
an that recognises assurance" "reasonable term The free. error is indicators performance key
and statements financial the in disclosure and amount every that guarantee not does audit An
                                    audit.wa.gov.au/pubs/AuditPracStaternentFeb09.pdf. www.
Refer statement. practice audit my in provided is approach audit my on information
Further opinion. audit my for basis a provide to appropriate and sufficient is obtained
have I evidence audit the that believe I evidence. audit the of samples selected testing by
done was This audit. my on based indicators performance key and controls statements, financial
the on opinion an express to is responsibility my 2006, Act General Auditor the by required As
                                                                       Role my of Summary
                                                                      law. written relevant other
and 2006 Act Management Financial the with complying and circumstances; the in reasonable
are that estimates accounting making policies; accounting appropriate
                                                                         applying and selecting
error; or fraud to due whether misstatement, material from free are that indicators performance
key and statements financial the of presentation fair and preparation the to relevant controls
internal maintaining and establishing includes responsibility This indicators. performance key
the and Instructions, Treasurer's the and Interpretations) Accounting Australian the (including
Standards Accounting Australian with accordance in statements financial the of presentation
fair and preparation the and accounts, proper keeping for responsible is Commission The
 Indicators Performance Key and Statements Finarieial the for Responsibility Commission's
       efficiency. and effectiveness of indicators key of consist indicators performance key The
                                                                Notes. explanatory other and
policies accounting significant of summary a ended, then year the for entity consolidated the
and Commission the of Statement Flow Cash and Equity in Changes of Statement Statement,
Income the and 2009, June 30 at as Sheet Balance the comprise statements financial The
                         entity. consolidated the and Australia Western of Commission Insurance
the of indicators performance key and controls statements, financial accounts, the audited have I
                                       2009 JUNE 30 ENDED YEAR TILE FOR
                INDICATORS PERFORMANCE KEY AND STATEMENTS FINANCIAL
                          AUSTRALIA WESTERN OF COMMISSION INSURANCE
                                                                      Australia Western of Parliament the To
                                                                         OPINION AUD][T INDEPENDENT
                                                Genera Audtor
                                               2 of 2   Page
                                                                            2009 September 10
                                                                         GENERAL AUDITOR
                                                                              URPFØ{  COLIN
                                        2009. June 30 ended year the for performance
indicated the represent fairly and performance Commission's the assess users help
to appropriate and relevant are Commission the of indicators performance key the
                                                                       and provisions;
legislative with accordance in been have liabilities of incurring the and property,
of disposal and acquisition the money, of investment and expenditure receipt,
the that assurance reasonable provide Commission the by exercised controls the
Instructions; Treasurer's the and Interpretations) Accounting Australian the (including
Standards Accounting Australian with accordance in are They date. that on ended
year the for flows cash and performance financial their and 2009 June 30 at entity
consolidated the and Australia Western of Commission Insurance the of position
financial the fairly present and accounts proper on based are statements financial the
                                                                                   opinion, my in
                                                                                 Opinion Audit
      2009 June 30 ended year the for Indicators Performance Key and Statements Financial
                                              Australia Western of Commission Insurance
      09             ANNUAL                                                                   AUSTRALIA wEsTaRN OF COIMI5SJON ANCO        NS
           REPORT\
           (                                                                                                                             AUDITED
                                                                                                                                           OAG
       Statement. Income this from excluded are funds These respectively. 41 and 40 Notes Refer Australia. Western of Government
      State the of behalf on Commission Insurance the by managed are Fund Insurance Community and Fund RiskCover The
                                                                             27. Note Refer eliminations. inter-fund account into
      taking Funds, Commissions Insurance the of aggregation an represents Commission Insurance the for Statement Income The
                     Statements. Financial the of part forming and to Notes the with conjunction in read be should Statement Income The
                                                                                                        AUSTRALIA WESTERN
      (34,110)         (160,837)      (34,110)       (160,837)                   OF GOVERNMENT STATE THE TO ATTRIBUTABLE
                                                                                 BENEFIT EQUIVALENT TAX INCOME AFTER LOSS
       33958            79,335         33,432         78,697             8                        Benefit Equivalent Tax Income
      (68,068)         (240,172)      (67542)                                                                       BENEFIT
                                                     (239,534)
                                                                                          EQUIVALENT TAX INCOME BEFORE LOSS
      (11,705)         (14,678)       (12,932)       (16,166)            6                                             OtherExpenses
       35,016           56,706         34,823         56,523             5                                              Income Other
       14423            41,242         15,863         42,244             6                                            Recoup Finance
      (19918)          (21,540)       (19,918)       (21,540)            6                                       Expenses Investment
      (75333)          (202,828)      (75,333)       (202,828)           5          Value Fair in Movements including Loss Investment
      (10,551)         (99,074)       (10,045)       (97,767)                                               LOSS UNDERWRITING
      (45,814)         (62,122)       (45812)        (62,127)           6                    Expenses Administration and Underwriting
      (10,109)         (11,007)       (10,109)       (11,007)           6                                            Costs Acquisition
       1,188                           1,188                            6,19                          Risk Unexpired in Movement Net
       700             (10,700)        700           (10,700)           19                                                   Liability
                                                                                 Risk Unexpired on Recoveries Other and Reinsurance
       488              10,700         488           10,700             19                Liability Risk Unexpired in Movement Gross
      (312,597)        (406,463)      (312,177)      (405,151)          7                                       Incurred Claims Net
       2,032            3,311          1,887          3,286              5                Revenue Recoveries Other and Reinsurance
      (314,629)        (409,774)      (314,064)      (408,437)           6                                          Expense Claims
       356.781          380,518        356,865       380,518                                                Revenue Premium Net
       413              416            413            416                5               Revenue Commission Reinsurance Outwards
      (3,855)          (4,123)        (3776)         (4,123)             6                  Expense Premium Reinsurance Outwards
       360223           384,225        360228         384,226            5                                      Revenue Premium
      $'OOO            $000           $000      $000                   Notes
      2008             2009           2008      2009
       COMMISSION INSURANCE                CONSOLIDATED
                                                                                         2009 June 30 ended year the for
                                                                                                STATEMENT INCOME
P1)
          2   REPORT ANNUAL                                                                      AUSTRALIA WESTERN OF COMMISSION INsuFANcE
                                                                                                                                               86
                                                                                                                                             AUDITED
                                                                                                                                              7OAG
          Sheet. Balance this from excluded are funds These respectively. 41 and 40 Notes Refer Australia. Western of Government
     State the of behalf on Commission Insurance the by managed are Fund Insurance Community and Fund RiskCover The
                                                                                   28. Note Refer eliminations. inter-fund account
     into taking Funds, Commission's Insurance the of aggregation an represents Commission Insurance the for Sheet Balance The
                           Statements. Financial the of part forming and to Notes the with conjunction in read be should Sheet Balance The
      880,747          704,337           880,747        704,337                                                           EQUITY TOTAL
      743,044          583,795           743,044        563,795            29                                       Earnings Retained
      18,093           16,505            18,093         16,505                        Reserve Fund Diseases) (Industrial Compensation
      119,610          104,037           119,610        104,037                                            Reserve Revaluation Asset
                                                                                                                               EQUITY
      880,747          704,337           880,747        704,337                                                              ASSETS NET
      1,879,751        1,827,952         1,864,083      1,811,171                                                    LIABILITIES TOTAL
      1,308,315        1245,036          1,292,133      1,227,725                                         Liabilities Non-Current Total
      138,887          50,445            138,378        50,253             8                                      Liabilities Tax Deferred
      10,071           11,358            10,071         11,358             20                                                   Provisions
      1,140,893        1,164,769         1,143,671      1,166,101          17                               Liability Claims Outstanding
      18,464           18,464            13             13                 16                                                    Payables
                                                                                                                Liabilities Non-Current
      571,436          582,916           571,950        583,446                                                Liabilities Current Total
      3,947             5,771            3,947          5,771              20                                                   Provisions
      10700            -                 10,700         -                  19                                    Liability Risk Unexpired
      150,231          162,085           150,231        162,065            18                               Liability Premium Unearned
      315,740          378,623           316,249        379,146            17                               Liability Claims Outstanding
                       -                                -
      53,014                             53,014                                                                      Payable Tax Current
      34,075           32,595            34,080         32,600             16                                                    Payables
      3,729            3,842             3,729          3,842             24                                               Overdraft Bank
                                                                                                                     Liabilities Current
                                                                                                                              LIAlLlTlES
      2,760,498        2,532,289         2,744,830      2,515,508                                                        ASSETS TOTAL
      1,285,363        1,192,774         1,267,360      1,173,243                                            Assets Non-Current Total
      1,118            886               1,118          886               15                                               OtherAssets
      7,151            8,860             7,151          8,860             13                                           IntangibleAssets
      388,276          359,051           388,276        359,051           12                                     Properties Investment
      304,650          291,271           304,650        291,271            11                            Equipment and Plant Property,
      336,419          325,315           318,370        305,778           10       Loss or Profit Through Value Fair at Assets Financial
      247,749           207,391          247.795        207,397           9                                                Receivables
                                                                                                                  Assets Non-Current
      1,475,135        1,339,515         1,477,470      1,342,265                                                 Assets Current Total
      850              1,721             850            1,721             15                                               OtherAssets
      1,871            3,930             1,871          3,930             14                                 Costs Acquisition Deferred
      1430,986         1,282,789         1430,986       1,282,789         10       Loss or Profit Through Value Fair at Assets Financial
      -                                  -
                       8,064                            8,064                                                   Receivable Tax Current
      41,428           43,011            40,927         42,709            9                                                 Receivables
      -                -
                                         2,836          3,052             24                               Equivalents Cash and Cash
                                                                                                                        Assets Current
                                                                                                                                 ASSETS
     $,000             $'ooO            $'000          $,000              Notes
     2008              2009             2008           2009
      COMMISSION INSURANCE                       CONSOLIDATED
                                                                                                                   2009 June 30 at
                                                                                                            SHEET BALANCE
81
         REPORT   AUAL                                                                         AUSTRALIA WESTERN OF COMMISSION ANCE           INS
                                                                                                                                                    86
?OL                                                                                                                                           AUDITED
 (((i                                                                                                                                           OAG
                                                                            mesothelioma. for cure a find to research medical
   on expended be future the in will and been has reserve the of Part diseases. industrial of treatment and prevention the into
   research and 17) Note (Refer 1932 Act Fund Relief Workers' Mine the to pursuant Commission Insurance the by expended
   be to required amounts any meeting, in assist or meet, to Reserve this in monies the transfer only may Commission
   Insurance the 1986, Act Australia Western of Commission Insurance the with accordance In liabilities. claims outstanding
  its for estimate actuarial the to surplus funds from results Reserve Fund Diseases) (Industrial Compensation The                      (I)
                                                                                                      Equity. in Changes
  of Statement this from excluded are funds These respectively. 41 and 40 Notes Refer Australia. Western of Government
  State the of behalf on Commission Insurance the by managed are Fund Insurance Community and Fund RiskCover The
                                            Fund. General Commission Insurance the within held is Reserve Revaluation Asset The
                                     29. Note Refer eliminations. inter-fund account into taking Funds, Commission's Insurance the
   of aggregation an represents Earnings Retained to relation in Commission Insurance the for Equity in Changes of Statement The
                                                                                                                      Statements.
   Financial the of part forming and to Notes the with conjunction        in   read be should Equity in Changes of Statement The
   880,747         704,337        880,747         704,337                              YEAR THE OF END AT EQUITY OF BALANCE
   4,844           (176,410)      4,844          (176,410)                                                     Year the for Equity or
                                                                                  Statement Income via Movement Recognised Total
   (34,110)        (160,837)     (34,110)        (160,837)                       Benefitl(Expense) Equivalent Tax Income After Loss
   38,954          (15,573)       38,954         (15,573)                        Equity in Directly Recognised (Expense)/lncome Net
                   6,674                                                                                    Equity to Directly Taken
   (16,694)                      (16,694)        6,674
                                                                                  Items on Benefitl(Expense) Equivalent Tax Income
                                                                                        Equipment and Property Plant, as presented
    55,648         (22,247)       55,648         (22,247)            11
                                                                                       Buildings and Land of Revaluation Value Fair
    875,903         880,747       875,903         880,747                           YEAR THE OF START AT EQUITY OF BALANCE
                                                                                                 EQUITY IN CI-IANJGES OF SUMMARY
    743,044         583,795       743,044         593,795            29                                   Year the of End at Balance
                          1
                                                                                                                        Reserve Fund
    40              588           40              1,688
                                                                                   Diseases) (Industrial Compensation from Transfer
   (34,110)        (160,837)     (34,110)        (160,837)                                 Benefit Equivalent Tax Income After Loss
    777,114         743,044       777,114         743,044                                                 Year the of Start at Balance
                                                                                                               EARNINGS RETAINED
   18,093          16,505         18,093          16,505                                                   Year the of End at Balance
   (40)            (1,588)       (40)            (1,588)            (I)                            Earnings Retained to Transfer
    18,133          18,093        18,133          18,093                                             Year the of Start at Balance
                                                                               Reserve Fund Diseases) (Industrial Compensation
    119,610         104,037       119,610         104,037                                                  Year the of End at Balance
                                                                                          -
    38,954         (15,573)       38954          (15,573)             Effect Tax of Net       Revaluation Asset from (Reduction)/Gain
    80,656          119,610       80656           119,610                                                  Year the of Start at Balance
                                                                                                          Reserve Revaluation Asset
                                                                                                                             RESERVES
   $'OOo      $,000              $'Ooo           $,000             Notes
   2008       2009               2008         2009
    COMMISSION INSURANCE                 CONSOLIDATED
                                                                               2009 June 30 ended year the for
                                                                      EQUITY IN CHANGES OF STATEMENT
    ,OO9   RLEPOR   ANNUAL                                                                      AUSTRALIA WESTERN OF COMMISSION SANDS       SI IN
                                                                                                                                                    86
&                                                                                                                                            (AUDITED
                                                                                                            Statement.
    Flow Cash this from excluded are funds These respectively. 41 and 40 Notes Refer Australia. Western of Government
    State the of behalf on Commission Insurance the by managed are Fund Insurance Community and Fund RiskCover The
                Statements. Financial the of part forming and to Notes the with conjunction   in read be   should Statement Flow Cash The
                      74,933                                             24                                           YEAR
     102,095                          104,931        77,985
                                                                                   THE OF END AT EQUIVALENTS CASH AND CASH
                                                                                                                  YEAR THE
     56,671            102,095        59,014         104,931
                                                                                     OF START AT EQUIVALENTS CASH AND CASH
     45,424           (27,162)        45,917        (26,946)                                                              EQUIVALENTS
                                                                                   CASH AND CASH IN (DECREASE)/INCREASE NET
    (158623)          (190,227)      (158,623)      (190,227)                             Activities Investing In Used Flow Cash Net
     369               322           369             322                          Equipment and Plant Property, of Sale from Proceeds
    (13,820)          (25,954)       (13,820)       (25,954)                   Equipment and Plant Property, of Purchase for Payments
     848,045           1,337,929      848,045        1,337,929                                      Investments of Sale from Proceeds
    (953,093)         (1,412,940)    (953,093)      (1,412,940)                                 Investments of PLirchase for Payments
    (40,124)          (89,584)       (40,124)       (89,584)                              RiskCover from Received Funds Investment
                                                                                       ACTIVITIES INVESTING IN USED FLOW CASH
     204047            163,065        204,540        163,281             24                 Activities Operating From Flow Cash Net
    (10,241)          (8,888)        (10,241)       (8,888)                                                             Payments Other
    (40,719)          (42,115)       (40,719)       (42,115)                                                           Paid Duty Stamp
    (14,385)          (13,169)       (14,385)       (13,169)                                              Paid Tax Services and Goods
    (17,679)          (63,305)       (18,166)       (63,832)                                               Paid Equivalent Tax Income
    (16,467)          (15,777)       (16,467)       (15,777)                                                    Paid Expenses Property
    (3,244)           (11,677)       (3,244)        (11,677)                                                 Paid Costs Recovery Debt
    (38,195)          (47,971)       (38,386)       (48,154)                            Paid Expenses Administration and Underwriting
    (645)             (59)           (645)          (59)                                                              Paid Costs Set-up
    (12,991)          (14,167)       (12,991)       (14,167)                                                     Paid Costs Acquisition
    (4,512)           (4,574)        (4.433)        (4,574)                                                Paid Reinsurance Outwards
    (133)             (96)           (133)          (96)                 41                 Fund Insurance Community to Paid Interest
     16,325            36,474         16,325         36,474              40                         Fund RiskCover to Charged Interest
    (327,044)         (358,974)      (327,262)      (359,067)                                                               Paid Claims
                                     -               -
    (1,440)           (1,002)                                                                               Corporation to Paid Interest
     416               589            416            589                                                                   OtherReceipts
     454               458            454            458                                 Received Commission Reinsurance Outwards
                       -                             -
     14,469                          14,469                              10             Off Written Previously Investments of Recovery
     20,421            23,812        20,421          23,812                                                Received Fees Management
     2,141             8,432         2,006           8,449                                Received Recoveries Other and Reinsurance
     96,037            49,146        96,037          49,146                                                        Received Dividends
     -                 44,648        -               44,648              9                                   Received Costs of Security
     50,925            62,040        50,925          62,040                                                  Received Income Property
     35,150            39,822        35,150          39,822                                                         Received Interest
     2,705             715           2,705           715                                  WA WorkCover - Receipts Indemnity of Right
     4,547             5,330         4,547           5,330                    Fund Insurance Government - Receipts Indemnity of Right
     448,152           473,373       448,157         473,373                                                     Received Premiums
                                                                                        ACTIVITIES OPERATING FROM FLOW CASH
    $'000             $'000          $'000          $,000              Notes
    2008              2009           2008           2009
     COMMISSION INSURANCE                    CONSOLIDATED
                                                                                         2009 June 30 ended year the for
                                                                                               STATEMENT FLOW CASH
y
     2009 RE1)RT ANNUAL                                                    AUSTRALIA WESTERN OF COMMISSION CE
    ol   behalf on arrangements management                       cost historical the using accounting of basis accrual
    risk and insurance administer and manage to                  the on prepared been have statements financial The
                    mesotheIioma; and cancer lung                                                Preparation of Basis
    pneumoconiosis, (i.e. 1981, Act Management
    Injury     and      Compensation       Workers'                  AASB. the of pronouncements authoritative other
    the of 163 section by required as insurance of              and Concepts Accounting of Statements Framework,
    policies under liability undertake and issue, to            the Standards, Accounting over precedence take
                                                                and statements financial of preparation the governing
                                         1943; Act              provisions legislative are Instructions Treasurer's
    Insurance) Party (Third Vehicle Motor the by                the and 2006 Act Management Financial The
    required as insurance of policies under liability
    undertake and issued, be to cause or issue, to                                                          statements.
                                                                financial the to notes individual in disclosed
                              are: functions statutory Main     are effect financial resulting the and modification that
                                                                of details results, reported the upon effect significant
                                       Activities Principal     or material a has and required is modification Where
                     contracts. insurance general writing                                             sector. public the
    from arising transactions all of consist Commission         across reporting appropriate and consistency ensure
    Insurance the of activities insurance general The           and certainty provide to intended are modifications
                                                                Such wording. and format disclosure, application,
                       policyholder. the affects adversely      vary to Instructions Treasurer's the by
                                                                                                               modified
    event) insured (the event future uncertain specified        are these of Several        Instructions. Treasurer's
    a if policyholder the compensate to agreeing by             the by applied as AASB the of pronouncements
    policyholder) (the party another from risk insurance        authoritative  other   and    Concepts      Accounting
    significant accepts insurer) (the party one which           of Statements Framework, the Standards, Accounting
    under contract a as defined is contract insurance An        Australian with accordance in prepared been has
                                                                which report financial purpose general a constitute
             Business Insurance General of Principles           2009 June 30 to statements financial These
                             1986. Act Australia Western                                           Statement General
    of Commission Insurance the of 4(a) Section
    under State the of right the in Crown the of Agents                  2009. June 30 ended period reporting annual
    are Corporation and Commission Insurance The                 the for entity economic the by adopted early been
                                                                 have effective yet not are but amended or issued
      due. fall they when and as liabilities its meet to able    been have that Interpretations and Standards No
    be will it that and manner normal the in operations          Pronouncements. Other and Standards Accounting
    business its continue will concern', 'going a                Australian of Application 1101), (TI 1101 Instruction
    is entity economic consolidated the that assumption          Treasurer's    by   permitted   specifically   unless
    the on prepared been have statements financial The           Interpretation or Standard Accounting Australian
                                                                 an adopt early cannot Commission Insurance The
                                                   Methods.
    and Assumptions Actuarial 3, Note at disclosed are                                  Standards of Adoption Early
    year financial next the within liabilities and assets
    of amounts carrying the to adjustment material a                                                    AASB. the by
    causing of risk significant a have that date reporting      issued as dates operative their from Interpretations
    the at uncertainty estimation of sources key other          and Standards      revised and new operations,
    and future, the concerning made assumptions Key             its to relevant where adopted has Commission
                                                                Insurance the statements financial these preparing In
                  Estimates. and Judgements Accounting
    Critical 2, Note at disclosed are statements                             Instructions. Treasurer's by modified as
    financial the in recognised amounts the on effect           (AASB) Board Standards Accounting Australian the
    significant roost the have that policies accounting         by issued as Standards Accounting Australian with
    entity's   economic    the applying of      process         accordance in prepared been have 2009 June 30
    the in made been have that judgements The                   ended year the for statements financial The
                                                  stated.                                  Compliance of Statement
    otherwise unless ($000), dollars thousand nearest
    the to rounded are values all 948, Instruction                statements. financial the preparing in (Corporation),
    Treasurer's with accordance in and dollars                  Corporation Insurance Government State the
    Australian in presented are statements financial The        subsidiary, its and Commission) (Insurance Australia
                                                                Western of Commission Insurance the comprising
     value. fair at measured are note, policies accounting      entity economic the by adopted policies accounting
    this of remainder the in detailed as which,                 significant the are below presented statements,
    liabilities and assets certain for except convention,       financial the of understanding better a facilitate To
                                                POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                               1.
                             STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
         2
             REP ANNUAL                                                          AUSTRALIA WESTERN OF COMMISSION VRANCE INS
                                                                   effective yet not are hut issued been have that
                         Costs Borrowing       123 AASB           Interpretations and Standards Accounting Australian
                                                                  following the applied not has entity economic
                    Segments Operating              8 AASB        the Consequently,     Interpretations. or Standards
                                                                  Accounting Australian any of adoption early
              Combinations Business                 3 A,ASB       the mandated not has 1101 TI Pronouncements.
                                                                  Other and Standards Accounting Australian of
                   Standards Accounting                           Application 1101, TI by permitted specifically unless
Australian    of    Adoption First-time             1   AASB      Interpretation or Standard Accounting Australian
                                           Interpretation         an    adopt early cannot entity economic The
                                                            and
                                             Amendment                                         Operative Yet Not Standards
                   Standards Affected            AASB             Accounting             Australian  of   Impact    Future
                          impact. no have will hence                                                                         2009.
and entity economic the to applicability no have                  June 30 ended period reporting annual the for entity
will interpretations and amendments following The                 economic the of statements financial consolidated
                                                                  the on impact which Interpretations and Standards
                                                                  Accounting Australian in changes no are There
                     2009. January 1 after or on
beginning periods reporting annual to applied                                                                        Standard
be to required is Standard The applied. first is                  Accounting Australian an of Application Initial
Standard the when impact financial any expect
not does entity economic The instruments.                                                                     entity.
financial to respect       with  risk   liquidity                 economic the of statements financial consolidated
and measurements value fair about disclosures                     the   on  impact    which  policies  accounting
enhanced require will and 7 AASB amends                           in changes voluntary or mandatory no are There
Standard This 1038]'. AASB & 1023 AASB
7, AASB 4, {AASB Instruments Financial about                                                           estimates
Disclosures Improving - Standards Accounting                      and policy accounting in changes of Disclosure                     (9)
Australian to 'Amendments 2009-2 AASB                   o
                                                                                           control. its under property
                     1
   2009. January after or on beginning periods                    other     and     moneys manage and invest to
 reporting annual to applied be to required
is Standard The value. fair at measured                                                                  and management;
 and     Property Investment   as    classified                   risk     and      insurance       to    relating matters
 he future in will cost, at measured and                          on Government State the to advice provide to                  o
 Equipment and Property Plant, as classified
are currently which property, investment an                                               insurance; provide to is
as use future for intended is which construction                  Commission Insurance the which of respect in
under property require will changes These 140.                    risks to relevant schemes and programs being
AASB to amendments from resulting changes
of exception the with applied, first is Standard                                 death, accidental and injury
the when impact financial any expect not                          personal diseases, industrial of prevention
does entity economic The 1038]'. & 1023 141,                      the to relating awareness public of
140, 139, 138, 136, 134, 132, 131, 129, 128,                      promotion and for, education into, research           o
127, 123, 120, 119, 118, 116, 110, 108, 107,
102, 101, 7, 5, [AASB Project Improvements                                  and injury; personal and diseases
Annual the from arising Standards Accounting                      industrial of treatment the into research             o
Australian to 'Amendments 2008-5 AASB
                                                                                               for: schemes and programs
                           2009. January 1 after                  promote         and    in,   participate or initiate, to
or on beginning periods reporting annual to
applied be to required is Standard The applied.                                            law; written any under
first is Standard the when impact financial                       them by administered or maintained funds
any expect not does entity economic The                           against or them against claims of management
equity. in changes non-owner from separately                      the of respect in authorities public those
presented are equity in changes owner                             to advice and facilities services, provide to
that require will changes These statements.
financial the of structure the change will and                                          organisations; community eligible
revised been has Standard This Statements'.                       of     behalf     on     arrangements management
Financial    of   'Presentation    101   AASB                     risk and insurance administer and manage to
            entity: economic the to applicable where                                authorities; public Government)
date, application their from applied be will These                (State      Government      Australian    Western
                             (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                                  1.
                            STATEJ]ENTS FINANCAL THE OF PART FORMNG AND TO NITES
                                                                                                                                    86
 2009 REPdT ANNUAL                                                              AIJSTRALIi\ WESTERN OF MISSION COM INSURANCE      AUDITED
                                                                                                                                    OAG
 ej*it. parent the being Commission, Insurance the
of statements financial the combine entity economic
the of statements linancial consolidated The
                                                                                  [AASB139]. Items Hedged
                               Consolidation of Basis            (h)              -
                                                                           Eligible Standards AccoLinting
                                                                                  Australian to Amendments     2008-8 AASB
Customers from Assets of Transfers         18 Interpretation                      136]. AASB & 127 AASB
                                                                          121, AASB 118, AASB 1, [AASB
                              Owners.                                        Associate or Entity Controlled
 to Assets Non-Cash of Distributions       17 Interpretation            Jointly Subsidiary, a in Investment
                                                                        an of Cost - Standards Accounting
                   Operation. Foreign                                           Australian to Amendments       2008-7 AASB
    a in   Investment Net a of Hedges      16 Interpretation
                                                                                                   1
                                                                                       5]. ASB & [AASB
                          Estate. Real                                    Project Improvements Annual the
 of Construction the for Agreements        15 Interpretation            from arising Standards Accounting
                                                                        Australian to Amendments Further       2008-6 AASB
  Arrangements Concession Service          12 Interpretation
                                                                                                    107]. &
                     Liabilities Similar                                9 Interpretations and 139 138, 137,
 and Restoration Decommissioning,                                        136, 134, 133, 132, 131, 128, 121,
                  Existing in Changes       1   Interpretation          2,4,5,7,101,107,112,114,116,
                                                                         1, [AASB5 127 AASB and 3 AASB
            amendments. the adopting                                    from arising Standards Accounting
        of date the on applied be shall                                         Australian to Amendments       2008-3 AASB
  it then available, not is information
          necessary the unless leases                                       2]. Interpretation & 139 AASB
    existing to retrospectively applied                                   132, AASB 101, AASB 7, [AASB
 be to is requirement new This 117.                                      Liquidation on arising Obligations
     AASB in guidance lease general                                              and Instruments Financial
the under lease operating or finance                                              -
                                                                         Puttable Standards Accounting
       a either as classified be should                                         Australian to Amendments       2008-2   ASB
     land involving leases 117, AASB
  to amendments the Under 139]. &                                                           Cancellations.
136 118, 117, 107, 101, 8, 5, [AASB                                     and Conditions Vesting Payments:
    Project Improvements Annual the                                    Share-based - Standard Accounting
  from arising Standards Accounting                                            Australian to Amendments        2008-1 AASB
  Australian to Amendments Further              2009-5 AASB
                                                                                               101. AASB
              16]. & 9 Interpretations                                  from arising Standards Accounting
  AASB and 138 AASB and 2 [AASB                                         Australian to Amendments Further      2007-10 AASB
    Project Improvements Annual the
  from arising Standards Accounting                                                             101. AASB
           Australian to Amendments             2009-4 AASB             from arising Standards Accounting
                                                                                Australian to Amendments      2007-8 AASB
                                  123].
AASB & 111 AASB 1, [AASB Entities                                                                      121.
Sector Public Not-for-Profit of Costs                                    & 1 Interpretations and 138 AASB
 Borrowing - Standards Accounting                                      & 116 AASB 111, AASB 107, AASB
         Australian to Amendments               2009-1 AASB                101, AASB 1, [AASB 123 AASB
                                                                        from arising Standards Accounting
                               Owners.                                           Australian to Amendments     2007-6 AASB
 to Assets Non-Cash of Distributions
              17- Interpretation AASB                                                 1038]. AASB & 1023
   from arising Standards Accounting                                    AASB 136, AASB 134, AASB 127,
            Australian to Amendments        2008-13 AASB                 AASB 19, AASB 107, AASB 102,
                                                                          AASB 6, AASB 5, [AASB 8 AASB
                            Entities.                                   from arising Standards Accounting
 Not-for-Profit Among Combinations                                              Australian to Amendments      2007-3 AASB
  Business - Standards Accounting
          Australian to Amendments          2008-11 A.ASB                       Reports Financial Concise       1039    MSB
         101. AASB with Consistency                                                 Statements Financial
     for 1049 toAASB Amendments                 2008-9 MSB                     Separate and Consolidated         127 AASB
                          (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                            I
                         STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
                                                                                                                                   86
     2009 RT RH' ANNUAL                                                  AUSTRALIA WESTERN OF COMMISSION NSIJRANCE               AUDITED
                                                                                                                                  OAG
                                                              an of or goodwill of recognition initial the from
                                               authority.     arises liability tax income deferred the when
taxation same the and entity taxable same the
to relate liabilities and assets tax deferred the and                          except: differences temporary taxable
liabilities tax current against assets tax current offset     all for recognised are liabilities tax income Deferred
to exists right enforceable legally a if only offset
are liabilities tax deferred and assets tax Deferred                             base. tax corresponding their and
                                                              sheet balance the in amounts carrying the between
                                   Statement. Income          differences temporary of taken is account whereby
the through not and equity in recognised are equity           approach liability sheet balance comprehensive
in directly recognised items to relating taxes Income         a    using   for   accounted     is  tax Deferred
                                                      date.                                             Tax Deferred
balance the at enacted laws and rates tax on based
settled, is liability the or realised is asset the when             date. balance at rates tax utilise and legislation
year the to apply to expected rates tax at measured           Tax Income the follow exceptions) limited (with
are   liabilities and assets tax income Deferred              rules These NTER. the of rules the under calculated
                                                              as Finance and Treasury of Department State the
                                           recovered.         from or to recoverable, or payable, equivalent tax of
be to asset tax deferred the allow will profit taxable        amount the to reference by calculated is tax Current
future that probable become has it that extent the to
only recognised are and date balance at reassessed                                                       Tax Current
are assets tax income deferred Unrecognised
                                                                                                          Taxes.
           utilised, be to asset tax income deferred the      Income 112, AASB with comply to required is entity
of part or all allow to available be will profit taxable      the NTER, the in participation of consequence a As
sufficient that probable longer no is it that extent the
to reduced and date balance at reviewed are assets
                                                                                                    Government.
tax income deferred all of amounts carrying The               State the by approved directions and guidelines
                                                              NTER the by governed is equivalent tax income
                        utilised. be can difference           the of respect in liability the of calculation The
temporary the which against               available
be will profit taxable and future foreseeable
                                                                                                 imposts. tax-based
the in reverse will difference temporary the                  similar bear they that ensuring by enterprises trading
that probable is it that extent the to recognised             owned privately and government between neutrality
only is asset tax deferred a case which                       competitive achieve to is NTER the of purpose The
in ventures, joint in interests or associates
subsidiaries, in investments with associated                                     Fund. Insurance Government the
is difference temporary deductible the when                   for except NTER, the to subject are entity economic
                                                              the of Funds All (NTER). Regime Equivalent Tax
                                 or loss; or profit           National the within operates entity economic The
taxable nor profit accounting the neither affects
transaction, the of time the at and, combination                                    Accounting Effect Tax Income          (I)
business a not is that transaction a in liability
or asset an of recognition initial the from
                                                                      entity. economic the by not and Government
arises difference temporary deductible the                    State the by controlled are assets their as
to relating asset tax income deferred the when                consolidated not are Fund Insurance Community the
                                                              and Fund RiskCover the of statements financial The
            except: utilised, be can losses tax unused
and credits tax unused of carry-forward differences,                                            full. in eliminated are
temporary deductible which against available                  entity consolidated the within arising losses or profits
be will profit taxable that probable is it that extent        unrealised and transactions balances, inter-entity all
the to recognised are assets tax income Deferred              statements, financial consolidated the preparing In
                           future. foreseeable the                                  year. previous the in adopted
in reverse not will difference temporary the that             those with consistent are stated otherwise unless
probable is it and controlled be can difference               and entity economic consolidated the in entity each
temporary the of reversal the of timing the                   by applied been have policies accounting Consistent
 and ventures, joint in interests or associates
 subsidiaries, in investments with associated                                                                entity.
is  difference temporary taxable the when                     parent the as period reporting same the for prepared
                                                              are Corporation the of statements financial The
              or loss; or profit taxable nor profit
accounting the neither affects transaction, the                                     Statements. Financial Separate
of time the at that, and combination business                  and Consolidated 127, AASB with accordance
a not is that transaction a in liability or asset             in entity controlled a being Corporation, the and
                          (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                          1.
                         STATEMENTS FNANCIAL THE OF PART FORMING AND TO NOTES
     8?
                                                                                                                               86
     RT2009 REP ANNUAL                                                 AUSTRALIA WESTERN OF COMMISSION tRANCE                AUDITEb
                                                                                                                              OAG
                                                                              flows. cash operating as classified are
                                                             ATO. the to payable or from recoverable are which
                                                             activities, financing and investing from arising flows
                                                             cash of component GST the and basis gross a on
                                                             Statement Flow Cash the in included are flows Cash
                                        basis.
pro-rata a on year the in written premium                                          Sheet, Balance the in payables
the apportioning by determined is liability                  or receivables of part as included is ATO the from
This Liability. PremiLim Unearned an as Sheet                recoverable or to payable GST of amount net The
Balance the in recognised is date balance
at Statement Income the in earned not hence                              included. GST of amount the with
and date balance to subsequent insurance                     stated are which payables and receivables
of periods for risks to relates which receivable
or     received   premium    of   proportion   The                           and applicable; as item expense
                                                             the of part as or asset the of acqLlisition of
                             Premium Unearned                cost the of part as recognised is GST the case
                                                             which in (ATO), Office Taxation Australian
                          business, Reinsurance              the from recoverable not is services and goods
Inwards writing ceased Corporation the                       of purchase a on incurred GST the where
when 1992 to prior occurring losses for claims
long-tail certain of cost final the by affected                                    except: GST of amount the of
premiums adjustment to relates Reinsurance                   net recognised are assets and expenses Revenues,
Inwards     to   relating   revenue    Premium
                                                                                 (GST) Tax Services and Goods           U)
                      measured. reliably be can
it where insurance of classes those for only                               Act. Commonwealth relevant the under
recorded is business Unclosed        Contracts'.             tax that from exempt not were it if year financial
Insurance    'General    1023,    AASB      with             the of respect in liable been have would entity
accordance in date balance to subsequent                     parent consolidation tax the which for tax income
 received premiums of basis the on revenue as                any of amount the to equal is year, financial each
 recorded are business unclosed for Premiums                 of respect in Finance and Treasury of Department
                                                             State the to payable sum, equivalent tax The
 underwritten. risks of pattern the approximates
closely which time, on based business,                                           arrangement. the with accordance
reinsurance for indemnity of period the over                 in Corporation the and Commission Insurance
and business direct for contract the of period               the between payable or paid amounts contribution
the over date attachment the from Statement                  tax the to relation in group the of member each by
Income    the in recognised is revenue                       receivable or to, payable as recognised are amoUnts
Premium earned. been has it when Statement                   group, tax-consolidated the in entities the between
Income    the in recognised is business,                     arrangement tax-funding a of existence the to Due
unclosed     including      revenue,    Premium
                                                                                                   consolidation.
             parties. third of behalf on collected           tax under applying values tax the and entity each
amounts other and GST duty, stamp excluding                  of statements financial separate the in amounts
but levies insurance compensation workers'                   carrying the to reference by approach group" within
including insurers, other or policyholders to                taxpayer "separate the using group consolidated
charged amounts includes revenue Premium                     tax- the of members the of statements financial
                                                             separate the in recognised are group consolidated
                                business.                    tax- the of members the of differences temporary
reinsurance  from and    business   direct                   from arising assets tax deferred and liabilities
from premiums comprises revenue Premium                      tax deferred expense/benefit, equivalent Tax
                              Revenue Premium                                           group). tax-consolidated
                                                             the of entity head (as Commission Insurance the by
                recognised. is revenue before met be         recognised are Corporation the from arising credits
also must criteria specific following The measured.          tax and losses tax unused from arising assets
reliably be can revenue the and entity economic              tax deferred and assets and liabilities tax Current
the to flow will benefits economic that probable
is  it that extent the to recognised is Revenue                             1
                                                                 2002. July from effect with group consolidation
                                                             tax a in entity) parent consolidation tax (the
                  Recognition Income and Revenue       (k)   Commission Insurance the join would Corporation
                                                             the that resolved Corporation the of Directors
                                              ATO.           of Board the and Commission Insurance the of
the to payable or from recoverable amounts of gross          Commissioners of Board the 2003, February 26 On
disclosed are contingencies and Commitments
                                                                                               Consolidation Tax
                            (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                     1.
                            STATEMENTS RNANCIAL THE OF PART FORMING AND TO NOTES
                                                                                                                             86
               RE ANNUAL                                               AUSTRALIA WESTERN OF NS.JRANCECOMrvIISSION          AUDITED
                                                                                                                             OAG
          /1
  recognith. and deferred are business insurance
obtaining in incurred costs Acquisition premiums.
insurance party third vehicle motor of collection
the administering for Infrastructure) and Planning                                                  Statement.
for Department (formerly Transport of Department             Income the in recognised are losses and
the by charged costs all to relate costs Acquisition         gains These date, balance at held Properties
                                                             Investment       and    investments of       value
                                   Costs Acquisition   (0)   fair the in changes from arise gains unrealised
                                                             and applicable) where property investment
               year. financial that in Statement
                                                             (including assets investment of sale the from
Income the in losses or gains exchange as                    arise losses and gains Realised unrealised.
recorded are differences exchange Resulting                  or realised he may Properties Investment
date. that at current exchange of rates using                as     categorised     assets     of   revaluation
currency Australian to converted are date                    from     resulting   losses     and   gains   and
balance at currencies foreign in denominated                 Loss, or Profit through Value Fair at Assets
entity economic the of liabilities and Assets                Financial as Sheet Balance the in categorised
                                                             assets     to relating      losses   and    Gains
                                   transactions.
the of dates the at current exchange                                                   Values Fair in Changes
of rates the at dollars Australian to converted              Including    Loss     I    Income Investment
are    currencies    foreign in denominated
entity    economic      the  of    Transactions                                     payable. and declared
                                                             are they date the on income as recognised
                                    (sAUD).                  are trusts investment from Distributions
dollars Australian is entity economic the                    ex-dividend.  become    shares    underlying
of currency presentation and functional The                  the when recognised is income Dividend
                                 Currencies Foreign                                            Income Dividend
                      received. service reinsurance                Income. Other as reported is Properties
of pattern the with accordance in expense                    Occupied Owner of respect in Income
an as recognised is reinsurers to ceded Premium
                                                                             Income. Investment as reported
                              Reinsurance Outwards           is Properties Investment of respect in Income
                                    recommendations.                                        leases. relevant
its of all or any review to Commission Insurance             the of term the over apportioned Commission,
the invite or refuse approve, may who Minister               Insurance the by met expenses incentive
responsible the by considered are recommendations            lease agreed other and periods rent-free
premium Commission's Insurance the that requires             of value the of out arising amount proportional
1943 Act Insurance,.l Party (Third Vehicle Motor The         a includes income Rental basis. receivables a
                                                             on recognised is rentals property from Income
        year. financial next the of commencement the
at Fund the in exist to expected earnings retained                                   Income Rental Property
the and report actuarial independent an account
into takes also assessment This year. financial                                                    method.
following the in arising expense administration              interest effective the on based accrues,
and claims meet to necessary be will which revenue           interest the as recognised is revenue Interest
premium the of assessment an makes Commission
Insurance the 1943, Act Insurance) Party (Third                                             Revenue Interest      o
Vehicle Motor the of 3T Section with accordance In
                                                                            3. Note in out set are used rates
      Setting Premium                                  (I)
                        - Fund Insurance Party Third         discount and inflation of details The claims.
                                                             outstanding for liability the as basis same the
              purchaser. the to transfer control             on calculated receipts, future expected the of
ownership of rewards and risks significant                   value present the as measured are insurance
the when recognised are equipment and plant                  of classes long-tail for receivable Recoveries
property, of sale the from gains/losses Net                  revenue.    as     recognised    are    (IBNER)
                                                             reported enough not but incurred claims
                     Equipment and Plant                     and (IBNR) reported not but incurred claims
Property, of Sale from Gains/Losses Net                      paid, not but reported claims claims, paid
                                                             on revenue recoveries other and Reinsurance
            Currencies'. 'Foreign 1(n) Note Refer
                                                                                                      Revenue
                   Revenue Exchange Foreign                  Recoveries      Other       and      Reinsurance
                           (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                   1.
                           STATEMENTS FINANCAL THE OF PART FORMING AND TO NOTES
                                                                                                                                       86
 2009 WORT R ANNUAL                                                          AUSTRALIA WESTERN OF COMMISSION INSURANCE               AUDITED
                                                                                                                                       OAG
      I
                                                                                                             liabilities.
                                         transaction.              insurance general back to held are Equipment), and
length arms an in seller willing knowledgeable a and               Plant Property, 'Nithin 116 AASB under presented
buyer willing knowledgeable a between sale orderly                 Development, or Construction under Buildings
an on based and conditions market and economic                     and Land and Buildings and Land Owner-Occupied
current to regard having evidence, market-based                    (including  assets      exceptions, minimal      With
to reference by determined is value Fair
                                                                        Liabilities Insurance General Backing Assets
      Buildings and Land Freehold of Revaluation
                                                                                          required. not are URLs and
                                            life. useful           LATs result a As premium. unearned no is there
remaining its over value fair revised the to applied is            hence and run-off in are Reinsurance) (Inwards
depreciation year, each revaluation Following only.                Corporation and Fund       General     Commission
buildings occupied owner to applied is Depreciation                Insurance   Fund, Insurance Government The
                                        Buildings.                                  required. was URL or LAT no hence
and Land both comprises property occupied Owner                    and 2009 June 30 at liability premium unearned
                                                                   no had period, three-year a covering policies issues
                                             valuer.               which Fund Diseases) (Industrial Compensation The
independent an by value fair to date balance at
annually revalued are Buildings and Land Freehold                                                  Fund. Insurance
 measurement, initial to Subsequent        cost. at                Party Third the to relation in made been only
 measured initially are Buildings and Land Freehold                has 2009 June 30 at URL the of assessment An
                                             Equipment'.                                                  19. Note Refer
and       Plant   Property,    116,   AASB    with line             (URL). Liability Risk Unexpired an as Sheet Balance
in for accounted is improvement under Land Vacant                  the in recorded is shortfall The costs. acquisition
                                                                    deferred related any then and assets intangible
                                     Equipment.                     related any down writing first by determined
and Plant Property 116, AASB with accordance in                    is deficiency      total The     Statement. Income
for accounted be to required are occupation owner                  the in immediately recognised is any, if reinsurance),
of degree significant a with Buildings and Land                    of (net deficiency        total in movement       The
                     Liabilities. Insurance General                                                 17. Note Refer liability.
Backing Assets are Equipment and Plant Property,                   claims outstanding the of estimate the by achieved
within presented Buildings and Land Freehold                       is as claims future for sufficiency of probability same
                                                                   the achieve to margin risk a applies Commission
                         Buildings and Land Freehold               Insurance The         deficient. be to deemed is
                                                                   liability premium unearned the then costs acquisition
                       Equipment and Plant Property,         (a)   deferred related and assets intangible related any
                                                                   less liability premium unearned the exceeds margin
      note. Policy Accounting this in headings Sheet               risk additional the plus claims future to relating flows
Balance relevant the under detail more in discussed                cash future expected the of value present the If
are Liabilities Insurance General Backing Assets
                                                                                                          portfolio. single
                                   liabilities. policy and         a as together managed are which and risks similar
liabilities Insurance General from arising flows cash              broadly to subject are which contracts of portfolio a
future of pattern expected the given appropriate                   of level the at performed is testing adequacy Liability
are      investments that ensure to monitored                      (LAT). Test Adequacy Liability the as to referred
closely are liabilities policy and liabilities insurance           is assessment This contracts. insurance of portions
general assets, financial of management The                        unexpired related against claims future to relating
                                                                   flows cash future expected all cover to liability
                                 Sheet. Balance                    premium unearned the of sufficiency the determine
the in value fair at valued are liabilities                        to made is assessment an date, reporting At
insurance general back to held assets Financial
                                                                                                Liability Risk Unexpired
                         liabilities. policy the of nature
the reflect to invested are liabilities policy backing                    liabilities. claims outstanding in movement the
assets Financial securities. fixed-income and cash                 and claims for payment represents expense Claims
as such investments high-quality and liquid include
liabilities insurance general backing assets Financial                                                              Claims
                                     Equipment. and                         periods. reporting subsequent in Statement
Plant Property, within presented items remaining the               Income the in recognised be will that revenue
and assets software intangible are exceptions The                  to rise give will they that probable is it where
                                                                   and measured reliably be can they where assets
                              (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                          1.
                              STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
   ¶Th
                                                                                                                             86
  2009 REPq(r ANNUAL                                                  AUSTRALIA WESTERN OF COMMISSION NSURANCE
                                                                                                                           AUDITED
                                                                                                                             OAG
Sheet. Balance the in assets other from separately
presented are and sell to costs less value fair
and amount carrying of lower the at recognised are
sale for held groups) disposal (or assets Non-current
                             Sale for Held as Classified                            follows: as are year, previous
                                                            and current the for equipment, and plant property,
Groups)       Disposal      (or  Assets Non-Current
                                                            of class each for used rates depreciation annual The
       rate. discount risk-adjusted market-determined
a using value present their to discounted applicable,                                                    annually.
                                                            reviewed are used rates The entity. economic the
where are, flows cash net future estimated
use, in value assessing In         use. in value and        by consumed be to expected are benefits economic
                                                            future the which in period the over values, residual
sell to cost less value, fair of higher the is amount
                                                            of net assets, off write to necessary rates at applied
recoverable The down. written is asset the amount,
                                                            basis, straightline a on provided is Depreciation
recoverable the exceeds asset an of value carrying
the Where         amount. recoverable their above
                                                                                           asset. hardware the
amount an at carried not are assets Non-current             of part as included are hardware of items specific
                                                            operate to required software to relating Amounts
                                  Assets of Impairment
                                                                                    total. in significant are which
                                     Statement.
                                                            items similar of group a of part a form they where
Income the in recognised are losses Impairment              than other Statement Income the to direct expensed
                                                            are this than less Amounts acquisition. of year the
                       risks. impairment any evaluate
re- to and benefits economic future asset's the             in assets as recognised are over or $1,000 costing
of consumption of level the reflect fairly /amortisation    equipment and plant of items other all and over
                                                            or $300 of cost a with hardware computer of Items
depreciation accumulated the that verify to
annually reviewed is assets of class relevant Each
                                                                                                      value.
falling. is cost replacement where or understated           in   impairment any and depreciation accumulated
materially is depreciation asset's an where                 less    cost at carried is equipment and Plant
circumstances to mainly relates risk impairment
                                                                                           Equipment and Plant
                                            amount.
recoverable their to down written are assets the                                           cost. at measured
amount, recoverable estimated the exceeds amount            are Construction or Development under Buildings
carrying the where and exists indication such any If
                                                                    Equipment'. and Plant Property, 116, AASB
                            impairment. of indicators       with accordance in for accounted be to required
for assess to monitored are conditions economic             are Construction or Development under Buildings
 and    technology processes, future expected
 in changes as such factors External recoverable. be             Construction or Development under Buildings
not may value carrying the indicate circumstances
 in changes or events when impairment for reviewed                                             earnings. retained
are equipment and plant of items varying The
                                                            to transferred be will sold being asset particular
                                                            a to relating reserve revaluation any disposal, Upon
                  Equipment and Plant of Impairment
                                                                     for. accounted is that amount carrying the in
                                        derecognised.       decrease or increase the of part forms depreciation
 is item the year the in Statement             Income
                                                            accumulated of       elimination   the on      arising
 the in included is item) the of amount carrying            adjustment the of amount The asset. the of amount
 the and proceeds net the between difference the as         revalued the to restated is amount net the and asset
 (calculated derecognition on arising loss or gain Any      the of amount carrying gross the against eliminated
                                                            is date revaluation at depreciation accumulated Any
              use. continued their from arise to expected
 is    benefit economic future no when or disposal                                                      reserve.
 upon     derecognised are equipment and Plant              revaluation asset the in asset same the of surplus
                                             -              previous a offsets directly it unless Statement
      3.7            3.8     Occupied Owner Building        Income the in recognised is deficit revaluation Any
      15             15       Improvements Leasehold
      50             50                   Vehicles Motor                                 Statement. Income the in
      33             33            Hardware Computer        recognised previously asset same the of decrement
      12             12           Fittings and Furniture    revaluation a reverses it unless Sheet Balance the
  20-25             20-25         Equipment and Plant       of section equity the in included reserve revaluation
 (%) 2008         (%) 2009                                  asset the to credited is surplus revaluation Any
                             (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                 1.
                             STATEMENTS FNANCAL THE OF PART FORMING AND TO NOTES
  9.1.
                                                                                                                               /   86
     2009 RLIORT ANNUAL                                                  AUSTRALIA WESTERN OF COMMISSION SIJRANCE              AUDITED
o            //'                                                                                                               \\ OAG
                                      1(k). Note
Refer date. balance to subsequent days 15
first the in collected premiLims of assessment
an upon based is business unclosed The                                                              used. rates
business. unclosed for policyholders from due               discount and inflation of details for 3 Note Refer
insurance Injury Personal Party Third Vehicle
Motor to relates mainly receivable Premiums                                           rates. discount risk-free using
                                                            date balance at value present a to discounted then
                             Receivable Premiums            are payments claims future expected The
                                                                                                            injury. for
                                                            compensation of period and level the in increases
                                       impairment. for      example for legislation, in changes and awards
evidence objective considered are overdue days 60           court in trends as such factors to refers inflation
than more debts or payments defaLilt debtor, the of         Superimposed         inflation. 'superimposed' and
difficulties Financial made. is provision appropriate       inflation wage) (e.g. normal as such settlement to
an collectable, is debt a whether to as doubt is            period the during arising factors by affected is which
there where as such exists impairment of evidence           expenses), management claims (including payments
objective V\Jhere       off. written are collectable        claim future of estimate' 'central adjusted an of value
not be to known are which Debts basis. ongoing an           present the is claims outstanding for liability The
on conditions, and terms appropriate their to regard
in collectability, their to as reviewed are Receivables                                 costs. settlement claims'
                                                            indirect and direct anticipated the with together
                                              Receivables
                                                                                                  claims, IBNER
               developments. adverse possible                                                       claims, IBNR
cover to adequate be will liability estimated                     paid, not but reported been have that claims
the that certainty of degree higher a for
provides margin risk The 17. Note Refer 40),                                                         comprises:
Note Refer RiskCover, (excluding insurance                  date balance at claims outstanding for liability The
of classes long-tail all for payments claims
future discounted the of estimate central the                                                    Claims Outstanding
to margin risk a added has Board the claims,
outstanding for liability the determining In                     arise. they which in year the in Statement Income
                                                            the in included are properties investment of values
      assessments. actuarial independent using              fair the in changes from arising losses and Gains
estimated are Diseases Industrial and Injury
Personal Party Third Vehicle Motor Liability,                                      depreciated. not are Property',
Public Reinsurance, Inwards Compensation,                   'Investment 140, AASB with and Contracts',
Workers' as such insurance of classes tail                  Insurance 'General 1023, AASB with accordance
long- the for claims outstanding for liability The          in and Commission Insurance the of activities
                                                            investing the to integral are Properties Investment
     settlement. claim's of amount the establish
to and/or liability or negligence of issue                                            date. balance at transaction
the resolve to involved be may proceedings                  length arm's an in seller willing knowledgeable a and
legal Protracted        claims. those to rise               buyer willing knowledgeable a between sale orderly
giving events the of occurrence the of year one              an on based and conditions market and economic
within settled not typically are claims Long-tail           current to regard having evidence, market-based
                                                            to reference by        determined is value Fair
                                   claims Long-tail
                                                                                         prices. market active on
                                        estimate.           based is which value, fair to valuer independent an
central a using assessed internally are Motor,              by date balance at annually revalued are properties
and Property as such classes, short-tail the                investment cost, at recognition initial Following
for claims outstanding for liability RiskCover's
                                                                                        Liabilities. Insurance
                     claims. those to rise giving           General Backing Assets are Property Investment
events the of occurrence the of year one within             within presented Buildings and Land Freehold
settled typically are claims where business
of classes to relate claims short-tail These                                                  Properties Investment
          reporting. Entity Consolidated the of part a                              assets. current as recognised
    form not does stated previously as RiskCover            are year financial next the within sold be to
    40. Note refer Fund, RiskCover the to                   sale for held groups) disposal (or assets Non-current
    relating claims short-tail of number a are There
                                                                                             amortised. or depreciated
                                   claims Short-tail        not    are   sale   for   held     as classified Assets
                              (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                    1.
                             STATEMENTS FINANCIAL THE OF PART FORMNG AND TO NOTES
      92
                                                                                                                                86
    2009
           Ru/'PORT
                      ANNUAL                                        AUSTRALIA WESTERN OF C0MMSSION URANCE                   AUDITEIi
4              77k                                                                                                              OAG
                                                                                                   service.
Superannuation State Gold the to transferred              of periods and departures staff with experience
who     employees   for  benefits     transfer            rates, salary in increases future to given been
pre- the and Scheme Pension the to relation In
                                                          has consideration liability, the determining In
                                                          outflows. cash estimated future their of value
Assets Plan of Value Fair        - Superannuation
                                                          present the at measured are date, balance
                                                          the of months twelve within settled be to
                                      Statement.          expected not are which leave, service long to
Income the through account to brought                     entitlements employee of respect in Liabilities
are assessments actuarial in Movements
assessment.      actuarial    independent     an
                                                                                        settled. is liability
following determined is liabilities the of value          the when paid he to expected rates salary
present The date. balance at for provided is              the using amounts nominal their at measured
payments future for liability the and unfunded            are date, balance the of months twelve
are Scheme Superannuation           State Gold            within settled be to expected are which leave,
the to transferred who employees for benefit
                                                          annual and leave service long salaries, to
pre-transfer the and Scheme Pension The                   entitlements employee of respect in Liabilities
                      21. Note Refer GESB.
                                                                                          Leave
the to contributions employer of payments                 Annual and Leave Service Long Salaries,
by extinguished are Scheme Super GESB
and Scheme Superannuation State West
                                                                                             Benefits Employee      (bb)
Scheme, Superannuation State Gold the under
charges superannuation for liabilities The                    obligation. of amount the of made be can estimate
                                                          reliable a and obligation, the settle to required
        Finance. and Treasury of Department               be will benefit economic embodying resources of
State the to monthly paid is scheme                       outflow an that probable is it event, past a of result
Pension benefit defined the under pensions                a as constructive) or (legal obligation present a has
members meet to liability employer's The                  entity economic the when recognised are Provisions
                                               GESB.
                                                                                                      Provisions    (aa)
by administered are Schemes these of All
                                                                   days. 30 within settled generally are payables
           1992. Act (Administration) Guarantee
                                                          Current services. or assets of purchase a of result
Superannuation Government's Commonwealth                  a as payments future make to obliged becomes
the with complying funds accumulation are                 entity the when recognised and cost at carried
schemes these Both Scheme. Super Board                    are   billed, yet not accruals including Payables,
Superannuation       Employees      Government
the of      members     become      2006 April
                                                                                                        Payables
16 after or on employment commenced who
staff those and 1987), Act Superannuation                          impaired. be may asset the that indication
Employees          (Government          Scheme            an is there whenever     impairment for tested
Superannuation State West the of members                  and years four over amortised is software This
non-contributory    become schemes these
of either to contribute not do who staff All                                  software. computer implementing
1995. December 30 from effect with members
                                                          and designing on progress in work to relating
new to closed scheme sum lump benefits
                                                          amounts include assets Intangible hardware.
defined a Scheme, Superannuation State Gold               of items specific operate to required nature
the to or 2000, Act Provisions) Consequential
                                                          essential an of not is which software computer
and (Transitional Superannuation State the                to relate primarily reported assets intangible The
of 26 Section of virtue by apply to continued
provisions whose but 1986 August 15 from                                          capitalised. are recognition
effect with members new to closed scheme                  for   qualify that assets intangible generated
benefits defined a 1938, Act Benefits Family              internally and assets intangible of Acquisitions
and Superannuation repealed the in out set as
Scheme Pension the to contribute may Staff                                             benefits. economic future
                                                          have and Commission Insurance the by controlled
                                   Superannuation         identifiable, separately are that substance, physical
                                                          no with assets non-monetary are Assets Intangible
                                 used. are liabilities,
related the of maturity of terms the match                                                    Assets Intangible
closely most which date, balance at securities
Government Commonwealth to attaching                                                 cost. amortised at
rates interest the outflows, cash estimated               carried and recognised are receivables Other
future the of value present the determining In
                                                                                       Receivables Other
                               (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                    1.
                               STATEMENTS FINANCAL THE OF PART FORMING AND TO NOTES
                                                                                                                      86
 2009 ORT RE ANNUAL                                              AUSTRALIA WESTERN OF COMMISSION ANCE               AUDITb
         7                                                                                                                OAG
rate interest an exchange to parties two
                                                                                security. underlying the
between agreement confirmed a is agreement             with line in amortised is security discount The
rate forward A      yield. or price specified
a at date futura specified a at settle to
                                                                     value. carrying at arrive to amount
agrees seller the which in instruments financial       principal the against netted discount unearned
of delivery delayed the for agreements                 the with amount principal their at recorded
legal are contracts futures and Forward               initially are securities discount of Purchases
              Contracts Futures and Forward                                    interest. of rate coupon
                                                       the using monthly accrued is securities such
       (a). 25 Note in out set is undertaken are      for income Interest value. fair at recognised
transactions derivative which for purpose The         initially are securities coupon of Purchases
               flows. cash future discounted as         securities. (non-interest-bearing) discount and
such principles, valuation accepted generally         securities (interest-bearing) coupon namely
or prices market of source verifiable most
                                                      securities, of types two are There          date.
the using basis market to marked a on for             (transaction) trade at recognised are securities
accounted are instruments financial Derivative        of sales and Purchases securities. discount
                                                      short-term and bonds include Securities
             Instruments Financial Derivative
                                                                                            Securities
                     value. fair to equates which
date balance at value market of calculation                               cash. into convertible readily are
the for basis the forms which holders,                they that basis the on current as treated are trusts,
unit to advised is price unit A trust. the within     interest fixed and infrastrLlcture property, unlisted
held properties of valuations independent upon        and properties freehold than other Investments
based values market at Trusts the of Trustee
the by valued are Trusts Property Unlisted                                                      10. Note
                                                      Refer    value. fair at measured subsequently
                      Trusts Property Unlisted        and cost at recognised initially are These entity.
                                                      economic the of Liabilities Insurance Genera! back
                                        date.         to considered are Loss or Profit through Value Fair
balance at ruling exchange of rates at dollars        at Assets Financial as presented assets Investment
Australian to converted are currency foreign
in denominated values Unit        liabilities. its                                                         Loss
of value the assets, gross trusts unit unlisted       or Profit through Va'ue Fair at Assets Financial            (ee)
the of value the from deducting by calculated
is NAV The       year. financial the of day                            revenue. premium corresponding of
last the on redemption for applicable unit per        recognition the as basis same the on for accoLinted
(NAV) Value Asset Net the using determined            are payable or paid charges, WA) (WorkCover
are Trusts Assets ,Alternative and Interest           Commission Management Injury and Compensation
Fixed Equity, unlisted in units of values Fair        Workers' as such charges, and levies Statutory
                     Trusts Assets Alternative                                          Charges Statutory         (dd)
and Interest Fixed Equity, Unlisted in Units
                                                                                                 14. Note
     date. balance at price bid quoted securities     Refer     year. one than less generally is which
the using market to marked are trusts equity          expenditure, the from benefit to expected periods
listed and Shares cost. at booked initially are       financial the over amortised are Costs Acquisition
trusts equity listed and shares of Purchases          Deferred periods. reporting future in recognised
                                                      be will that revenue premium to rise give will that
             Trusts Equity Listed and Shares          expense represents it that recognition in deferred
                                                      is costs acquisition of portion a date, balance At
             revenue. unrealised as recorded
is value market the and securities) (coupon                                   Costs Acquisition Deferred          (cc)
amount cost the or securities) (discount
amount amortised the between difference The                                                  21. Note
process. market to marked the by adjusted             Refer Scheme. Pension this under benefits
are securities coupon of costs The           type.    for liability employer's the of pre-funding no
and quality maturity, comparable of securities        is there that basis the on account to brought
for prices at available, not are prices such if or,   is liability This      Commission. Insurance
price bid quoted at valued are securities The         the of liability a as recorded is assets of
year. financial the of day business last the          value fair net the over benefits superannuation
of close the at market to marked are Securities       accrued of excess any of value the Scheme,
                          (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                                   1.
                         STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
                                                                                                                          86
 2009 REPORT ANNUAL                                                            AUSTRALIA WESTERN OF COMMISSION URANCE    AUDTEb
                                                                                                                          OAG
  &
                         1986. Act Australia Western                       value. fair their to approximate deposits
of Commission insurance the of 4(a) Section                        these of amounts carrying The          drawn. or
under State the ol right the in Crown the of Agents                deposited amounts the of value face at carried
are Corporation   and Commission Insurance The                     are margins for brokers with held Deposits
                       Information Corporate Other         (kk)                                 held. options the
                                                                   of obligations cash the cover to Commission
                           services. Commission's                  Insurance the by held amounts monetary
Insurance the of usage their to proportion in fees                 are margins for brokers with held Deposits
management charged are Corporation the and Fund
Insurance Community the Fund, RiskCover The                               Margins for Brokers with held Deposits
                                    Fee Management                  Statement. Income the in investments of value
                                                                   fair the in change a as account to brought
 value. fair at carried are subsidiaries in Investments            and disposal on realised is loss or gain a
                                                                   into, entered is transaction sale closing a if or
                        Subsidiaries in Investments                date, expiration stipulated its on expires option
                                                                   the If price. 'Bid' at daily priced are Options
                 value). in change of risk insignificant
an to subject are and cash to convertible readily                         option. the of writer the were purchaser the
are which of (all activities insurance general entity's            if apply would opposite The expiry. at or until
economic the to integral investments are which call,                 LI time any at price exercise the at option the
at deposits and securities discount short-term with                by covered instrument financial the buy/sell to
together l(gg), Note refer liability, account bank any             right the purchaser the gives option call/put A
of net banks, in and hand on assets cash includes
cash Statement, Flow Cash the of purpose the For                      period. specified a within and price specified
                                                                   a at instrument financial a sell or purchase
                                       value. fair their           to obligation, the not but right, the option the
to approximate assets cash of amounts carrying                     of holder the allow that contracts are Options
The    drawn. or deposited amounts the of value
face at carried are assets equivalent cash and Cash                                                          Options
                  Assets Equivalent Cash and Cash          (hh)                    investments. of value fair the in
                                                                   change a as Statement Income the in recorded
                     value. fair to equates and date               is loss or gain Any          exchange. futures
balance at account bank the on unpresented bLit                    recognised a on traded contract relevant the of
drawn cheques of value the includes and balance                    price hid quoted last the of value the on based
account ledger general the represents Sheet                        market to marked are contracts futures index
Balance the in shown overdraft bank for liability Any              price share and bill bank bond, of value The
                                      Overdraft Bank       (gg)                                             recorded.
                                                                    is closed was it time the at value the and into
                                  value. carrying                   entered was forward the time the at value the
historical the is value fair market, organised                      in difference the to equal loss, or gain realised
an in traded not are liabilities financial Where                    a closed, is forward the When         Statement.
                                                                   Income the in loss or gain exchange foreign
             Liabilities Financial Recognised                       unrealised an as recorded is value market
                                                                   in change the and daily market to marked
                    Trusts. Property and Assets                     is forward The rate. exchange currency the
Alternative Interest, Fixed Equity, in units                       in changes with fluctuates (forwards) contracts
unlisted of value fair of determination for 1(ee)                  currency foreign forward of value market The
Note Refer impairment. or value in diminution
for   provision any of net cost carrying                                                        Statement. Income
historical the is value fair market, organised                     the in recorded is loss or gain unrealised
an in traded not are assets financial Where                        any time which at occurs, transaction
                                                                   underlying the until creditors' 'investment
                    1(ee). Note refer market,                      or    debtors'   investment    to   adjustment
organised an in traded assets financial For                        corresponding a with cash in met are
                                                                   calls cash daily and requirements margin Initial
                Assets Financial Recognised                        rates. exchange in movements of effects
                                                                   financial adverse possible minimise or avoid
                   basis: following the on determined              to commitments purchase anticipated and
are liabilities and assets financial of values Fair                holdings hedge to used are contracts Futures
      Liabilities and Assets Financial of Value Fair        (ft)                                  date. future given
                                                                   a at   amount principal notional a on differential
                          (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT
                         STATEMENTS HNANCAL THE OF PART FORMING AND TO NOTES
                                                                                                       86
c)\   2009 REORT ANNUAL                                 AUSTRALIA WESTERN OF COMMISSION RANCE        AUDITB
                                                                                                          OAG
                                                      customericwa.wa.qov.au                Email
                                                       www.riskcover.wa.qov.au
                                                          www.icwa.wa.qov.au            Websites
                                                             3690 9264 (8) +61          Facsimile
                                                             3333 9264 (8) +61         Telephone
                                                                                 6845 WA PERTH
                                                                                  U1908 Box GPO
                                                                                  Address Postal
                                                                                 6000 WA PERTH
                                                                          Terrace George's St 221
                                                                               Centre Forrest The
                                                       Australia Western of mission Corn Insurance
                                                                     Business of Place Principal
                          (continued) POLICIES ACCOUNTING SIGNIFICANT OF STATEMENT                   1.
                          STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
       ¶11
   20 REPORT ANNUAL.                                                                     AusrRAUA WESTERN      OF ISSLON COMM URANCE
                                                                                                                                         L86
                                                                                                                                       AUDITED
                                                                                                                                       OAG'
                                               GESB. of behalf on assessment actuarial independent an following determined
is liabilities the of value present The date. balance at for provided is paynlents future for liability the and unfunded are
Scheme Superannuation State Gold the to transferred who employees for benefit pre-Iransfer the and Scheme Pension The
                                                                                                            Superannuation
                         evidence. sales comparable of analysis and properties individual the of streams income future projected
on iriter-alia based are valuations These Properties. Investment and Equipment and Plant Property, under presented property
each for valuers licensed independent from obtained are valuations Construction, Under Buildings of exception the With
                                                                                                        Valuations Property
      measured. reliably be can amounts these and it to due amounts receive not may Commission Insurance the that evidence
objective is there where recognised is Impairment risk. credit and counterparty as such factors consideration into taking
received, be Liltimately will that amounts the of reflective is balance the that ensure to basis periodic a on assessed is assets
these of recoverability the addition, In methods. above the using calculated also are contracts reinsurance from arising Assets
                                                                             Contracts Reinsurance From Arising Assets           (h)
                 year-end. at liability claims outstanding the deriving in used assumptions specific the of details for 3 Note Refer
                                                                                                 Margin. Risk applied An
                                                                              and Recoveries; Reinsurance of Estimates
                                                     rates; discount and inflation superimposed inflation, of effects The
                                                                   altitudes; social or environment legal the in Changes
                                            periods; previous from statistics the with compared claims, incurred or paid
of recording and/or development the down slow or accelerate might which processes management claims in Changes
                                                                                   include: These claims. settled previously
of cost the with compared when decrease or increase to claims outstanding of cost the cause might which or statistics
underlying the in distortions create may which uncertainties or changes for appropriate, where made, also are Allowances
                                                                                                                       made.
been has expenses administration claims for allowance the in decrease significant a result, a As expenses. future of forecast
accurate more a enabled has and portfolio run-off the at management future the for plan clear a in resulted has This portfolio.
Corporation remaining the for plan commutation a implement and create to engaged was consultant specialist a 2009, During
                                                                   experience. past with consistent be will claims current the
of pattern development the that assume which and experience, historical of analyses statistical utilise which models, actuarial
of number a employing valuation actuarial independent an upon based is claims outstanding for liability of estimate The
                                         occurred. have claims the to rise giving events the after years many until lodged be not
may claims IBNR available. usually is claim the about information more where notified, already claims of estimation
                                                                                                                           the than
uncertainty of degree greater a to subject generally is claims IBNR of estimation the particular, In established. liability original
the from different he to prove will outcome final the that likely is it provisions, claims establishing in uncertainty the given
exposures, claims outstanding regarding obtained is information adequate that ensure to taken are steps reasonable all Whilst
                         margin. risk prudential a and expenses, administration claims retLirn, investment inflation, superimposed
 and increases wage future for allowance an as: such factors account into take recoveries and claims Outstanding below.
(b) at discussed are and 9, Note refer Receivables, as Sheet Balance the in appear recoveries Those credits. tax appropriate,
where and, reinsurance including recoveries, all of respect in made also are Estimations (IBNER). reported enough
not but incurred claims and (IBNR) reported yet not but incurred claims of cost the including date, balance the at settled not but
incurred claims of cost the is This Sheet. Balance the in liability claims outstanding the for year-end the at made are Provisions
                                                                             Poflcies Insurance Under Arising LiabiUties        (a)
                                                                                                                below: described
are applied are estimates critical which in areas key The circumstances. the under reasonable be to believed are that events
future of expectations including factors, other and experience historical on based are and evaluated continually are judgements
and Estimates liabilities. and assets key certain of respect in assumptions and estimates makes Commission Insurance The
                                         ESTIMATES AND JUDGEMENTS ACCOUNTING CRITICAL                                            2.
                   STATE)I1ENTS FINANCAL THE OF PART                                   FORNG             AND TO NOTES
 REPORT'9009 ANNuAL                                                                      AuSTRALIA WESTERN OF COMMISSION ANCE             IN
                                                                                                                                           86
                                                                                                                                        AUDITED
                                                                                                                                        OAG'
              experience. past on based are Factors Payment Estimates Case Projected and Estimates Case of Development
IBNR, Settlement, to Term Average Size, Claim Average Claims, of Number Recoveries, Party Third as such Factors: Other
                                                    detail. more for 17(c) Note Refer studies. benchmark on based Margin: Risk
                                                                                                                         experience.
past of average long-term the on based models actuarial the of one from internally derived Inflation: Superimposed
                                                                                                              retentions.
reinsurance the exceed to, estimated are or have, that claims from recoveries expected on based Recoveries: Reinsurance
                                   expenses. of breakdown and experience past from derived Expenses: Management Claims
    2009. June 30 on Bonds Treasury Commonwealth traded on yields market the from derived rates risk-free Rates: Discount
                            firm. research economics party third independent respected a of forecasts on based Rates: Inflation
                                             below: provided is assumptions these determine to used factors the of description A
                                                                                   Assumptions Determine To Used Processes
                                                                           margin. risk prudential a for allowance an adding
                                           and recoveries; other and reinsurance for allowance an by amount the reducing            -
                                                expenses; management claims associated for provide to amount an adding              -
                                                                                                                                    -
                                                                                credits; tax of effect estimated the deducting
                                        rates; risk-free at return investment for allow to payments claim inflated discounting
payment; of date the to values current from inflation future of effect the for allow to payments claim projected the adjusting      -
           class; each to appropriate models actuarial of variety a using values cLirrent in payments claim future projecting
                                                                       by: estimated is claims outstanding for liability ultimate The
                                                                                       below. described is Commission Insurance
the by underwritten insurance of classes various the of liability claims outstanding the of value the determining of process The
   Corporation. the subsidiary, its and funds its through classes insurance of number a underwrites Commission Insurance The
                                                            METHODS AND ASSUMPTIONS ACTUARIAL
                   value. fair to equates which date balance at value market of calculation the for basis the forms which holders,
unit to advised is price unit A trust. the within held properties of valuations independent upon based values market at Trusts
the of Trustee the by valued are Trusts Property Unlisted date. balance at current exchange of rates at dollars Australian to
converted are currency foreign in denominated values Unit liabilities. its of value the assets, gross trust's unit unlisted of value
the from deducting by calculated is NAV The year. financial the of day last the on redemption for applicable unit per (NAV)
value asset net the using determined are Trusts Assets Alternative and Interest Fixed Equity, unlisted in units of values Fair
estimation. to subject are these of valuations The items. unlisted includes portfolios investment Commission Insurance The
                                                                                                      Investments Unlisted        (e)
                       (continued) ESTIMATES AND JUDGEMENTS ACCOUNTING CRITICAL
                   STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
          20 REPORT ANNUAL                                                                       AIJSIRALIA \VESFERN OI COMMISSION I1JRANCI
                                                                                                                                           86)
                                                                                                                                           (AUDITED
&
                                            years 3.9                                       years 3.4       Settlement to Term Average
             year accident for $85,700 Approximately      year accident for $90,500 Approximately                  Size Claim Average
               year accident for 4,050 Approximately        year accident for 4,000 Approximately                    Claims of Number
                      payments claim gross of 0.06%                payments claim gross of 0.06%                 Recoveries Party Third
                           sufficiency of probability                        sufficiency of probability
             75% for liability estimated central of 7%     75% for liability estimated central of 7%                        Margin Risk
                                               models                                models actuarial
           actuarial different the to according varies         different the to according varies this
     this although assLimed p.a. 5% Approximately        although assumed p.a. 5% Approximately                 Inflation Superimposed
                       payments claim gross of 1.2%                  payments claim gross of 0.9%              Recoveries Reinsurance
                       payments claim gross of 3.75%                 payments claim gross of 4.0%         Expenses Management Claims
                                       later and 2012                                later and 2013
          for 6.4% to down 2009 for 7.0% from Varies      for 6.2% to up 2010 for 3.4% from Varies                       Rate Discount
                                       later and 2010                      later and 2012 for 3.8%
          for 4.9% to down 2009 for 5.1% from Varies     2011, for 3.9% 2010, for 3.0% from Varies                        Rate Inflation
                            2008                                           2009                            Fund Insurance Party Third
                            liability: claims outstanding the determining in made assumptions actuarial key provides table following The
                                                                                                               Assumptions Actuarial
                                                           payment. of year financial and year crash of combination each of respect
     in made are predictions Separate models. estimate case historic and individual aggregate, upon based made are flows Cash
     payment. claims future of projections and experience past on based analysed is experience Payments reporting. of delay the in
     patterns and frequency, claim in trends experience, monthly in variations seasonal vehicles, registered of number the in growth
     for allows model the and data monthly past upon based projected are claims of numbers Ultimate models. actuarial of number
     a upon based actuary, independent an by assessed are TPIF the for IBNER) and IBNR (including estimates claims Outstanding
                                                                                              (TPIF) FUND INSURANCE PARTY THIRD
                                                 (continued) METHODS AND ASSUMPTIONS ACTUARIAL                                       3.
                         STATEMENTS FNANCIAL THE OF PART FORMING AND TO NOTES
    fl3
  9     REI'ORT2 ANNUAL                                                                           AUSTRALIA WESTERN OF COMMISSION CE             '   INS
       II
                                                                                                                                                 86
                                                                                                                                          AUDITED
                                                                                                                                           OAG
                                                                                              793-802. 48: Medicine; Industrial
            of Journal British workers', asbestos Wittenoom former in asbestosis and cancer, lung mesotheliorna, of "Prediction
                                           years 7.0                                     years 6.7                Settlement to Term Average
                    payments claim gross of 45.4%                    payments claim gross of 43.6%                     Recoveries Party Third
                           sufficiency of probability                        sufficiency of probability
             75% for claims outstanding net of 25%         75°/h   for claims outstanding net of 25%                             Margin Risk
                     payments claim gross of 8%                         payments claim gross of 8%              Expenses Management Claims
                                   later and 2012                                    later and 2013
      for 6.4% to down 2009 for 7.0% from Varies        for 6.2% to up 2010 for 3.4% from Varies                               Rate Discount
                                   later and 2010          later and 2012 for 3.8% then and 2011
      for 4.9% to down 2009 for 5.1% from Varies        for 3.9% to up 2010 for 3.0% from Varies                                Rate Inflation
                          2008
                                                                                                                                      Fund
                                                                            2009
                                                                                                              General Commission Insurance
                         liabilities: claims outstanding the determining in made assumptions actuarial key provides table following The
                                                                                                                     Assumptions Actuarial
                                                                       liabilities. outstanding total the determine to claim each
of estimates case the on heavily rely models actuarial the and nature in long-tail extremely are claims these of majority The
                                                                                                                             Liability Public
                                                                       liabilities. outstanding total the determine to claim each
of estimates case the on heavily rely models actuarial the and nature in long-tail extremely are claims these of majority The
                                                                                   Claims Disease Non-lung - Compensation Workers'
                                                                                                                          claim.
per cost average likely determine also and time over emerge to likely claims of number total the predict models The data. ICGF
utilising Berry* Geoffrey Professor by developed those on based models actuarial using assessed are claims disease Lung
                                                                                       Claims Disease Lung - Compensation Workers'
                                                                                       system). respiratory the of diseases other
 and cancer lung mesothelioma, of incidents includes (which disease lung asbestos-related and risks law common to relating
 those include liabilities Compensation Workers' claims. Liability Public and Compensation Workers' of categories the in,
 assessed are and into, fall ICGF the within Claims incurred. been has fund the under liability the which by incident the of nature
 the to applicable models using actuary independent an by assessed are ICGF the for run-off in claims for liabilities Outstanding
                                                                                                          -
                                                                                             1986 PRE         LIABILITIES CLAIMS RUN-OFF
                                                          Act). (EISF 1980 FundAct Supplementation Indemnity Employers the
 under made claims and 1986, pre-dating run-off in policies on claims incorporates ICGF the of liability claims outstanding The
                                                                                   (ICGF) FUND GENERAL COMMISSION INSURANCE
                                                 (continued) METHODS AND ASSUMPTIONS ACTUARIAL 3.
                         STATEMENTS FINANCAL THE OF PART FORMING AND TO '1OiES
inn
 9     2 REPORT ANNUAL                                                                         AUSTRALIA WESTERN Of COMMISSION ANCE
                                                                                                                                             86
                                                                                                                                           AUDITED
                                                                                                                                             OAG
                                                                                          793-802. 48: Medicine; Industrial
        of Journal British workers", asbestos Wittenoom former in asbestosis and cancer, lung mesothelioma, of 'Prediction
                liability gross estimated of 12.1%            liability gross estimated of 16.8%                           Margin Risk
                          later and 2009 for 4.5%                later and 2010 for 4.0% - 2.5%                  Inflation Superimposed
                         payments claim of 5%                           payments claim of 10.5%          Expenses Management Claims
    later and 2013 for 6.3% to down then 2010          later and 2012 for 6.2% to up then 2011
  for 6.8% to down 2009 for 7.1% from Varies          for 4.8% to up 2010 for 3.4% from Varies                           Rate Discount
                      later and 2009 for 4.75%                               later and 2010 for 4.0%                      Rate inflation
                       2008
                                                                                                                              Claims
                                                                            2009
                                                                                                       Non-Asbestos-related Act: EISF
                liability gross estimated of 20.4%            liability gross estimated of 20.4%                           Margin Risk
                             later and 2009 for 2%                        later and 2010 for 2%                  Inflation Superimposed
                             payments claim of 5%                     payments claim of 10.5%            Expenses Management Claims
      later and 2013 for 6.3% to down then 2010        later and 2012 for 6.2% to up then 2011
     for 6.8% to down 2009 for 7.1% from Varies       for 4.8% to up 2010 for 3.4% from Varies                           Rate Discount
                         later and 2009 for 4.75%                            later and 2010 for 4.0%                      Rate Inflation
                       2008                                                 2009
                                                                                                                              Claims
                                                                                                           Asbestos-related Act: EISF
                     liabilities: claims outstanding the determining   in   made assumptions actuarial key provide tables following The
                                                                                                               Assumptions Actuarial
                                                                            liabilities. outstanding total the determine to claim
each on placed estimates case the on heavily rely models actuarial the and nature in long-tail are claims these of majority The
                                                                             Claims Non-Asbestos-related - Compensation Workers
                                                                                                                         claim.
per cost average likely determine also and time over emerge to likely claims of number total the predict models The data. ICGF
utilising Berry* Geoffrey Professor by developed those on based models actuarial using assessed are Claims Asbestos-related
                                                                                   Claims Asbestos-related - Compensation Workers
                                                        Claims. Non-Asbestos-related and system) respiratory the of diseases
other and cancer lung mesothelioma, of incidents includes (which Claims Asbestos-related of categories the under assessed
are Act ElSE the under Claims incurred. been has fund the under liability the which by incident the of nature the to applicable
models using actuary independent an by assessed are Act EISF the under run-off in claims for liabilities outstanding The
                                                                                                               LIABILITIES ACT EISF
                                                                            (continued) FUND GENERAL COMMISSION INSURANCE
                                             (continued) METHODS AND ASSUMPTIONS ACTUARIAL                                           3.
                      STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
      REPORT I\NNUAL                                                                           AuSTRALIA WESTERN OF COMMISSION ?.ANCF
                                                                                                                                          86
                                                                                                                                        AUDITED
                                                                                                                                          QAG
                                       years 2.7                                          years 3.2       Settlement to Term Average
                        sufficiency of probability                     sufficiency of probability
  75% for liability estimated central of 6.76% 1 75% for liability estimated central of 16.76%                            Margin Risk
                         liability general for 4%                           liability general for 4%           Inflation Superimposed
                     payments claim net of 9%                        payments claim net of 9%          Expenses Management Claims
             later and 2013 for 6.4% and 2010       later and 2013 for 6.2% and 2012 for 6.0%
  for 6.9% to down 2009 for 7.0% from Varies         2011, for 4.9% 2010, for 3.4% from Varies                         Rate Discount
                                  later and 2010                    later 2012 for 3.8% and 2011
  for 4.9% to down 2009 for 5.1% from Varies          for 3.9% to   LIP2010 for 3.0% from \Jaries                       Rate Inflation
                      2008                                                2009
                                                                                                                     Liability Public
                                                                                                       Fund: Insurance Government
                                       years 7.1                                          years 6.2       Settlement to Term Average
                          payments claim net other                       payments claim net other
   of 7.1% and claims asbestos-related for 0% of 6.7% and claims asbestos-related for 0%                       Recoveries Party Third
                   liability claims outstanding the            liability claims outstanding the of
of variation of coefficient the half as estimated variation of coefficient the half as estimated
    is which liability estimated central of 22.5% is which liability estimated central of 22.5%                          Margin Risk
                                        respectively                    respectively components,
          components, health and education the       health and education the in claims related
   in claims non-asbestos-related for claim per          non-asbestos- for claim per payments
payments for assumed p.a. 2% and pa. 4.5%                  for assumed p.a. 2% and p.a. 4.0%                  Inflation Superimposed
                      payments claim net of 10%                        payments claim net of 10%       Expenses Management Claims
                                     later and 2012                                          later
       for 6.4% and 2011 for 6.6% and 2010 for and 2013 for 6.2% and 2012 for 2011,6.0%
 6.9% to down and 2009 for 7.0% from Varies          for 4.9% to up 2010 for 3.4% from Varies                          Rate Discount
                                     later and 2010          later and 2012 for 3.8% and 2011
  for 4.9% to down 2009 for 5.1% from Varies         for 3.9% to up 2010 for 3.0% from Varies                          Rate Inflation
                      2008
                                                                                                            Compensation Workers
                                                                          2009
                                                                                                       Fund: Insurance Government
                liabilities: claims outstanding the determining in made assumptions actuarial key the provide tables following The
    Liability. Public and Compensation Workers of classes long-tail the are claims outstanding of valuations actuarial obtains
Commission Insurance the which on claims outstanding remaining the 1997, since run-off of state a in been has GIF the As
                                                       patterns. payment and reporting anticipated the in trends determine
to used data yearly past on projected are costs associated their and claims of number ultimate The models. actuarial
of number a on based actuary independent an by assessed are IBNER and IBNR including estimates claims Outstanding
                                                                                            (GIF) FUND INSURANCE GOVERNMENT
                                             (continued) METHODS AND ASSUMPTIONS ACTUARIAL 3.
                    STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
1n
     REPORTQO9 ANNuAL                                                                           AUSTRALIA WESTERN OF COMMISSION NCE i           INS
                                                                                                                                                86
                                                                                                                                          AUDITED
S
                                                                                                                                            OAG
                    claims. outstanding for liability net the to added then is margin risk prudential A claims. outstanding for liability net
    the yield to liability claims outstanding gross the from deducted are These date. balance at estimates Corporation to according
    made is recoveries retrocession outstanding of estimate An date. balance at claims outstanding gross of estimate discounted
    a give to return      investment future of anticipation in rates risk-free using discounted are flows cash payment claim The
                                                                     years. future in due fall they as flows, cash payment claim gross
    project to date balance at liability claims outstanding the to applied are losses incurred to paid claims of ratio the of Models
                                                                                      date. balance at claims outstanding the give
    to losses, incurred ultimate the from deducted are date balance to paid Losses year. underwriting and currency business, of
    line by separately done is This June. 30 ending year underwriting each for losses) incurred (ultimate stand ultimately will they
    as losses, incurred of estimates give to date balance to incurred losses to applied are development loss incurred of models
    The portfolios. industry similar of experience the as well as experience own insurer's Ihe of mix a considering by constructed
    were models These losses. incurred of development of rate the describe to constructed been have models Actuarial
                                                                     denominated. been have treaties, the which in currency the and
    treaties reinsurance the of nature the covered, risks of types the on based groups of number a into divided been has portfolio
    the liability, claims the estimate To actuary. independent an by assessed are Corporation the of claims outstanding The
                                                                (Corporation) CORPORATION INSURANCE GOVERNMENT STATE
                                           years 7.5                                       years 6.9          Settlement to Term Average
                   payments claim gross of 37.1%                   payments claim gross of 36.6%                    Recoveries Party Third
                          sufficiency of probability                      sufficiency of probability
          75% for claims outstanding net of 18.7%         75% for claims outstanding net of 18.7%                               Margin Risk
                     payments claim gross of 35%                      payments claim gross of 35%          Expenses Management Claims
                                    later and 2012                                  later and 2013
      for 6.4% to down 2009 for 7.0% from Varies         for 6.2% upto 2010 for 3.4% from Varies                             Rate Discount
                                    later and 2010          later and 2012 for 3.8% then and 2011
      for 4.9% to down 2009 for 5.1% from Varies         for 3.9% to up 2010 for 3.0% from Varies                             Rate Inflation
                          2008
                                                                                                                          Fund Diseases)
                                                                           2009
                                                                                                               (Industrial Compensation
                       liability: claims outstanding the determining in made assumptions actuarial key the provides table following The
                                                                                                                          models.
    Disease Lung Compensation Workers' ICGF for as basis same the on conducted is valuation This claims. Disease Lung
    ICGF the for claims disease lung the determine to used those to similar are used models the dust, mineral harmful to exposure
    from resulting mesothelioma and cancer lung pneumoconiosis, to related those to limited are fund this for claims the As
                                                                           (CIDF) FUND DISEASES) (INDUSTRIAL COMPENSATION
                                                 (continued) METHODS AND ASSUMPTIONS ACTUARIAL                                            3.
                        STATEMENTS FINANCIAL THE OF                                 P;RT FORMING                 AND TO NOTES
        20 ftEPORT ANNUAL                                                                        AUSTRALIA WESTORN OF COMMISSION SURANCO
                                                                                                                                               AUDTED
771&\                                                                                                                                           u/kG
      4,690              4,690           n/a                                     20) (from years 24 to Model PCE of Projection Lenqthen
     (9,800)            (9,800)          n/a                                      20) (from years 16 to Model PCE of Projection Shorten
      2,310              2,310           -1                                                  Factors Payment Estimates Case Projected
     (2,100)            (2,100)          +1                                                  Factors Payment Estimates Case Projected
      14,140             14,140          -1                                                             Estimates Case of Development
     (16,310)           (16,310)         +1                                                             Estimates Case of Development
      10,150             10,150          -10                                                                                        IBNR
     (10,080)           (10,150)         +10                                                                                        IBNR
      22,330             22,400          -1                                                                      Inflation Superimposed
     (23,520)           (23,590)         +1                                                                      Inflation Superimposed
     (30,170)           (29,890)         -1                                                                                    Discount
      27,860             27,580                                                                                                Discount
      28,490             28,210          -1                                                                                      Inflation
     (30,310)           (30,030)         +1                                                                                      Inflation
     $'OOD           $000                %
     Gross           Recoveries          Variable
                     Other and           in Change                                                                              Variable
                     Reinsurance
                     of Net
         Iricrease/(Decrease
                                                                                                            Fund Insurance Party Third
             Profit/(Loss)
                                                                                                                      profits. upon
    impact the to opposite direction a in moves liabilities claim outstanding upon variables the in change of impact the that Note
                                            profit. after-tax upon impact of instead disclosed is liabilities claims outstanding
    upon impact the purposes disclosure For after-tax. profit upon all at impact no have will variables assumption actuarial
    the in changes hence 9), Note (Refer Indemnity of Right a via WA WorkCover by indemnified are liabilities Act EISF                     -
                                                                                                         profit. after-tax upon
    impact of instead disclosed is liabilities claims outstanding upon impact the purposes disclosure For profit. upon all at
    impact no have will variables assumption actuarial the in changes hence 9), Note (Refer Indemnity of Right a via Finance
     and Treasury of Department the by indemnified is and Regime Equivalent Tax National the from exempt is GIF The
                                                                  for: except recoveries all of net and gross 30%) of rate tax Corporate
    a at     (assumed tax after profit the and equity upon impact would assumptions key in changes how illustrate below tables The
                                                                                                               ANALYSIS SENSITIVITY
                                               years 5.5                                   years 4.8        Settlement to Term Average
                                                                                            volatility
                                                        significant shown historically has which
      volatility significant shown historically have     portfolio the of segment one for added
    which portfolio the of segments two for added    been has margin precautionary additional
        been has margin precautionary additional       An sLifficiency. of probability 75% a give
              An outstanding. claims net of 15.8% to intended is which added been has 15.9%                                 Margin Risk
                    payments claim gross of 7.5%               payments claim gross of 1.2%                     Recoveries Reinsuranco
                   payments claim gross of 161%                 payments claim gross of 87%              Expenses Management Claims
                                 later and 2017 for                   later and 2016 for 5.1%
      5.1% to up 2009 for 2.4% from varies USD
                                                 -     to up 2010 for 0.6% from varies USD
    later and 2029 for 4.2% to down and 2011 for                      later and 2018 for 5.2%
      5.3% to up 2009 for 5.2% from varies GBP
                                                 -     to up 2010 for 1.2% from varies GBP
                        later and 2012 for 6.4% to                    later and 2013 for 6.2%
                                                 -
       down and 2009 for 7.0% from varies AUD to up and 2010 for 3.4% from varies AUD
                                                                                             -                             Rate Discount
                                     later and 2011   andlater upto4.1%for2Ol2 and 2011
      for 4.9% to down 2009 for 5.1% from Varies for 2.1% to down 2010 for 3.1% from Varies                                Rate Inflation
                            2008                                          2009                                              Corporation
                                                                                                               Corporation.
    the of liability claims outstanding the determining in made assumptions actuarial key the provides table following The
                                                     (continued) METHODS AND ASSUMPTIONS ACTUARIAL 3.
                          STATEMENTS                 FANCIAL         THE OF PART FORMNG AND TO NOTES
   i0   .1
REPORT?'         ANNUAL                                                                       AUSTRALIA WESTERN OF COMMSS[ON URANCE
    (112)           (112)            -1                                                                                        Discount
       105           98              +1                                                                                        Discount
       105          98               -1                                                                                         Inflation
    (112)           (112)            +1                                                                                         Inflation
    $'OOO          $'OOO             0/
    Gross         Recoveries         Variable
                  Other and          in Change                                                                                 Variable
                  ce ran su ii Rei
                  of Net
      lncreasel(Decrease)
          Profit/(Loss)                                                               Liability Fund: General Commission Insurance
    (5,208)         (4,767)          +5                                                           Year Future every Reported
                                                    Cases Lung' El 'Non-CSR Future of Number Annual in Rates Decay Increasing
    (2,443)         (2,233)          n/a                                                                            65's under for 1
                                                  by and 65's over for 2 by  Claims Lung' El 'Non-CSR of numbers Base Increasing
    (11,914)        (5,908)          +5                                                               Year Future every Reported
                                                          Cases Mesothelioma Future of Number Annual in Rates Decay Increasing
    (6,839)         (3,388)          n/a                                                                                 65's under
                                                  for 1 by and 65's over for 2 by Claims Mesothelioma of numbers Base Increasing
    (5,824)         (3,353)          +2                                                                    Inflation Superimposed
    (3,150)         (1,967)          -1                                                                                    Discount
     2,779           1,736           +1                                                                                    Discount
     2,730           1,694           -1                                                                                     Inflation
    (3,045)         (1,890)          +1                                                                                     Inflation
    $000            $000             0/
    Gross           Recoveries       Variable
                    Other and        in Change                                                                                 Variable
                    Reinsurance
                    of Net
       rease/(Decrease) Inc
            Profit/(Loss)                                           Compensation Workers Fund: General Commission Insurance
    (602)           (455)            +5                                                                          Year Future every
                                                      Reported Cases 'Other' Future of Number Annual in Rates Decay Increasing
    (609)           (455)            n/a                                                                                      65's
                                                   under for 1 by and 65's over for 2 by Claims 'Other' of numbers Base Increasing
    (644)           (427)            +5                                                                 Year Future every Reported
                                                       Cases Mesothelioma Future of Number Annual in Rates Decay Increasing
    (252)           (168)            n/a                                                                                     under65's
                                                  for   1   by and 65's over for 2 by Claims Mesothelioma of numbers Base Increasing
    (518)           (385)            +2                                                                        Inflation SUperimposed
    (245)           (182)            -1                                                                                      Discount
     217             161             +1                                                                                      Discount
     210             161             -1                                                                                        Inflation
    (238)           (175)            +1                                                                                        Inflation
    $'OOO           $000             %
    Gross           Recoveries       Variable
                    Other and        in Change                                                                                 Variable
                    Reinsurance
                     of Net
         rease) reasel(Dec Inc
                                                                                           Fund Diseases) (Industrial Compensation
             it/(Loss) Prof
                                                                                                     (continued) Analysis Sensitivity
                                                (continued) METHODS AND ASSUMPTIONS ACTUARIAL 3.
                      STATEMENTS FINANCAL THE OF PART                                        FORO AND TO NOTES
   U
  09 REPoRT'. ANNUAL                                              AUSTRALIA WESTERN OF COMMISSTON SURANCE
                                                                                                               86
                                                                                                             AUDITED
                                                                                                               OAG
  (61)         (61)           -1                                          Expenses Management Claims
   61           61            +1                                          Expenses Management Claims
  (210)        (209)          -10                                                        Reported Claims
   210          209           +10                                                        Reported Claims
  (93)         (93)           -1                                                 Inflation Superimposed
   96           96            +1                                                 Inflation Superimposed
   192          191           -1                                                                Discount
  (181)        (180)          +1                                                                Discount
  (184)        (183)          -1                                                                 Inflation
   192          191           +1                                                                 Inflation
  $000          $000          %
  Gross          Recoveries   Variable
                Other and     in Change                                                          Variable
                Reinsurance
                of Net
       Liability Claims
  Outstanding in Movement                                        Claims Non-Asbestos-related Act: EISF
  (336)        (223)          1                                           Expenses Menaqement Claims
   336          223           +1                                          Expenses Management Claims
  (3,686)      (2,438)        -10                                                   Size Claim Average
   3,686        2,438         +10                                                   Size Claim Average
  (3,686)      (2,438)        -10                                                      Claims of Number
   3,686        2,438         +10                                                      Claims of Number
  (3,383)      (2,242)        -1                                                Inflation Superimposed
   3,872        2,568         +1                                                Inflation Superimposed
   3,954        2,621         -1                                                                Discount
  (3,397)      (2,251)                                                                          Discount
  (3,322)      (2,202)        -1                                                                 Inflation
   3,793        2,516         +1                                                                 Inflation
  $000         $000           %
  Gross        Recoveries     Variable
               Other and      in Change                                                         Variable
               Reinsurance
               of Net
      Liability Claims
  Outstanding in Movement                                            Claims Asbestos-related Act: EISF
                                                                       (continued) Analysis Sensitivity
                                         (continued) METHODS AND ASSUMPTIONS ACTUARIAL 3.
                  STATEMENTS FINANCIAL THE O PART FORMING AND TO NOTES
mi;
   215   REPORT ,\NNUAL                                                    AUSTRALIA WESTERN OF COMMISSION RANCE
                                                                                                                          86
                                                                                                                        AUDITED
                                                                                                                          OAG
  (864)           (864)          n/a                       occur not do commutations and plan rLIn-off from Savings
   165             165           n/a                               years continue-S Expenses Management Claims
  (132)           (132)          n/a                              years +5 continue Expenses Management Claims
  (58)            (58)           -1                                                                        Discount
   52              51            +1                                                                        Discount
  9                9             -1                                                                         Inflation
  (10)            (10)           -i-i                                                                       Inflation
  $'OOO           $'OOO          %
  Gross         Recoveries       Variable
                Other and        in Change                                                                  Variable
                Reinsurance
                of Net
    lncrease/(Decrease)
                                                                        Corporation Insurance Government State
        rofitl(Loss) P
  (360)           (350)          -10                                                Estimates Case of Development
   710             680           +10                                                Estimates Case of Development
   50              40            -1                                                                      Discount
  (30)            (40)           +1                                                                      Discount
  (30)            (40)           -1                                                                        Inflation
   50              40            +1                                                                        Inflation
  $'OOO           $000
  Gross           Recoveries    Variable
                  Other and     in Change                                                                   Variable
                  Reinsurance
                  of Net
      Liability Claims
  Outstanding in Movement                                                   Liability Fund: Insurance Government
  (100)           (100)          -10                                                Estimates Case of Development
   100             100           +10                                                Estimates Case of Development
  (6,600)         (6,600)        -20                                            Claims Asbestos-related in Increase
   6,200           6,100         +20                                            Claims Asbestos-related in Increase
   2,700           2,700         -1                                                                        DiscoLint
  (2,400)         (2,400)        +1                                                                        Discount
  (4,300)         (4,300)        -1                                                                         Inflation
   5,200           5200          +1                                                                         Inflation
  $000            $'OUO
  Gross           Recoveries     Variable
                  Other and      in Change                                                                  Variable
                  Reinsurance
                  of Net
       Liability Claims
  Outstanding in Movement                                  Compensation Workers' Fund: Insurance Government
                                                                                  (continued) Analysis Sensitivity
                                            (continued) METHODS AND ASSUMPTIONS ACTUARIAL                         3.
                     STATEMENTS RNANCIAL THE OF PART FORMING AND TO NOTES
i1r,
              REPORT ANNUAL                                                                            AUSTRALIA WESTERN OP CuMMISSION CE
                                                                                                                                                  AUDITED
10 ,
                                                                                                                                                   OAG
           required. when met be can payments claim ensure to liabilities and assets monitors Management liabilities. insurance the
       of term and nature the by driven is invests, Commission Insurance the which in Managers Investment and assets of mix The                        -
                                     Funds. various the for liabilities claims outstanding the predict to models statistical of production
       the in and patterns, claims monitor to used are systems, information the from data using models, Actuarial Independent
         exposed. is Commission Insurance the which to risks the on data reliable up-to-date, provide to systems information of Use                    -
                                      include: Commission Insurance the of operations the in faced risks of mitigation the for processes Key
                                                                                                   goals. its achieving from it prevent
       could that risks of management and assessment identification, systematic the for framework a has Commission Insurance The
                                                                           run-off. in all are Corporation Insurance Government State
       and Fund General Commission Insurance Fund, Insurance Government The Fund. Diseases) (Industrial Compensation the and
       Fund Insurance Party Third the are Commission Insurance the by issued still are insurance of contracts which for funds only The
                                                                                                     funds. statutory its from arising claims
       the manage efficiently to and insures it those to risk of cost the minimise to seeks Commission Insurance the this, doing In advice.
       and services management risk provides it addition, In areas. of number a in run-off claims of management the with together them
       from resulting claims the managing and policies insurance of issuing the involve primarily activities Commission's Insurance The
              Risks those Mitigating for Policies and Contracts Insurance General from arising Risks Managing in Objectives                       (i)
                                                                                       CONTRACTS REINSURANCE AND INSURANCE
                                                                      consideration. for Board the to submitted and periodically undertaken
       is capital in movements of review A capital. core its as reserve revaluation asset and earnings retained its considers Commission
        Insurance The practices. mitigation risk appropriate instigate appropriate where and consider will Board the Requirements),
        Capital Minimum APRA as (such Standards AASB by covered not are which guidelines APRA to relate Commission Insurance
        the to relevant matters Where guidelines. APRA in incorporated those as such requirements practice best mirror standards
        AASB the of Many (c). 1 Note Refer Instructions. Treasurer's by amended as Standards AASB to subject is entity the by Reporting
                                                                                    insurance. State to apply not does Act Insurance the
       that deems however s5(1), Act Insurance The Act). (Insurance 1973 Act Insurance the of meaning the within insurers general all
       captures This Act. that under regulated bodies out sets s3(2) Act) (APRA 1998 RegulatotyAuthorityAct Prudential Australian The
       insurers. general other most to apply would which frameworks regulatory external to subject not is Commission Insurance The
                                                         MANAGEMENT CAPITAL AND FRAMEWORKS REGULATORY EXTERNAL
                                                      activities. risk higher to relation in Commissioners of Board the to assurance gives and
       risk of evaluation and monitoring identification, the in assists provider, external independent an by provided is which Audit, Internal
                                                                        risk. of categories or risks specific of management or process,
       management risk the in assist and advise to required, where consultants, external of retention the for provides Policy Risk The
               Commissioners. of Board the to basis regular a on reported is information This performance. and practice implementation,
       monitors and Guidelines and Procedures Objectives, Policy, Risk communicates and determines Committee Executive
       Commission's Insurance The responsibility. Executive and Board a is Commission Insurance the within management risk Overall
                                                                                                                          cycles. Planning Business
       Operational and Strategic the into integrated is and responsibilities line and operational of part           a   forms risk of Management
                                                       risk. credit and risk exchange foreign risk, rate interest risk, liquidity risk, market risk,
       insurance include which risks financial key of number a and risks contract insurance of number a to subject is entity economic The
                                                                          Commission. Insurance the of those with integrated are Corporation
       the   for procedures management Risk minimal.       is run-off) in is (which Corporation the of entity economic the to materiality The
                                                                              public. the of members or operations objectives, functions,
       finances, assets, people, customers, its entity, economic the upon impact adversely to threaten that risks all of management
       the in Practice' 'Best achieve to strive to Corporation, the subsidiary, its and Commission Insurance the of policy the is It
                                                                                                           FRAMEWORK GOVERNANCE
                                                             PROCEDURES AND POLICIES MANAGEMENT RISK                                             4.
                              STATEMENTS FINANCAL THE OF PART FORMING AND TO NOTES
 bR
    200 REPORT ANNUAL                                                                           AUSTRALIA WESTERN OF COMMISSION NCE           INSU
                                                                                                                                               86
                                                                                                                                         AUDITED
                                                                                                                                           OAG
                                   basis. form standard a under issued were covers these of majority the as Fund this under issLied
insurance of contracts latent from statements financial the on impact materially would that conditions or terms special no are There
                                                         1997. June 30 on insurance of contracts issuing ceased which GIF the in
arising deficits for Finance and Treasury of Department the by indemnified is Commission Insurance The run-off. in is Fund This
                                                                                            (GIF) Fund Insurance Government
                                                 Commission. Insurance the of statements financial the on impact material a have
would that conditions or terms special no contain and format standard a of are CIDF the by issued insurance of policies Ongoing
                                                                                                    2009. July 1 from years three
further a for arrangement this retained has WA WorkCover 2009. June 30 ending thereof part or period three-year a for policy
per GST) (plus $100 of charge flat a at set were 2006 July 1 from premiums status, financial sound CIDF's the to Due s151(a)(iii).
 1981 Act Management Injury and Compensation Workers' the with accordance in WA WorkCover by set are premiums CIDF
                                                                                                     1966. and 1943 between Wittenoom
at activities mining the from fibre asbestos to exposure from results Fund this for liability outstanding potential the of majority The
                            future. foreseeable the for continue will situation this that expected is it and years many for surplus in be
to CIDF the caLised has This Diseases. Industrial of rate incident the in decline substantial a been has there industry, mining the
within practices safety and health occupational preventative of adoption the and techniques mining modern of advent the to Due
                                             AListralia. Western in industry mining the in employment of course the in dust mineral
harmfLil to exposure from arising mesothelioma, and cancer lung pneurnoconiosis, of diseases respiratory for claims compensation
workers' against employers covering insurance of contracts issue to authorised insurer only tile is Commission Insurance The
                                                                                  (CIDF) FLind Diseases) (Industrial Compensation
                 program. the on inclusion for considered are rating security higher or 'A-' an with reinsurers only and effectiveness
their determine to assessed regularly are program the on Reinsurers contracts. 12-month on risk the of share a carrying
each reinsurers, global of nLlmber a with broker a through placed are arrangements Reinsurance event. one any for limit defined
a of excess in losses cover to basis, event" 'per a on arrangements, reinsurance treaty loss of excess place in has TPIF The
                                  Commission. Insurance the for responsible Minister as Treasurer the to recommendation a makes
then Board the process, this Following year. financial following tile of commencement the at exist to expected earnings retained
any and report actuarial independent an account into takes also assessment The 1943. Act Insurance) Party (Third Vehicle Motor
the under incurred be or arise to anticipated expenses other and costs claims, meet to sufficient be will Act, the of purposes the for
and under received be to expected income other with together premiums, of scales existing of basis the on estimated as Income,
premium the which to extent the of assessment an make to is Commission Insurance the year, financial each once least at
that, requires which 1943, Act Insurance) Party (Third Vehicle Motor the of 31 section in out laid is risk the pricing for process The
                                                                                                                basis. fee-for-service a
on Commission InsLirance the of behalf on premiums the collect and policies the issue agents its and Infrastructure) and Planning
for Department (formerly Transport of Department the and licence vehicle motor every with combined is policy The Australia.
of Commonwealth the of part any in vehicle motor insured the of, driving the by or by, caused directly person any to injury
bodily or death the to respect in driver or owner that by incurred negligence for liability all for vehicle motor registered Australian
Western a of driver or owner the to indemnity unlimited provides Commission Insurance the by issued insurance of policy The
                                                                                                   (TPIF) Fund Insurance Party Third
                                                                Risks Reinsurance and Insurance of Conditions and Terms                (ii)
                                                  funds. cash Australian in held are liabilities emerging offset to used assets reason
this For predict. to impossible virtually and variable highly are patterns payment emerging the run-off, in is Corporation the As
                                     risks. various the for liabilities outstanding the predict to models statistical of production
the in and patterns, claims monitor to used are systems, information the from data using models, Actuarial Independent
  exposed. is Commission Insurance the which to risks the on data reliable up-to-date, provide to systems information of Use
                                       include: Corporation the of management the     in   faced risks of mitigation the for processes Key
                                                                                        1992. and 1988 between Corporation
the by written business reinsurance overseas and Australian of lines small run-off to existence in remains Corporation The
                                                                   (Corporation) Corporation Insurance Government State
                                   (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                                 4.
                        STAThMENTS FINANCIAL THE OF PART FORVHNG AND TO NOTES
    10
 9   -I REPORT ANNUAL                                                                       AUSTRALIA WESTERN OF COMMISSION      E
                                                                                                                                     AUDITED
                                                                                                                                       OAG
                                               Fund. this Linder claims of run-off the with associated costs all for WA WorkCover
from reimbursement of right a has Commission Insurance the that Act EISF the under requirement a by mitigated is risk This risk.
concentration considerable is there hence and business of class Compensation Workers' the with associated risks to restricted
insurance of contracts from result Act EISF the under Commission Insurance the against made claims all date, balance At
                                                                                  Fund Supplementation Indemnity Employers'
                                                                                           activities. these from incurred losses
of proportion set a for reimbursement a with Commission Insurance the providing Ltd Pty Midalco and Limited CSR Commission,
Insurance the between into entered been has agreement of deed a 1966, and 1943 between Wittenoom at activities mining
asbestos from resulting liability law common the from stems which of majority the ICGF, the in contained risk the mitigate To
                                                    claims. compensation workers' long-tail and liability law common with associated
risks from arise date balance at liabilities outstanding of majority the as increased has risk concentration the time, considerable
a for run-off in been has fund this As Australia. Western of area geographic large the across portfolio diversified a
                                                                                                                             having
by mitigated was risk concentration significant to exposure issued, being were insurance of contracts ICGF that years the During
                                                                                             Fund General Commission Insurance
                                                                               GIF. the of run-off the from resulting deficits Fund
for Australia Western of Finance and Treasury of Department the from indemnification an secured has Commission Insurance The
                                                    claims. compensation workers' long-tail and liability law common with associated
risks from arise date balance at liabilities outstanding of majority the as increased has risk concentration the time, considerable
a for run-off in been has fund this As Australia. Western of area geographic large the across portfolio diversified a
                                                                                                                              having
by mitigated was risk concentration significant to exposure issued, being were insurance of contracts GIF that years the During
                                                                                                       Fund Insurance Government
                                           years. recent in rate incidence tower far a in resulting operations, mining modern in dust
mineral harmful to exposure decreased the and Fund the by held surplus large the by mitigated is risk This Australia. Western of
confines the within sotely operates and business of class one to restricted is it as risk concentration to exposure an has CIDF The
                                                                                        Fund Diseases) (Industrial Compensation
                                                              Australia. Western of area metropolitan Perth the within concentrated is
however, risk the of Most Australia. of Commonwealth the of part any in vehicle motor registered Australian Western a of, driving
the by or by, caused directly person any to injury bodily or death the to respect in indemnity unlimited an for provides policy TPIF A
                                                                                                        Fund Insurance Party Third
                                                                                                          Risk Concentration         (iii)
                                                    terms. contract original the with accordance in are submitted being accounts alt
that ensuring is fund the of run-off the with managed being issue key The complex. extremely cases some in and variable highly
were Corporation the of operation the through placed was business reinsurance inwards which Linder conditions and terms
                                                                                                                               The
                                                                                                                         Corporation
                                                                                                                            17(b).
Note Refer claims. ElSE all of respect in WA WorkCover from indemnity of right a has Commission Insurance The Commission.
Insurance the of statements financial the on impact materially woutd that conditions or terms any contain not would they Australia,
Western within policies Compensation Workers' all governing guidelines legislative the under fall responsibility, assumed now has
Commission Insurance the which for HIH), by issued those (including Act ElSE the under cover insurance of contracts the all As
                                   liabilities. these of run-off with associated costs all for reimbursement of right a has Commission
Insurance the Act, EISF the of 25(2) Section Under Commission. Insurance the of behalf on company) Group Australia Insurance
(an Claims Compensation Workers' CGU by externally managed is HIH by issued insurance of policies for claims of run-off The
                                                                               2001. March 15 to prior employment their of course
the in injured workers for claims fund to used was Act EISF the 2001, March in (HIH) Group HIH the of collapse the to response In
                                                             Act) (EISF 1980 Act Fund Supplementation Indemnity Employers'
                                                                                                 basis. form standard a under issued
were covers these of majority the as Fund this under issued insurance of contracts latent from arising statements
                                                                                                                        financial the
impact materially would that conditions or terms special no are There 1986. December 31 since issued been have policies no and
run-off in is Fund This (SGIO). Office Insurance Government State former the of liabilities to relate Fund the from paid claims The
                                                                                  (ICGF) Fund Genera! Commission Insurance
                                  (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                                4.
                        STATEMENTS Fh\!ANCAL THE OF PART FORMING AND TO NOTES
111
      KEPORTO9 ANNUAL                                                                               AUSrEALtA WESTERN OF COMMISSION        CE     INSUR.'
                                                                                                                                                     86
          (                                                                                                                                  AUDITED
&
                                                                                                                                               OAG
                                                                          basis. monthly a least at on Division Investments Manager the
    by monitored is portfolio the of composition the and allocations asset target from Divergence objectives. investment Commission's
    Insurance the achieve to as so determined is instruments financial of types various the between assets of allocation The
    appointments. manager investment and configuration manager investment mix, allocation asset strategy, investment determines
    Division, Investments the from input and Consultant Asset Independent its with consultation in Commissioners, of Board The
                                                                                                                             markets.
    investment Australian and International within evolving continually are that changes incorporate to updated and reviewed regularly
    are PGIs The configuration. manager and allocation asset powers, investment Commission's Insurance the out sets PGIs the
    to 'Preamble' The instruments. derivative over-the-counter and Interest Fixed Cash, for requirements rating credit minimum with
    along portfolio investment its in hold may Commission InsLirance the which investments authorised the out set clearly PGIs The
                                                                                                                                       Is. PG the
    with accordance in managed are investments These investments. Cash and Property Interest, Fixed Equity, Assets, Alternative
    non-quoted and quoted include inter-alia which instruments financial of consists portfolio investment Commission's Insurance The
                                                                                                     MANAGEMENT RISK FINANCIAL                (ci)
                                                                                         below. Refer Australia. Western of TreasLirer
    the by issued (PGIs) Investments for GLndelines Prudential with accordance in undertaken are decisions investment Commission's
    Insurance the contracts, insurance backing liabilities and assets affect can which risks these to exposure minimise To
                                                                 risk. credit and risk exchange foreign risk, rate interest risk, liquidity risk,
    price risk, insurance include which risks financial key ot number a and risks contract insurance to subject is entity economic The
                                                                                                                         Risk Financial
                     ends. year successive at years underwriting for estimates claims outstanding details which 17(g) Note in provided
    been has Table Development Claims a period, contract the of close the following change material to subject is liability of estimate
    the where insurance of classes with deal Commission Insurance the of management under contracts insurance of majority the As
                                                                                                                                  Corporation
                                                                 returns). investment inflation, (e.g. conditions economic in Changes            -
                                                                                                             and legislation; in Changes         -
                                                                                       attitudes; judicial and social in changes Future          -
                                                                                                       frequency; claim in trends Future        -
                                 to: related uncertainty, significant to subject is liability claims oUtstanding for provision the Nevertheless
                                                                                                              liability. claims outstanding
    for provision the at arrive to this to added then is margin prudential The rates. risk-free using value present to discounted
    first is estimate claims central The rates). risk-free above returns asset nor risk, asset for allowance no with (i.e. risk liability on
    solely based adequacy of level 75% a achieve to sufficient is adopted margin prudential The insurers. private covering regulations
    Authority Regulatory Prudential Australian with accordance in margin prudential a adopted has Commission Insurance the
    law, by required not Although yearly. twice least at provisions claims outstanding the review actuaries independent and Officer,
    Claims designated a by placed estimates have claims active all provisions, claims outstanding the of adequacy the ensure To
           ends. year successive at years underwriting for estimates claims outstanding detail which 17(g) Note in provided been have
    Tables Development Claims period, contract the of close the following change material to subject is liability of estimate the where
    insurance of classes with deal Commission Insurance the of management under contracts insurance of majority the that Given
                                                                                      Liability Claims Outstanding of Development
                                                                                 base. risk concentrated more far a from originating claims
    of tail residual a leaving ago time some settled being claims tail shorter the to due consumed been has diversification the of benefit
    the of majority the expected be could As regions. geographical end lines product of number a across portfolio its of diversification
    the by risk concentration mitigate to sought operation of years its during Corporation the by issued covers reinsurance inwards The
                                                                                                                                  Corporation
                                       (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                                   4.
                           STTEIJIENTS FINANCIAL THE OF PART FORMING AND TO NOTES
    t I   I
                                                                                                                                             ,
       REPORT    i\NUAi.                                                                        AUSTRALtA wnsrERN OF ISSION COMM NCE             INSt
                                                                                                                                                  86
                                                                                                                                        AUDITED
                                                                                                                                                 OAG
                                                                    custodian. external the and Division Investments Manager
the by monitored actively are derivatives of use related the and processes management currency the of effectiveness The
                                                                                                                  basis. monthly a
on hedged be to values portfolio updated with manager overlay currency the providing for responsible is Division Investments The
                                            utilised. are dollars Australian in domiciled investments trust unit possible, Where
                                                                           hedged. fully is exposure interest fixed overseas The
                                                                                                        Fund. Global Holowesko
the   in   investment the through gained exposure dollar US the of 100% hedge passively to used is overlay currency A
                                        exposures. Equities Global core of 50% hedge passively to used is overlay currency A
                                                                                               follows: as managed is portfolio investment
the of risk currency This exposures. currency foreign net of respect        in   risk currency to exposed is Commission Insurance The
                                                                                                                          Risk Currency
                                                 investments. on return the optirnising while parameters acceptable within exposures
risk market control and manage to is management risk market of objective The prices). market in fluctuations to (due risk price
and rates); interest market in fluctuations to (due risk rate interest rates); exchange foreign in fluctuations to (due risk currency
risk: of types three comprises risk Market instruments. financial of holdings its of value the or income entity's economic the affect
will which prices equity and rates exchange foreign rates, interest as such prices, market in changes that risk the is risk Market
                                                                                                                       Risk Market      (i)
                                                              factors. quantitative and qualitative both includes monitoring This
performance. own its including managers all of performance the monitors continually Division Investments The classes. asset
respective their for (benchmarks) indices market on based targets performance meet to required are managers investment All
                                                              portfolios. investment managed internally to relating procedures and
policies the monitor auditors internal Commission's Insurance The procedures. and policies internal its with adherence to relating
sign-off audit an with Division Investments the provide to basis annual an on requested is manager investment external Each
                                     portfolios. investment managed internally the in utilised derivatives no are There received.
as Division Investments Manager the by reviewed are RMS5 These derivatives. managing for procedures and processes their
out set which (RMS) Statement Management Risk a with Division Investments the provide also managers investment External
                                                                                                          basis. monthly a on Board
the to reported are incidents compliance All breach. compliance a rectify to taken steps necessary the and manager investment
external the with confirmed immediately are findings/breaches Any PGIs. the in out set as requirements rating credit and sectors
or issuers investments, individual of size the to relating allocations on limits investments, authorised with compliance to relating
measures risk includes This mandate. investment individual each to respect with portfolios discrete of compliance on Division
Investments Manager the to reports Custodian The Custodian. external the by basis weekly a on undertaken is reporting Risk
                                  Deed. Trust each of parameters risk the to regard having selected are vehicles pooled of Managers
activities. investment their restricting parameters risk out set which mandates investment have portfolios discrete with Managers
portfolios. Cash and Bonds Linked Inflation Property, Direct the managing for responsible is Division Investments The managers.
investment internal and external of combination a by managed professionally is portfolio investment Commission's Insurance The
                                                                                               activities. investment its to relating
risks Commission's Insurance the of oversight and establishment the for responsibility overall has Commissioners of Board The
                                                                                                                      Risk Liquidity
                                                                                                                        Risk Credit
                                                                                                                       Risk Market
                   instruments: financial of use its from risks following the to it expose activities investing Commission's Insurance The
                                     (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                               4.
                           STATEMENTS FINANCIAL THE OF PART FORMING AND TO TES S N
1?    1
  9   2   REPORT ANl'UAL                                                                    AUSTRALIA WFSTERN OF COMMISSION (E            INS1JR
                                                                                                                                          86
                                                                                                                                  AUDITED
                                                                                                                                    OAG
                     40. and 10 Notes Refer Commission. Insurance the of accounts the in liability a by offset is share RiskCover's
 entity. economic the of pool investment the of share RiskCover's of inclusive are figures These Accounts. Consolidated
 the in represented only is which Corporation, the of Assets Equivalent Cash and Cash to relating million) $2836 (2008: million
 $3052 of exception the with Commission Insurance the and Consolidated both for same the     is Exposure Risk Rate Interest The
  1,447              1,437           -1
                                                      206,355           184,171                              Trusts Unit Interest Fixed
 (1,447)            (1,437)          +1
  9,931              9,048           -1
                                                      493,356           363,232                      Assets Financial Bearing Interest
 (9,931)            (9,048)          +1
 $'OOO              $'OOO             % Variable     $000              $000
 2008           2009                in Change     2008              2009
      Increase/(Oecrease)
                                                              Exposure
    Equity and Profit/(Loss)
                                                  assets: financial bearing interest of value base the to relation in rates interest in
 movements of equity and 30%) of rate tax Corporate a at (assumed tax after profit on impact the demonstrates below analysis The
                                                                                                                        Exposure.
 Risk Rate Interest 25(d) Note in shown is assets financial bearing interest for rate interest average weighted effective the and
 risk rate interest to exposure its hence and assets financial bearing interest Commission's Insurance the of profile maturity The
          rate. bill bank 90-day the of excess in margin fixed a on based months three every reset interest an with notes rate floating
 or year one than less of maturity a with securities term short in invested are equivalents cash and Cash rates. interest market of
 level prevailing the in fluctuations to due risk rate interest value fair to exposure an has Commission Insurance the Consequently,
 year. one than longer maturity with securities interest fixed quality high in invested is portfolio Commission's Insurance
 the of 9.1%) (2008: 8.5% Approximately securities. interest fixed dated long and short in invests Commission Insurance The
                                                                                                                   Risk Rate Interest
                                                                                       40. and 10 Notes Refer Commission. Insurance
 the of accounts the in liability a by offset is share RislcCover's entity. economic the of pooi investment the of share RiskCover's
 of inclusive are figures These Commission. Insurance the and Consolidated both for same the is Exposure Risk Currency The
 (2,367)            (1,642)          -10
                                                      33,806            23,458                                          Pounds British
  2,367              1,642           +10
 (4,438)            (3,349)          -w               63,401            47,844                                                    Euro
  4,438              3,349           +10
 (3,454)            (3,568)          -10
                                                      49,340            50,966                                          Yen Japanese
  3,454              3,568           +10
 (15,498)           (15,019)         -10
                                     +10
                                                      221402            214,555                                              Dollar US
  15,498             15,019
 $'OOO              $000              % Variable     $'OOO             $'OOO
 2008               2009              in Change      2008              2009
       lncrease/(Decrease)
                                                                 Exposure
      Equity and Profit/(Loss)
                                                                                                                          applied:
 been have overlays hedge currency the before exposure currency total the shows analysis The date. balance the at portfolio
 investment the within exposures currency major our on dollar Australian the against rates exchange currency foreign in movement
 a of equity and 30%) of rate tax Corporate a at (assumed tax after profit on impact the        demonstrates below analysis The
                                   (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                              4.
                           STATEMENTS FINANCAL ThE OF PART                                 FORMG            AND TO NOTES
113
    2   REPORI ANNIJAL                                                                        AUSTRALIA WESTERN OF iIISSQN
                                                                                                                                      6RA,:
                                                                                                                                      AUDITED
                                                                                                                                       OAG
                     40. and 10 Notes Refer Commission. Insurance the of accounts the in liability a by offset is share RiskCovers
entity. economic the of pooi investment the of share RiskCovers of inclusive are shown figures The Commission. Insurance
the and Consolidated both for same the is exposure risk price the hence and exposure risk price no has Corporation The
(27,180)          (26,194)            -10
                                                       388,276           374,195                                   Properties Investment
 27,180            26,194             +10
(39,675)          (33,345)            0
                                                       566,793           476,349                                          Trusts Unlisted
 39.675            33,345             +10
(1952)            (1,094)             -10
                                                       27,886            15,627                                              Trust Listed
 1,952             1,094              +10
(1,267)           (944)               -10
                                                       18,102             13,491                                                   Nikkei
 1,267             944                +10
(1,425)           (1,649)             -10
                                                       20,363            23,546                                                     ETSE
 1,425             1,649              +10
(1,719)           (1,649)             -10
                                                       24,555            23,552                                                 NASDAQ
 1,719             1,649              +10
(5,419)           (4,710)             -10
                                                       77,420            67,285                                               Jones Dow
 5,419             4,710              +10
(44,605)          (43,771)            -10
                                                       637,216           625,296                                                     ASX
 44,605            43,771             +10
$'OOO             $'OOO                % Variable     $'OOO             $000
2008              2009                 in Change      2008              2009
      lncrease/(Decrease)
                                                                  Exposure
    Equity and Profit/(Lciss)
                            properties: investment and trusts unlisted trusts, listed markets, significant in listed equities of value the
in movements of equity and 30%) of rate tax Corporate a at (assumed tax after profit on impact the demonstrates below analysis
The properties. investment were 13.4%) (2008: 14.7% and trusts listed were 0.9%) (2008: 0.6% trusts, unlisted were 20.5%)
(2008: 18.7% equities, listed were assets investment Commission's Insurance the of 30.4%) (2008: 32.5% 2009, June 30 At
                                                       managers. investment and geographies classes, asset issuers, instruments,
across achieved is Diversification portfolio. investment diversified a holding Commission Insurance the by mitigated is risk Price
                                                                                 Income. Investment Net affect directly will conditions
market in change a value, fair at reported are investments of majority the Since market. the in instruments all affecting broadly
factors other or issuer, its investment, individual the to specific factors by caused whether risk), currency or rate interest from
arising those than (other prices market in changes of result a as fluctuate will instrument the of value the that risk the is risk Price
                                                                                                                              Risk Price
                                   (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                                 4.
                         STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
 9   2. REPORT   AUAL                                                                        AUSTRALIA VBSTERN OF
                                                                                                                     6..\N'OMMSSION
                                                                                                                                     AUDITED
                                                                                                                                 uA\
                                         monitored. actively is counterparties reinsurance past and current of quality credit The            -
                        retention, risk of level the determining in account into taken factors are protection reinsurance of cost
the and loss withstand to Funds the of capacity financial The losses. future for potential the and losses historical on based
appropriate, is coverage that ensure and effectiveness their monitor to annually reviewed are arrangements Reinsurance                       -
                              annually. RiskCover for limits retention the on agrees Finance and Treasury of Department The                  -
                                                                          counterparties. reinsurance for ratings credit financial
minimum include which authorisations, and delegations Board with accordance in placed and approved is Reinsurance                            -
                                                                                                                             follows:
as is arrangements reinsurance of monitoring and approval selection, the of respect in used strategy The loss. catastrophic
of event the in volatility reduce and capital protect to reinsures Commission Insurance The risk. contract insurance offset
to into enters it arrangements recovery other and reinsurance the to regard in risk credit to exposure has also entity economic The
                                                                                    Risk Credit related Reinsurance and Insurance
 494,249           364,023          494,249           364,023                                                     Exposure Risk Credit
 150,473           78,776           150,473           78,776                                              rating (short-term) A2 to Al
 4,753             3,484            4,753             3,484                                                       ratings BBB to BBB+
 47,148            34,146           47,148            34,146                                                            ratings A- to
 92,088            99,162           92,088            99,162                                                        ratings AA- to AA+
 199,787           148,455          199,787           148,455                                                                 rating AAA
                                                                                         analysis. this from excluded also are Agencies
Government to related 9) Note (Refer Indemnities of Right Note. this in later separately shown are which Recoveries Other and
Re-insurance excludes table this addition, In risk. credit than rather risk market to subject are which assets alternative and trusts
unit equities, unlisted and listed excludes table The grade. speculative as classified are BBB to AAA of range the outside falling
assets Rated rating. possible highest the is AAA ratings. Poor's and Standard per as trades transaction unsettled of respect in
debtors and call at deposits securities, discount short-term bonds, rated officially of values market the to relates table following The
 2,153,025         1,873,896         2,155,334        1,876,627                                  Exposure Risk Credit Maximum Total
 2,153,025         1,873,896         2,155,334        1,876,627
                                                                        Losses: for Provision any of Net Sheet, Balance Consolidated
                                                                        the in Recorded Assets Financial the of Amount Carrying The
$'OOO              $'OOO            $000          $000                                                 Assets Financial Recognised
2008           2009                 2008          2009
     COMMISSION INSURANCE                   CONSOLIDATED
                 Australia. in assets financial recognised its of 72%) (2008: 65% having of exception the with characteristics, similar
with counterparties of group any or counterparty single any to exposure risk credit significant a have not does entity economic The
                                                                                                                        listing.
brokers authorised the with accordance in are managers investment by transactions in used brokers the that confirm checks
Compliance brokers. numerous with transacting by risk concentration minimise managers investment The transact. can manager
investment the whom with brokers of list authorised an having by mitigated is brokers with transactions on arising risk Credit
                                                                       Board. the to Report Investment monthly the in incorporated
are breaches rating credit All immediately. rectified be must policy rating credit the to Breaches Division. Investments Manager
the to reported and Custodian the by basis weekly a on monitored are portfolios interest fixed all in securities of ratings credit The
             Poor's. and Standard by determined as better or BB-' least at of rating credit a with Governments Sovereign by issued
securities be must and exposure interest fixed overseas total the of 10% to restricted are securities interest fixed market Emerging
                           maturity. to months 12 than more securities for 'A-' and maturity months 12 to up securities for Poor's and
Standard by determined as better or 'A2-' least at of ratings credit of counterparties rated by issued instruments rated in investing
by mitigated is securities these in risk Credit derivatives. over-the-counter and interest fixed cash, for requirements rating credit
minimum the out sets and PGIs the in contained is policy credit Commissions Insurance The entity. economic the to loss financial
in resulting obligations contractual its on default will instrument financial a to counterparty a that risk the to refers risk Credit
                                                                                                                     Risk Credit      (ii)
                                   (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                                4.
                        STATEMENTS FNANCIAL THE OF PART FORMING AND TO NOTES
      NOTES TO AND FORMING PART OF THE FNANCAL STATEMENTS

     4.      RSK MANAGEMENT POLICIES AND PROCEDURES (continued)

     The following tables provide information about the quality of the consolidated entity's credit risk exposure in respect of reinsurance and other recoveries
                                                                                                                                                                 on claims
     already paid and on claims which remained outstanding at balance date, but not yet invoiced or claimed from the relevant party. The analysis classifies the assets
     according to Standard and Poor's counterparty credit ratings. AAA is the highest possible rating. Ratings that fall outside of the range AAA to BBB and those which
     cannot be reliably rated such as estimates of unknown third party recoveries are classified as speculative grade. Input tax credits recoverable from the Australian
     Taxation Office have all been classified as AAA rating.


                                                                                                                2009 (S000)
                                                                                                                                            Speculative
                                                                               AAA       AA+ to AA-          A+ to A-            BBB+            Grade              Total
     Reinsurance and Other Recoveries
     Third Party Insurance Fund (TPIF)                                      81,228             1,504          11,528               -                854           95,114

     Compensation (Industrial Diseases) Fund (CIDF)                              30                               -              1,174              -              1,204

     Government Insurance Fund (GIF)
      - Workers' Compensation                                                  323               -                -                -                241              564
      - Public Liability                                                        29               -                -                    59           (38)              50
     GIF Total Reinsurance and Other Recoveries                                352               -                -                    59           203              614

     Insurance Commission General Fund (ICGF)
       - Workers' Compensation                                                 543               -                             19,876             1,045           21,464
       - Public Liability                                                       41                                -                -                -                 41
       - EISF Act: Asbestos-Related Claims                                     184                                -                -                -                184
       - EISF Act: Non-Asbestos-Related Claims                                  53               -                                 -                -                 53
     ICGF Total Reinsurance and Other Recoveries                               821               -                -            19,876             1,045           21,742
     Total Insurance Commission Reinsurance and Other
                                                                            82,31              1,504          11,528           21,109             2,102         118,674
     Recovenes

     Corporation Inwards Reinsurance                                                                                               -                    7              7

     Total Consolidated Reinsurance and Other Recoveries                    82,431            1,504           11,528           21,109            2,109          118,681




MCI 04 M/'C rflftaRAQCIflpa CC lI/CCTIADCI Al Cm,, Al IA                                                                                                                     ANNI Al. REPORT 2009
r-
  >
  C
Ooo
C))
 O// m
              NOTES TO AND FORMNG PART OF THE RNANCAL STATEMENTS

              4.    RISK MANAGEMENT POLICIES AND PROCEDURES (continued)

                                                                                            2008 ($'OOO)
                                                                                                                       Speculative
                                                                      AAA    AA+ to AA-   A+ to A-           BBB            Grade         Total
              Reinsurance and Other Recoveries
              Third Party Insurance Fund (TRIF)                     80,446       2,701     11,159             -              834        95,140

              Compensation (Industrial Diseases) Fund (CIDF)            34                    -             1,376             -          1,410

              Government Insurance Fund (GIF)
               -Workers' Compensation                                  322         -          -               -              295           617
               - Public Liability                                       18                    -                   25               2        45
              GIF Total Reinsurarice and Other Recoveries              340         -                              25         297           662

              Insurance Commission General Fund (ICGF)
                - Workers' Compensation                                557                    -            21,987            917        23,461
                - Public Liability                                      59         -          -                -              -
                - ElSE Act: Asbestos-Related Claims                     99         -          -               -                             99
                - EISF Act: Non-Asbestos-Related Claims                 49         -                          -               -             49
              ICGF Total Reinsurance and Other Recoveries             764                     -            21,987            917        23,668
              Total Insurance Commission Reinsurance and Other
                                                                    81,584       2,701    11,159           23,388           2,048      120,880
              Recoveries

              Corporation Inwards Reinsurance                                                                                     52        52

              Total Consolidated Reinsurance and Other Recoveries   81,584       2,701    11,159           23,388           2,100      120,932




         II   RAN(P (OIMJSPC)N   OP WPSTFPN AUSTRAI LA                                                                                            ANNUAL REPORT 2009
    NOTES TO AND FSRMliNG PART OF THE FINANCAL STATEMENTS

4.    RISK MANAGEMENT POLICIES AND PROCEDURES (continued)
The following table provides further information regarding the ageing of amounts invoiced and receivable for premium debtors, reinsurance and other recoveries on
paid claims at balance date:

                                                                                                      2009 ($000)
                                                                      I                 Past Due but Not Impaired                                    I


                                                      Neither Past
                                                          Due nor             0 to 3           3 to 6              6 to 12     Greater than
                                                         Impaired            Months           Months               Months            1 Year              Impaired   *
                                                                                                                                                                         Total
Third Party Insurance Fund
Compensation (Industrial Diseases) Fund                           1                1
                                                                                                                       -                                                    2
Government Insurance Fund                                                                                              -                        97            150        247
Insurance Commission General Fund                            480                740               25                       5                    20             20       1,290
Total Insurance Commission                                   481                741               25                       5                117               170       1,539
Corporation Inwards Reinsurance                                                                    3                                            14              6         23
Total Consolidated                                           481                741               28                       5                131               176       1,562

      All Government Insurance Fund impaired receivables are greater than 1 year past due.
      All Insurance Commission General Fund impaired receivables are less than 1 year overdue.
*     Corporation impaired receivables are both less than     1   year overdue ($1,849) and greater than   1   year past due ($3,636)

                                                                                                      2008 ($'OOO)
                                                                                        Past Due but Not Impaired
                                                      Neither Past
                                                          Duenor               Oto3             3to6               6to12       Greaterthan
                                                         Impaired            Months          Months                Months               1   Year         Impaired       Total
Third Party Insurance Fund                                                                                            -                         10             49         59
Compensation (Industrial Diseases) Fund                           2               2                                                                                        5

Government Insurance Fund                                                                         97                  -                                       150        247
Insurance Commission General Fund                             148                72               16                       2                185               426        849
Total Insurance Commission                                    150                74              113                       2                195               626       1160
Corporation Inwards Reinsurance                                                  11                7                       2                -                             20
Total Consolidated                                            150                85              120                       4                195               626       1,180

      All impaired receivables are greater than   1   year past due, with the exception of Compensation (Industrial Diseases) Fund where the impaired receivables are
      less than 1 year overdue.




                                                                                                                                                                                 ANNUAL RSPORT 2009
REFORIJOI7 hAL ANN                                                                                  AUSTRALIA WESTERN OF COMMISSION CE
                                                                                                                                             AUDITED
    S   $7                                                                                                                                    OAG
                                                                                                           40. and 10 Notes
        Refer entity. economic the of pooi investment the of share RiskCover's represents Note Promissory Rate Floating The                  (i)
                                                                                                                        consolidation.
        on eliminated is which million $18451 of Corporation the to payable amount non-current a of exception the with Commission
                                                                         -
        Insurance the and Consolidated both for same the is Payables       Liabilities Financial Other for exposure risk liquidity The
         1,912,293        312,270           517,664          335,117           747,242                                                   Total
                                            -                -
         334,431                                                               334,431          (i) Note Promissory Rate Floating RiskCover
                          13                -                -
         32,613                                                                32,600                                              Payables
                                                                                                                 Liabilities Financial Other
         1,545,249        312,257           517,664          335,117           380,211
                                                                                                                                     Liability
                                                                                                  Claims Outstanding Consolidated Total
         1,857            612               424              296               525                        Reinsurance Inwards - Corporation
         1,543,392        311,645           517,240           334,821          379,686
                                                                                                                Liability Claims Outstanding
                                                                                                               Commission Insurance Total
         90,329           48,313            21,979           10,508            9,529                 Liability Claims Outstanding Total ICGF
         6,231            1,024             2,047             1,491            1,669             Claims Non-Asbestos-Related Act: EISF -
         23,557           17,249            4,101            1,287             920                    Claims Asbestos-Related Act: EISF -
         1,669            920               389              170               190                                           Liability Public -
         58,872           29,120            15,442           7,560             6,750                               Compensation Workers' -
                                                                                                       Fund General Commission Insurance
         45,144           19,076            14,170           6,356             5,542                   Liability Claims Outstanding Total GIF
         1,339            288               439              261               351                                          Liability Public -
         43,805           18,788            13,731           6,095             5,191                               Compensation Workers' -
                                                                                                                Fund Insurance Government
         5,009            2,650             1,329            550               480                 Fund Diseases) (Industrial Compensation
         1,402,910        241,606           479,762          317.407           364,135                           Fund Insurance Party Third
                                                                                                              Liability Claims Outstanding
        Total            Years 5        Years        Years                    Year 1
                         than More      5 to 2       2 Ito                    than Less
                                                in Maturity
                                 ($000) 2009 CONSOLIDATED
                                                                                             date: balance at liabilities, financial key other
        certain and liability claims outstanding discounted gross entity's economic the of profile maturity the detail tables following The
                                                              days). 25 (2008: days 28 was Portfolio Cash the of maturity to term mean the
        2009, June 30 At realisable. easily be to considered are securities These managers. Interest Fixed and/or Equity Commissions
        Insurance the with investments redeeming by met are requirements cash Conversely, managers. external with placed are
        requirements operational business of excess in flows Cash basis. daily a on monitored are flows Cash portfolio. total the of 4% is
        allocation cash target The business. insurance the of requirements liquidity day-to-day the meet to managed is Portfolio Cash The
                                                                                                       due. when liabilities Commissions
        Insurance the meet to liquidity sufficient always is there that ensuring for responsible is Division Investments Manager
        The due. fall they as obligations financial its meet to able be not will entity economic the that risk the to refers risk Liquidity
                                                                                                                        Risk Liquidity    (iii)
                                          (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                              4.
                                STATEMENTS FINANCIAL THE OF T PA FORMING AND TO NOTES
  '09 REPORT ANNUAL                                                                   AUSTRALIA WESTERN OF COMMISSION SURANCE
                                                                                                                                       86
                                                                                                                                     AUDITED
                                                                                                                                       OAG
                                                                                                               40. and 10
 Notes Refer entity. economic the of pool investment the of share RiskCovers represents Note Promissory Rate Floating The      (i)
                                                                                                               consolidation.
 on eliminated is which million $18451 of Corporation the to payable amount non-current a of exception the with Commission
 Insurance the and Consolidated both for same the is Payables - Liabilities Financial Other for exposure risk liquidity The
 1,918,028           376,011        483,972        281,889          776,156                                                 Total
 424,015                                                           424,015         (i) Note Promissory Rate Floating RiskCover
 34,093              13                                            34,080                                              Payables
                                                                                                     Liabilities Financial Other
  1,459,920          375,998        483,972        281,889          318,061
                                                                                                                        Liability
                                                                                     Claims Outstanding Consolidated Total
  3,287              1,411          953            414             509                      Reinsurance Inwards - Corporation
  1,456,633          374,587        483019         281,475         317,552
                                                                                                 Liability Claims Outstanding
                                                                                                 Commission Insurance Total
  80,041             40,224         20,007         9,073           10,737               Liability Claims Outstanding Total ICGF
  5607               785            1,998          1,414           1,410            Claims Non-Asbestos-Related Act: ElSE -
  11,247             6,922          2,229          759             1,337                 Claims Asbestos-Related Act: EISF -
  2,459              1,379          570            240             270                                         Liability Public -
  60,728             31,138         15,210         6660            7,720                              Compensation -Workers
                                                                                          Fund General Commission Insurance
  44,381             23,661         11,294         4,727           4.699                  Liability Claims Outstanding Total GIF
  839                125            267            181             266                                         Liability Public -
  43,542             23,536         11,027         4,546           4,433                                                        -
                                                                                                       Compensation Workers'
                                                                                                   Fund Insurance Government
  5,691              3,041          1,560          560             530                Fund Diseases) (Industrial Compensation
  1,326,520          307,661        450,158        267,115         301,586                          Fund Insurance Party Third
                                                                                                 Liability Claims Outstanding
 Total               Years 5        Years         Years           Year 1
                     than More      5 to 2        2 Ito           than Less
                 I
                                            in Maturity
                             ($000) 2008 CONSOLIDATED
                                  (continued) PROCEDURES AND POLICIES MANAGEMENT RISK                                         4.
                          STATEMENTS FUNANCAL THE OF PART FORMING AND TO NOTES
121)
 REPORT'O9 ANNUAL                                                                  AUSTRALIA WESTERN OF COMMISSION ANCE
      (If
                                                    Fund. Insurance Government the in existing deficit accumulated
 any for liability assumed Treasury whereby 1996, May of decision Cabinet's with accordance in received Income            (Hi)
                                               40. Note Refer Fund. RiskCover the administering with associated costs
 the for Finance and Treasury of Department the by to/payable charged amount the to relates Income Fee Management         (ii)
                                                                  Equipment. and Plant Property, within presented
 be to Equipment and Plant Property, 116 AASB by required Buildings and Land to relates Income Property Other              (I)
  322,351       241,830        322,018       241,622                                            Income and Revenue Total
  35,016        56,706         34,823        56,523
  135           134            135           134                                                            Sundry
  407           258            407           258                                                            Interest
 (5,245)        7,457         (5,245)        7,457            (iU)    Fund Insurance Government - Indemnity of Right
  20,990        24,460         20,797        24,277           (ii)                               Fees Management
  18,729        24,397         18,729        24,397           (i)                           Income Property Other
                                                                                                                        Other
 (75,333)       (202,828)     (75,333)       (202,828)
  278           420            278           420                                                                  Other
  14,469        -              14,469        -
                                                                       Off Written Previously Investments of Recovery
  28,628        (37,957)       28,628        (37,957)                          Gain/(Loss) Realised Exchange: Foreign
 (20,019)        38,843       (20,019)        38,843                         Gain/(Loss) Unrealised Exchange: Foreign
  21,464        (193,422)      21,464        (193,422)                   Gain/(Loss) Realised Values: Fair in Changes
 (277,889)      (126,125)     (277,889)      (126,125)                 Gain/(Loss) Unrealised Values: Fair in Changes
  35,656         37,358        35,656         37,358                                                           Interest
  96,515         46,887        96,515         46,887                                                         Dividends
  25,565         31,168        25,565         31,168                                       Income Property Investment
                                                                Value Fair in Movements including lncome/(Loss) Investment
  2,032             3,311      1,887          3,286
  4,120          3,393         4,120          3,393                                                             Other
 (2,088)        (82)          (2,233)        (107)                                                        Reinsurance
                                                                                                                 Recoveries
  413           416            413            416                                       Commission Reinsurance Outwards
  360,223       384,225        360,228       384,225
 (10,529)       (11,854)      (10529)        (11,854)                                                         Direct
                                                                                           Premium Unearned in Movement
  -             -
                               5                                                                 Reinsurance Inwards
  370,752       396,079        370752        396,079                                                           Direct
                                                                                                                  Premium
                                                                                        items: revenue specific following the
                                                                        includes Benefit Equivalent Tax Income before Loss
 $'OOO          $'OOo         $'oOO          $O00            Notes
 2008           2009          2008           2009
  COMMISSION INSURANCE                CONSOLIDATED                                  INCOME AND REVENUE                    5.
                     STATEMENTS FINANCUAL THE OF PART FORMING AND TO NOTES
121
         REPOR ANNUAL                                                                            AusritAutA   WESTERN OF CO'lMBSION trANCE   u'
                                                                                                                                                  86
9                                                                                                                                            AUDITED
                                                                                                                                                  O.AG
                                                                                   Equipment. and Plant Property, within presented
           be to Equipment and Plant Property, 116 AASB by required Buildings and Land to relate Expenses Property Other
               9. Note Refer money'. of value 'time the on based value present the account to bring to Measurement and Recognition
           Instruments: Financial 139 AASB by required (Non-Current) Receivables Other on Discount the of value the in Movement
                                                                                                 40. Note Refer Commission.
           Insurance the of pooi investment the of losses of share RiskCover's represents Fund RiskCover to charged Interest           (I)
           390,419        482,002        389,560        481,156                                                          Expenses Total
           11,705         14,678         12,932         16,166
           (1,227)        (1,488)                                         10,31                     Corporation of Value in Increase
           85              102           85             102                                                    Equipment and Plant
                                                                                      Property, of Disposal from Arising Losses Net
           12,847         16,064         12,847         16,064            (iii)                           Expenses Property Other
                                                                                                                          Expenses Other
           45,814         62,122         45,812         62.127
           3,773          4,463          3,771          4,463                                                              Other
           4,248          5,491          4,248          5,491                                          Software and Hardware IT
           1,875          3,468          1,875          3,468                                                 Superannuation -
           18,053         20,428         18,053         20,428                            Costs Employee-Related and Salaries -
           719            1,244          719            1,244                                                 -LongServiceLeave
           1,803          2,035          1,803          2,035                                                     Leave -Annual
                                                                                                                Benefits Employee
           1,503          1,528          1,503          1,528                                                         Depreciation
           803            1,422          803            1,422                                       Assets Intangible Amortisation
            3,174         11,616         3,174          11,616                                                 DebtRecoveryCosts
            4,964         6,545          4,964          6,545                                        Consultants and Contractors
            314           329            314            329                                        Fees Commissioners' of Board
            384           394            384            394               38                              Auditor of Remuneration
           (70)            111          (70)            116                               Receivables of Impairment in Movement
           49             72             49             72                                                    Charges and Levies
           4,222          2,976          4,222          2,976                                  Research and Prevention Accident
                                                                                             Expenses Administration and Underwriting
           10,109         11,007         10,109         11,007                                                          Costs Acquisition
           (1,188)                      (1,188)                           19                   Liability Risk Unexpired in Movement Net
           (14,423)       (41,242)       (15,863)      (42,244)
           329            (5,866)        329                                                           Non-Current Receivables:
                                                       (5,866)            (ii)
                                                                                        Other on Discount in (Decrease)/Increase
            1,440         1,002                                                                       Corporation to Paid Interest
            133           96              133           96                41           Fund Insurance Community to Paid Interest
           (16,325)       (36,474)       (16,325)      (36,474)           40(i)               Fund RiskCover to Charged Interest
                                                                                                               (Recoup)/Costs Finance
           19,918         21,540         19,918         21,540
           1,123          1,711          1,123          1,711                                          Expenses Administration
           8,118          6,689          8,118          6,689                       Fees Custodian and Management Investment
           10,677         13,140         10,677         13,140                                    Expenses Property Investment
                                                                                                               Expenses Investment
           3,855          4,123          3,776          4,123                                                      Reinsurance Outwards
           314629         409,774        314064         408,437
                          -             (565)          (1,337)                                                 Reinsurance Inwards
           314629         409,774        314629         409774                                                               Direct
                                                                                                                                  Claims
                                                                                                        expenses: specific following the
                                                                                    includes Benefit Equivalent Tax Income before Loss
           $,000          $'Ooo         $'000          $,000              Notes
           2008           2009          2008           2009
           COMMISSION INSURANCE                 CONSOLIDATED                                                       EXPENSES           6.
                                  STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
    2I
 REPOR'2OU') ,6.J4NUAL                                                                                     RALtA ADS WESTERN OF COMMISSION ANCE
                                              years. financial previous all in borne risks the of re-assessment   a to   relate claims Years' Prior   (ii)
                                                                     year, financial current the ri borne risks to relate claims Year's Current        (I)
     312,597       (66,020)        378,617             312,177       (66,440)         378,617                                      Incurred Claims Net
 (82,694)          (19,984)       (62,710)            (82,247)       (19,537)        (62,710)                                   Movement Discount Net
     8,900         350) (36,       45,250              8,876          (36374)         45,250                  Recoveries Other and Reinsurance -
                                                                                                                 Movement Discount and Discount
  (91,594)           16,366       (107,960)           (91,123)         16,837        (107,960)                            Incurred Claims Gross -
                                                                                                                    Movement Discount and Discount
     395,291       (46,036)        441.327             394,424        (46,903)        441.327                     Undiscounted - Incurred Claims Net
  (10,932)           14,988       (25,920)            (10,763)         15157         (25920)                                        Undiscounted -
                                                                                                                   Recoveries Other and Reinsurance
     406,223       (61,024)        467,247             405,187        (62060)         487,247                                   Undiscounted -
                                                                                                     Expenses Related and Incurred Claims Gross
                                                                                                                                         Year Previous
  $000              3'OOO         $'Ooo               $,000           S'OOO          $,000
                    (ii)          (I)                                 (ii)           (i)
  Total             Years Prior   Year Current        Total           Years Prior    Year Current
                           2008                                           2008
     406,463         3,145         403,318             405,151         1,833          403,318                                      Incurred Claims Net
     176,183         192,713      (16,530)             177,000         193,530       (16,530)                                   Movement Discount Net
  (17,838)          (62,888)       45,050             (17,887)        (62,937)        45,050                 Recoveries Other and Reinsurance -
                                                                                                                 Movement Discount and Discount
     194,021         255,601      (61,580)            194,887          256,467       (61,580)                             Incurred Claims Gross -
                                                                                                                    Movement Discount and Discount
     230,280        (189,568)      419,848             228,151        (191,697)       419,848                     Undiscourited - Incurred Claims Net
     14,526          38,946       (24,420)             14,600          39,020        (24,420)                                      Undiscounted -
                                                                                                                  Recoveries Other and Reinsurance
     215,754        (228,514)      444,268             213,551       7) (230.71       444,268                                   Undiscounted -
                                                                                                     Expenses Related and Incurred Claims Gross
                                                                                                                                          Year Current
     $000           $000          $000                S'OOO           $'OOO          8'OOO
                    (H)           (i)                                (H)             (i)
     Total          Years Prior   Year Current        Total           Years Prior    Year Current
                        2009                                                 2009
               COMMISSION INSURANCE                                 CONSOLIDATED                           INCURRED CLAIMS NET                        7.
                                        STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
i2
REPJ2O'          ANNUAL                                                                   AUSTRALIA WESTERN OF COMMISSION ANCE         Ii
                                                                                                                                       86
                                                                                                                                     AUDITED
  &
          '
                                                       1(I). Note Refer Accounting. Effect Tax Income regarding details further For
  (33,958)        (79,335)      (33.432)   (78,697)                                               Benefit Equivalent Tax Income
  (242)            (533)        (242)      (87)                                                              Items Miscellaneous
  (3,776)          -            (3,776)     -
                                                                                  Off Written Previously Investments of Recovery
  (1,895)          (420)        (1,526)    (420)                                                        Years Prior of Tax Current
                                                                  the to Relation in Year Current the in Recognised Adjustments
      -
                   (6,330)                 (6,330)                                                                         Losses
                                                                Tax Forward Carry into Credits Imputation Excess of Conversion
  (7,625)                       (7,625)     -
                                                                                                              Dividends Tax-Free
  (20,420)         (72,052)     (20,263)   (71,860)                    30%) (2008: 30% of Rate Tax Income Statutory the at Tax
  (68,068)         (240,172)    (67,542)   (239,534)                                  Benefit Equivalent Tax Income before Loss
                                                                                                                        PAYABLE
                                                                    TAX FACIE PRIMA TO TAX INCOME OF RECONCILIATION
      16,694       (6,674)      16,694     (6,674)                  Equity in Reported (Benefit)/Expense Equivalent Tax Income
      16,694       (6,674)       15,694    (6,674)           Plaza) (Westralia Land Terrace George's St 167 and Centre Forrest
                                                                 -
                                                                   Buildings and Land of (Decrement)/lncrement Revaluation Net
                                                                                                                     Equity: to
                                                             Directly Credited or Charged Items to Related Tax Income Deferred
                                                                                 EQUITY IN DIRECTLY RECOGNISED AMOUNT
      (33,958)     (79,335)     (33,432)   (78,697)                                                                 Statement
                                                               Income the in Reported (Benefit)/Expense Equivalent Tax Income
       -                        -
                    46,038                  46,038                                                   Losses Tax of Recognition
      (93,371)     (81.768)     (93,372)   (81,451)               Differences Temporary of Reversal and Origination to Relating
                                                                                                           Tax Income Deferred
  (1,053)           2,815       (1,053)     2,754              Years Previous of Tax Income Current of Respect in Adjustments
   60,466          (46.420)      60,993    (46,038)                           (Benefit)/Expense Equivalent Tax Income Current
                                                                                                          Tax Income Current
                                                                                         EXPENSE EQUIVALENT TAX INCOME
  $000             $000         $000       $000
  2008             2009         2008       2009
      COMMISSION INSURANCE           CONSOLIDATED                                    EQUIVALENT TAX INCOME                      8.
                             STATEMENTS FINANCIAL THE OF PART FORMNG AND TO NOTES
  .12k
REPO,,/         ANNUAL                                                                        AIJSTRALtA WESTERN OF COMMLSSON CE         INSUR
                                                                                                                                          86
            (                                                                                                                       AUI?JTEO
                                                                                                                   Corporation. the
  to payable, or from, receivable amounts in reflected are amounts Such approach. group" within taxpayer "separate on based entity,
  head the from or to payment equivalent tax a pay to agreed have Corporation, the subsidiary, its and Commission Insurance the
  agreement funding tax the of terms the Under agreement. funding tax a into entered have group consolidated tax the of Members
                                                               Group Consolidated Tax the of Members by Accounting Effect Tax
                        group. consolidated tax the of entity head the is Commission Insurance The 2002. July 1 from effect with group
   consolidated tax a formed have Corporation, the subsidiary, resident Australian owned 100% its and Commission Insurance The
                                                                                                                   Consolidation Tax
   (93,371)       (81,768)                                                                   Benefit Equivalent Tax Income Deferred
                                 (138,887)      (50,445)                                           Liability Tax Income Deferred Net
                                  23.425         80,997
                  (1.500)         -              1,500                                                       Impairment Securities
   127            (319)           4,541          4,860                                                         Various - Provisions
   (1,610)        (1,582)         15,045         16,627                                           Costs Settlement Claims Indirect
    621            1,445          2,844          1,399                                                                Income Trust
                                  -
                  (55,380)                       55,380                   Income Taxable Future Against Offset for Available Losses
   (2,579)        (236)           995            1,231                                  Equipment and Plant Property, Depreciable
                                                                                                             Assets Tax Deferred
                                 (162,312)      (131,442)
   -                              -
                   18                           (18)                                                                          Other
    478           (1,730)        (7,141)        (5,411)                                                    Other - Receipts Property
   (98)            1,761         (13,097)       (14,858)                                                        -
                                                                                                          Other Costs Recoverable
   (98,988)       (13,818)       (17,838)       (4,020)                                                            Gains Unrealised
                                                                        Net - Loss and Profit Through Value Fair at Assets Financial
   (1,073)        (2,734)        (58,557)       (49,149)                                  Plaza) (Westralia Terrace George's St 167
                                                                                    -
                                                                 and Centre Forrest   Equipment and Plant Property, of Revaluations
    9,751         (7,693)        (65,679)       (57,986)                           Value Fair to Buildings and Land of Revaluations
                                                                                                           Liabilities Tax Deferred
                                                                                                         ISSON COMM INSURANCE
   (93,372)       (81,451)                                                                  Benefit Equivalent Tax Income Deferred
                                 (138,378)      (50,253)                                           Liability Tax Income Deferred Net
                                  23,934         81,189
   -
                  (1,500)                        1,500                                                      Impairment Securities
   127            (319)           4,541          4,860                                                                 -
                                                                                                              Various Provisions
   (1,611)        (1,265)         15,554         16,819                                          Costs Settlement Claims Indirect
   621             1,445          2,844          1,399                                                               Income Trust
   -
                  (55,380)                       55,380                  Income Taxable Future Against Offset for Available Losses
   (2,579)        (236)           995            1,231                                 Equipment and Plant Property, Depreciable
                                                                                                             Assets Tax Deferred
                                 (162,312)      (131,442)
   -
                   18                           (18)                                                                           Other
    478           (1,730)        (7,141)        (5,411)                                                         -
                                                                                                          Other Costs Recoverable
   (98)            1,761         (13,097)       (14,858)                                                   Other - Receipts Property
   (98,988)       (13,818)       (17,838)       (4,020)                                                             Gains Unrealised
                                                                      Net - Loss and Profit Through Value Fair at Assets Financial
   (1,073)        (2,734)        (58,557)       (49,149)                                 Plaza) (Westralia Terrace George's St 167
                                                                and Centre Forrest - Equipment and Plant Property, of Revaluations
    9.751         (7,693)        (65,679)       (57,986)                           Value Fair to Buildings and Land of Revaluations
                                                                                                           Liabilities Tax Deferred
                                                                                                                    CONSOLIDATED
                                                                              following: the to relates June 30 at Tax Income Deferred
                                                                                                             TAX INCOME DEFERRED
   $000       $.000              $'Ooo       $.000
   2008       2009               2008        2009
      STATEMENT INCOME                SHEET BALANCE                     (continued) EQUIVALENT TAX INCOME                          8.
                             STATEMENTS          FANCAL THE                OF PART FORMNG AND TO NOTES
  125
      2 RUFORr ANNUAL                                                                   AUSTRALIA WESTERN OF COMMISSION E       (        INSUR
                                                                                                                                          86
                                                                                                                                AUDITED
                                                                                                                                 OAG
    2009. in Commission Insurance the to repaid were which action Recovery Group Bell the in Australia Western of Court
 Supreme the by ordered previously costs of secLirity of payment the to relating million) $44.6 (2008: million $NiI and 10)
 and 6 Notes (Refer money of value 'time the on based value fair account to bring to discounted is and action recovery
 debt a in incurred costs to relating million) $43.7 (2008: million $49.6 inter-alia includes (Non-Current) Receivables Other
                                                                                                   17. Note Refer
 Act. this under paid expenses and payments all for WA WorkCover from reimbursement of right the has Commission
 Insurance Ihe 1980, Act Fund Supplementation Indemnity Employers' the of 25(2) Section with accordance In
                                                                                              Fund. Insurance Government
 the in existing deficit accumulated any for liability assumed Treasury 1996, May of decision Cabinet's with accordance In
  626            171             626            176                  4                               Year the of End at Balance
  1              112                            117                                         Year the During Made Provision New
 (71)           (1)             (71)           (1)                                      Required Longer No Provision Impairment
                (566)                          (566)                                      Year the During Off Written Impairment
  696            626             696            626                                                  Year the of Start at Balance
                                                                                         Impairment for Provision in Movement
  247,749         207,391        247,795        207,397
  90,267          51,451         90,267          51,451             (10)                                       Receivables Other
  50,831         64,398          50,831         64,398
  14,702         27,094          14,702         27,094              (ii)                                         WorkcoverWA
  36,129         37,304          36,129         37,304              (i)                            Fund Insurance Government
                                                                                                                Indemnity of Right
                                                                                          Liability Risk Unexpired on Recoveries
  10,700                         10,700
                                                                                         Other and Reinsurance Future Expected
  95951          91,542          95,997         91,548                                        Receivable Recoveries Other and
                                                                               Reinsurance Future Expected of Value Discounted
                                                                                                                     Non-Current
  41,428          43,011         40,927         42,709
  6,083          4,153           5,556          3,832                                                       Receivables Sundry
                                                                                                              Receivables Other
  6,545          7,952           6,545          7,952
  2,002          2,457           2,002          2,457               (ii)                                        WorkCoverWA
  4,543          5,495           4,543          5,495               (I)                            Fund Insurance Government
                                                                                                              Indemnity of Right
  25,325         27,439          25,351         27,458
 (625)           (171)          (625)          (176)                                             Impairment for Provision Less:
                                                                                             Receivable Recoveries Other and
  25,950          27,610         25,976         27,634
                                                                              Reinsurance Future Expected of Value Discounted
  3,475           3,467          3,475          3,467
 (1)                            (1)                                                                Impairment for Provision Less:
  3,476           3,467          3,476          3,467                                                      Receivable Premiums
                                                                                                                          Current
 $'oOo           $,000          $'Ooo          $,000               Notes
 2008            2009           2008           2009
  COMMISSION RANGE INSU                 CONSOLIDATED                                                   RECEIVABLES                  9.
                    STATEMENTS FINANCIAL THE OF PART FORMING AND TO NSTES
12fl
9
      - REPORT ANNUAL                                                                       AUSTRALIA WESTERN OF COMMISSION CR           INSLIR
                                                                                                                                           86
                                                                                                                                  AUDITED
                                                                                                                                         'OAG
            (ee). 1 Note Refer Loss. or Profit through Value Fair at Assets Financial to relating assumptions valuation key the For
                                                                                                           value. fair
exceeds investment original Commission's Insurance the that extent the to date balance at down written is Corporation
the in investment original The Corporation. the of capital share issued the of 100% owns Commission Insurance The                 (ii)
                                                                                                           40. Note
Refer entity. economic the of pool investment the of share RiskCover's represents Note Promissory Rate Floating The                (I)
 1,767,405        1,608,104      1,749,356       1,588,567
 336,419          325,315        318,370         305,778
 18,049           19,537                                                           Date Balance at Subsidiary in Investment of Value
(81,951)         (80,463)                                                                     Subsidiary in Down Write for Provision
 100,000          100,000                                            (ii)                          Subsidiary in Investment Original
 318,370          305,778        318,370         305,778
 15,053           13,605         15,053          13,605                                                                  Receivables
 171,540          161,279        171,540         161,279                                                             -
                                                                                                            Unlisted Trust Property
 65,494           73,930         65,494          73,930                                                Trusts Unit Assets Alternative
 66,283           56,964         66,283          56,964                                                    Trusts Unit Interest Fixed
                                                                                                         Investments NonCurrent
 1,430,986        1,282,789      1,430,986       1,282,789
 2,532            15,777         2,532           15,777             25(c)                      Contracts Exchange Foreign Forward
(424,015)        (334,431)      (424,015)       (334,431)           (I)                              Note Promissory Rate Floating
 23,208           23,014         23,208          23,014                                                                Receivables
 105,824          78,775         105,824         78,775                                           Assets Equivalent Cash and Cash
    661           1,560           661            1,560                                                              Account Margin
 166,851          82,729         166,851         82,729                                               Trusts Unit Assets Alternative
 190,794          174,038        190,794         174,038                                                          Trusts Unit Equity
 880,705          828,813        880,705         828,813                                                             Shares-Listed
 102,580          85,361         102,580         85,361                                                               Bonds Indexed
 140,072          127,207        140,072         127,207                                                   Trusts Unit Interest Fixed
 241,774          199,946        241,774         199,946                                                       Bonds Interest Fixed
                                                                                                              Investments Current
$'000            $'OoO           $'000          $,000              Notes
2008             2009            2008           2009                              LOSS OR PROFIT THROUGH
COMMISSION INSURANCE                     CONSOLIDATED                       VALUE FAIR AT ASSETS FINANCIAL 10.
                    STATEMENTS FNANCIAL ThE                                 F   I PART FORMING AND TO NOTLES
     REPORT ANNUAL                                                                      AUSTRALIA WESTERN OF COMMISSION ANCC
                           dividends. represented million .551 $31 and Andersen Arthur auditors, SECLs with reached settlement
 legal a to related million $26741 which of million $68292 received had Commission Insurance the 2009, June 30 to Up
                                                                                                               bonds. Bell the
 acquired it time the at Commission Insurance the by TBGL in shares of purchase the to relation in SECL by given indemnity an
 from arose judgement The 1996. June 21 dated Australia Western of Court Supreme the of judgment a to pursuant Holdings)
 Corporation Bond as known (formerly SECL by off) written (previously million $200967 owed was Commission Insurance The
                                   Indemnity (SECL) Liquidation) (in Ltd Corporation Equities Southern and Shares TBGL
                                                                                                          action. recovery Bell the
 of outcome final the pending zero, at bonds Bell the of value carrying the maintain to appropriate is it that believes Board The
                                                                                                           processes. appeal
 of subject the is Judgement The billion. $1.6 of excess in repay to Banks the requiring Australia Western of Court Supreme
 the in Judgement obtaining in successful were Liquidators The London. of plc Bank Lloyds and Corporation Banking Westpac
 by headed banks of syndicates two from money recovering of costs their meet to Liquidators the with agreements indemnity
 to pursuant subsidiaries their and BGF TBGL, of Liquidators the funding creditors the of one is Commission Insurance The
                                                                                                       1988. April 29 dated
 agreement underwriting an to pursuant Commission Insurance the by purchased were which bonds) (Bell bonds convertible
 subordinated BGF and TBGL of respect in interest) (plus million $140 off written previously has Commission Insurance The
                                                                                                              Bonds Convertible
                         (BGF) Liquidation) (in Ltd Pty Finance Group Bell and (TBGL) Liquidation) (in Ltd Group Bell The
                                                                                                              Investments: Other
          (continued) LOSS OR PROFIT THROUGH VALUE FAIR AT ASSETS FINANCIAL 10.
                   STATEMENTS FINANCAL THE OF PART FORMING AND TO NOTES
:122
  C
0000
OJ     NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
 0,'   11. PROPERTY, PLANT AND EQUIPMENT

                                                                                                                 CONSOLIDATED 2009 )$'OOO)
                                                                                             Buildings
                                                                                               under
                                                                            Freehold        Development      Plant and       Furniture and   Computer        Motor           Leasehold
       Current Year                                      Freehold Land      Building       /Construction    Equipment           Fittings     Hardware       Vehicles       Improvements             Total
       Cost or Valuation
       SalanceatStartoftheyear                                  40000          250062            11103            1052                167         6,462           1,133            3,421        313,400
       Additions                                                                  2,242          15,932              60                48         1,212             537             462          20,493
       Disposals                                                       -               -               -            (12)               (1)         (503)           (487)                         (1,003)
       Net Revaluation Decrements (i)                            (8,100)        (23,820>               -                 -               -              -              -                        (31,920)
       Transfers to Intangibles                                        -               -             (12)                -                                                                          (12)
       Balance at End of the Year                               31900          228,484           27,023           1,100               214         7,171           1183             3,883        300,958

       Accumulated Depreciation
       Balance at Start of the Year                                                    -                            691                87         5,302             126            2,544           8,750
       Depreciation Expense for the Year                               -          9,673                -            119                16           942             137              330          11,217
       Disposals                                                       ..              -               -             (10)              (1)         (490)           (106)                            (607)
       Net Adjustments from Revaluation Decrements (i)                           (9,673)                                                 -                             -                          (9,673)
       Balance at End of the Year                                                                      -            800               102         5,754             157            2,874           9,687

       Carrying Amount at End of the Year                       31,900         228,484           27,023             300               112         1,417           1,026            1,009        291,271

       All Property, Plant and Equipment is held within the Insurance Commission General Fund of the Insurance Commission.

       Freehold Land and Building which comprise land and building at 219 and 221 St George's Terrace (The Forrest Centre) and land at 167 St George's Terrace (Westralia Plaza) were valued at bslsnce
       date. Refer Note i(s). The Independent Valuer used was Mr J Fenner AAPI of CB Richard Ellis Pty Ltd.

       Buildings under Development/Construction being the development of 167 St George's Terrace (Westralia Plaza) and the next phase of the Ellenbrook development are carried at cost. Refer Note i(s).

       (I)   Total movement in Asset Revaluation Reserve before tax.




                                                                                                                                                                                                A551'T 5PPORTO59
 C \
moO'
  >    J
           NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS
 m0J
           11. PROPERTY, PLANT AND EQUIPMENT (continued)

                                                                                                                      CONSOLIDATED 2008 ($000)
                                                                                                  Buildings
                                                                                                   under
                                                                                Freehold        Development     Plant and         Furniture and   Computer        Motor           Leasehold
           Prior Year                                        Freehold Land      Buildings       /Construction   Equipment            Fittings     Hardware       Vehicles       Improvements           Total

           Cost or Valuation
           Balance at Start of the Year                              29,192         211454              3,556            970               166         6,261            968            3,264      255,831
           Additions                                                       -          1,668             7,548             82                  1           573           702              156       10,730
           Disposals                                                       -                -               -                                            (372)         (537)                         (909)
           Net Revaluation Increments (i)                            10,808          36,940                                                   -                                            -       47,748
           Impairment Losses Charged to Profit                                              -                                 -
           Transfers                                                                        -                                 -                                                                               -
           Balance at End of the Year                                40,000         250,062           11,104           1052                167         6,462          1,133            3,420      313,400

           Accumulated Depreciation
           BalanceatStartaftheYear                                                          -                            585                72         4,843            120            2,104          7,724
           Depreciation Expense for the Year                               -          7,900                 -            106                15           825            125              440          9,411
           Disposals                                                       -                -               -                 -                         (366)          (119)                           (485)
           Net Adjustments from Revaluation Increments (i)                 -          (7.900)               -                 -                                             -                        (7,900)
           BalanceatEndoftheYear                                           -                                -           691                 87         5,302            126            2,544          8,750

           Carrying Amount at End of the Year                        40,000         250,062           11,104            361                 80         1,160          1,007             876       304,650

           All Property, Plant and Equipment is held within the Insurance Commission General Fund of the Insurance Commission

           Freehold Land and Building which comprise land and building at 219 and 221 St George's Terrace (The Forrest Centre) and land at 167 St George's Terrace (Westralia Plaza) were valued at balance
           date. Refer Note i(s). The Independent Valuers used were MrJ Fennel AAPI of GB Richard Ellis Pty Ltd.

           Buildings under Development/Construction being the development of 167 St George's Terrace (Weatralis Plaza) is carried at cost. Refer Note 1(s).

           (i)   Total movement in Asset Revaluation Reserve before tax.




  9
  -4




                                                                                                                                                                                                  44.ThJIIM   Tpn5T')O55
            eei'oirv ANNUAL                                                                        AUST1LIA WESTERN     U   ScIiMMIsSION
C3\\
                                                                                                                                   AUDITED\
       &
                                                                                                                                         ,-1-.
                7,151       8,860          7,151          8,860                                       Year the of End at Amount Carrying
                3,951       5,373          3,951          5,373                                                 Year the of End at Balance
            803             1,422          803            1,422                                          Year the for Expense Amortisation
            3,148           3,951          3,148          3,951                                                Year the of Start at Balance
                                                                                                                Amortisation Accumulated
            11,102          14,233         11,102         14,233                                                 Year the of End at Balance
                            12             -              12                                    Equipment & Plant Property, from Transfers
                            514            -              514                                                            Progress In Work
            1,844           2,605          1,844          2,605                                                                   Additions
            9,258           11,102         9,258          11,102                                               Year the of Start at Balance
                                                                                                                                      Cost
                                                                                                       ASSETS INTANGIBLE
                                                                    1(v). Note refer Properties, Investment of assumptions valuation key For
                                                                                                                  Sale. for Held Assets
            Non-Current as classified longer no were properties investment these 2008 in therefore proceed, not did sale The Sale. for
            Held Assets Non-Current as reclassified been had Centre Shopping Marketplace Livingston and land Ellenbrook 2007, During
                                 million. $15.15 of incentives by adjusted million $374.20 of value assessed independently reflects million
            $359.05 of adopted value the date balance At Ltd. Pty (WA) Savills of AAPI Walker C Mr and MRICS AAPI Foster-Key M Mr
            were Centres Shopping Ellenbrook and Marketplace Livingston for used Valuers Independent The Ltd. Pty Ellis Richard CS of
            AAPI Fenner J Mr was Terrace George's St 141 for used Valuer Independent The date. balance at investments these of value
            fair assess to used were valuers Independent Centre. Shopping Ellenbrook and Centre Shopping Place Market Livingston
            Terrace, George's St 141 at buildings and land Square Westralia the comprise properties investment date, balance At
             388,276        359,051        388,276        359,051                                              Year the of End at Balance
                            -              56,750         -
             56,750                                                                                                            Sale for Held
                                                                                           as Classified Assets Non-Current from Transfers
             19,474        (29,874)        19,474        (29,874)                                (Decrements)/lncrements Revaluation Net
             2,168          649            2,168          649                                                                      Additions
             309,884        388,276        309,884        388,276                                               Year the of Start at Balance
                                                                                                                                  Valuation
                                                                                                                        ION LIAT RECONCI
             388,276        359,051        388,276        359,051                                           Buildings and Land Freehold
                                                                                                                            Valuation At
            $'oOD          $'oOO          $'OOo          $,000
            2008           2009           2008           2009
            COMMISSION INSURANCE                  CONSOLIDATED                                PROPERTIES INVESTMENT 12.
                              STATEMENTS flNANCIAL THE OF PART FORMING AND 10 TES S N
           31    1
     REPORT,   ANNUAL                                                                AUSTRALIA WESTERN OF NSURANC1OMM]SSION
                                                                                                                     \86)
                                                                                                                     (AUDTED1
                                                                                                                     OAG\ 7
                                                                                    Fund. General Commission Insurance
the in included is which for liability the Commission, Insurance the by managed is MWRF The operation. into came 1986
Act Australia Western of Commission Insurance the of 4(9) Schedule when 1987 January 1 on Commission Insurance
the to transferred were These 1932. Act Fund Relief Workers' Mine the of 62A Section to pursuant 1984 September
14 on Office Insurance Government State the in vested were (MWRF) Fund Relief Workers' Mine the of assets The
                                                                                                    1052. Interpretation
and agreement tax-sharing the with accordance in payable intercompany an by represented are These Commission.
Insurance the by used as Corporation the of losses tax past of value the from arising amounts to relate Payables Other
 18,464          18,464        13             13
 13              13            13             13                  (ii)                             Fund Relief Workers Mine
 18,451          18,451                       -                   (I)                                        Payshles Other
                                                                                                                 Non-Current
 34,075          32,595        34,080         32,600
 1,934           2,113         1,934          2,113                                          Liability Tax Services and Goods
 15,105          12,472        15,105         12,472                                             Psyables Sundry Investment
 151             251           151            251                  21                              Benefits Employee Accrued
 506             467           511            472                                                        Creditors Reinsurance
 16,379          17,292        16,379         17,292                                                           Creditors Sundry
                                                                                                                      Current
                                                                                                        PAYABLES 16.
 1,118           886           1,118          886
 1,118           886           1,118          886                                                                      Sundry
                                                                                                                 Non-Current
 850             1,721         850            1,721
 320             1,025         320            1,025                                                                  Sundry
 530             696           530            696                                                          Expenses Prepaid
                                                                                                                      Current
                                                                                                 ASSETS OTHER 15.
 1,871           3,930         1871           3,930                                               Year the of End at Balance
(1584)                        (1584)                              19                      Deficiency Premium for Down Write
(8,525)          (11,007)     (8,525)        (11,007)                                        Income to Charged Amortisation
 11,980           13,066       11,980         13,066                                               Deferred Costs Acquisition
 -                             -
                  1,871                       1,871                                              Year the of Start at Balance
$,000            $'Ooo        $'000          $,000              Notes
2008             2009         2008           2009
COMMISSION INSURANCE                  CONSOLIDATED                       COSTS ACQUISITION DEFERRED 14.
                   STATEMENTS FINACAL THE OF PART FORMH\IG                                            AN TO NOTES
  09     REI'ORi ANNUAL                                                                   AUSTRALIA WESTERN OF COMMISSION      5j1'E
                                                                                                                               AUDITED
                                                                                                                                  (OAG
                                                                 9. Note Refer account. to brought been therefore has liability,
   claims outstanding the of value the to equal asset, Indemnity of Right A Act. EISF the under made payments all for WA
   WorkCover from reimbursement of right a has Commission Insurance the Act, EISF the of 25(2) Section with accordance In
                                       claims. non-asbestos-related for million $0.6 and asbestos-related for million 1.1 $1 by 2009
   for claims outstanding gross the increased have estimates additional These non-HIH). (i.e. insurers failed other from arising
   liabilities to relating payments claim futLire estimated additional identified Act ElSE the of assessments actuarial 2009 The
                             claims. related non-asbestos and asbestos regarding estimates included This Limited). Insurance
   CIC and Limited Insurances FAI both (including companies of Group Insurance HIH the of failure the from arising liabilities to
   limited been had payments claim future estimated Act EISF the for liability the of assessments actuarial annual the 2008, In
                                                                                                                         activities.
   underwriting Commission's Insurance the of result a as arisen not have liabilities Act ElSE these that fact the notwithstanding
   claims, outstanding compensation workers' the for liability a up take to required is Commission Insurance the Accordingly,
   policy. that under required indemnity the provide to unable is or law, under dissolved is policy that issued who insurer the
   and policy employers' an by covered is employer the of liability the if law, common at damages for 1981, Act Management
   Injury and Compensation Workers' the under compensation for Commission Insurance the against claim a make may
   employer or person a that states Act ElSE the of 19 Section worker. a of, death or to, injury from arising purposes, incidental
   other and damages, for and conipensation workers' for claims certain of payment the fund to established was Act EISF The
                                           Liabilities Act) (EISF 1980 Act Fund Supplementation Indemnity Employers'
       1,456,633    1,543,392       1,459,920     1,545,249
       1140,893     1,164,769       1,143,671     1,166,101                                                            Non-Current
       315,740      378,623         316,249       379,148                                                                  Current
       1,456,633    1,543,392       1,459,920     1,545,249                                    Liability Claims Outstanding Gross
    105,984         113,269         106,849        113,756                                                             Margin Risk
    1,350,649       1,430,123       1,353,071      1,431,493
    53,437          59,694          54,931         60,331                            (discounted) Expenses Management Claims
    1,297,212       1,370,429       1,298,140      1,371,162
   (499,950)       (334,869)       (500,438)      (335,173)                                             Value Present to Discount
    1,797,162       1,705,298       1798,578       1,706,335                                                     Estimate Central
   $'Ooo           $'OOo           $'Ooo          $,000                                       Liability Claims Outstanding      (a)
   2008            2009            2008           2009
       COMMISSION INSURANCE             CONSOLIDATED                      LIABILITY CLAIMS OUTSTANDING 17.
                    STATEMENTS FINANCAL THE OF PART FORMING                                              I AN TO NOTES
2' I
'09 REPORT UAI. /\NN                                                                       A AUSTRALI ESTERN W OF    COMMISSION SUR.NCE
                                                                                                  run-off in are that Funds Denotes
  1,456,633       1,543,392        1,459,920       1,545,249                                                                       Total
                                   3,287           1,857                                         Reinsurance* Inwards - Corporation
  44,381          45,144           44,381          45,144                                               Fund* Insurance Government
  5,691           5,009             5,691          5,009                                   Fund Diseases) (Industrial Compensation
  1,326,520       1.402,910        1,326,520       1,402,910                                              Fund Insurance Party Third
  80,041          90,329            80,041         90,329
  16,854          29,788           16,854          29,788                                                            Act* EISF -
  63,187          60,541           63,187          60,541                       lnsurance* Liability and Compensation Workers' -
                                                                                             Fund General Commission Insurance
 $O00            $'OOO            $'OOO           $,000
 2008            2009             2008            2009
  COMMISSION INSURANCE                   CONSOLIDATED
            Fund: by below out set is receivable) recoveries other and reinsurance (excluding claims outstanding for liability The
                                                                             (discounted) Claims Outstanding for Liability           (d)
     15.8          15.9                                                                                                  -
                                                                                                  Reinsurance Inwards        Corporation
     12.1          16.8                                                                       Diseases Non-Asbestos-related
   20.4            20.4                                                                             Diseases Asbestos-related
                                                                                                                                -
                                                                                                                      Act: EISF
     25.0          25.0                                                                                                         -
                                                                                 Insurance Liability and Compensation Workers'
                                                                                              Fund General Commission Insurance
     16.8          16.8                                                                                                          -
                                                                                                                       Liability
     22.5          22.5                                                                                   Compensation Workers -
                                                                                                         Fund Insurance Government
     18.7          18.7                                                                    Fund Diseases) (Industrial Compensation
     7.0           7.0                                                                                    Fund Insurance Party Third
     %
     2008          2009                                                                                        Applied: Margin Risk
                                                                                             attitudes. social in changes and
 environments, legal and insurance general the quality, data underlying the techniques, modelling statistical and assumptions
 actuarial various to relating uncertainties potential account into taking estimated is sufficiency of probability 75% The
                                                                    rates. risk-free above returns asset or risk, asset for allowance no
 with but risk), inflation (including risk liability on solely based sufficiency of probability 75% a achieve to required is provision
 total The securities. interest fixed Government Commonwealth from yields on based rates risk-free using derived is estimate
 central the regime this Under 2002. June 30 from effective insurers private covering guidelines (APRA) Authority Regulation
 Prudential Australian the with accordance in margin risk a adopted have Corporation and Commission Insurance The
                                                                                            Margin: Risk Determining for Process
                                                                                                                   Margin Risk
                                                           (continued) LIABILITY CLAIMS OUTSTANDING 17.
                   STATEMENTS FiNANCIAL THE OF PART FIRMNG AND                                                       TI NOTES
i3
            OTES TO AND FORMING PA T OF THE FINANCAL STATEMENTS

      17. OUTSTANDING CLAIMS LIABILITY (continued)

      (e)      Outstanding Claims Liability by Funds                                                       Compensation
                                                                              Third Party               (Industrial Diseases)          Government             Insurance Commission
                                                                            Insurance Fund                          Fund             Insurance Fund                General Fund
      Insurance Commission                                                     2009        2008                   2009      2008       2009           2008         2009        2008
                                                           Notes              $'oOo           $,000           $000          $'000      $,000          $'ooO        $.000       $'Ooo

      The following are the liabilities for outstanding
      claims for each Fund;

      Central Estimate                                                  1,532,390        1,624,870           5,099          6,540     49,537      55,370        118,272     110,382
      Discount to Present Value                                          (271,690)        (429,940)         (1,835)        (2,827)   (15,819)    (22,228)                   (44,955)
                                                                                                                                                                (45,525)
                                                                        1,260,700        1,194930            3,264          3,713     33,718      33,142         72,747      65,427
      Claims Management Expenses (discounted)                              50,430           44,810           1,142         1,299      3,300       3,241           4,822       4,087
                                                                        1,311,130        1,239,740           4,406         5,012     37,018      36,383          77,569      69,514
      Risk Margin                                                          91,780           86,780             603           679      8,126       7,998          12,760      10,527
      Gross Outstanding Claims Liability                                1,402,910        1,326,520           5,009         5,691     45,144      44,381          90,329      80,041


     Current                                                 28           364,130         301,590              423           466      5,632       4,699           8,438       8,985
     Non-Current                                             28         1,038,780        1,024,930           4,586         5,225     39,512      39,682          81,891      71,056
                                                                        1,402,910        1,326,520           5,009         5.69 1    45,144      44,381          90,329      80,041

     The Insurance Commission General Fund includes the liabilities arising under the ElSE Act (Refer Note 17(b)) as follows;

                                                                                                                                                                  2009         2008
                                                                                                                                                                  $,000        $'OoO

                                                                                      Central Estimate                                                           42,891      23,885
                                                                                      Discount to present value                                                 (18,899)     (9,542)
                                                                                                                                                                 23,992      14,343
                                                                                      Claims Management Expenses (discounted)                                      921               -
                                                                                                                                                                 24,913      14,343
                                                                                      Risk Margin                                                                 4,875       2,511
                                                                                      Gross Outstanding Claims Liability                                         29,788      16,854


                                                                                      Current                                                                    2,477        2,045
                                                                                      Non-Current                                                               27,311       14,809
                                                                                                                                                                29,788       16,854




lee JRA N('F   ('OMMISSION OF WESTERN AUSTRAIJA                                                                                                                              ANNUAL REPORT 2009
REPO2OJ           ANNUAL                                                                       AUSTRALIA WS5TERN OF COMMISSION ANCE          INS
                                                                                                                                              86
O\\      /7                                                                                                                              TED D AU
                                                                                                                                           OAG 7
                                                                                                                                              -
                                                                                                               Corporation.
       the of liability claims outstanding the calculate to used assumptions and methodologies the for 3 and 2 Notes Refer
                                        3,287           1,857
                                        2,778           1,332                                                                Non-Current
                                        509             525                                                                      Current
                                        3,287           1,857                                        Liability Claims Outstanding Gross
                                        490             270                                             Margin Precautionary Additional
                                        375             217                                                                Margin Risk
                                        2,422           1,370
                                        1,494           637                                              Expenses Management Claims
                                        928             733
                                       (488)           (304)                                                   value present to Discount
                                        1,416           1,037                                                           Estimate Central
                                        $'Ooo          $,000
                                       2008            2009
                                                                                                  Reinsurance Inwards - Corporation
                                               million). $22.1 (2008: million $20.0 of claims law common asbestos-related Wittenoom the
       to relating liability net a produces This 9. Note Refer Receivable. Recoveries Other and Reinsurance in included is million)
       $22.1 (2008: million $20.0 of amount recoverable A claims. law common asbestos-related Wittenoom the for recoveries,
       future to prior liability, estimated the representing million) $44.3 (2008: million $40.0 of amount an includes liability above The
                                                                                                                below. detailed
       as liability, law common asbestos-related Wittenoom includes which Fund, this through settled is 1987 January 1 to prior
       Office Insurance Government State the by conducted insurance of classes to applicable claims outstanding for liability The
                                Insurance Liability Public and Compensation Workers' - Fund General Commission Insurance
                                         million). $3.8 (2008: million $3.2 of claims mining-related asbestos for liability net a produces
       This 9. Note Refer Receivable. Recoveries Other and Reinsurance in included is million) .4 $1 (2008: million $1.2 of amount
       recoverable A Wittenoom. at operations from arising recoveries, future to prior claims, compensation workers' related
       mining- asbestos of liability estimated the representing million), $5.2 (2008: million $4.4 of amount an includes liability The
                                                                                          Fund Diseases) (Industrial Compensation
                                                                (continued) LIABILITY CLAIMS OUTSTANDING 17.
                       STATEMENTS FINANCUAL THE OF PART FORMING AND TO NOTES
      J31
     009        REPOR ANNUAL                                                             AusTRALIA WESTERN OF COMMISSION JRANCE
                                                                                                                                            86
                                                                                                                                          AUDITED
-c                                                                                                                                        OAG'
       44,530            614           45,144            (i)1-(li)            2009 June 30 at Liability Claims Outstanding Total
       1,289             50            1,339               (ii)                     2009 June 30 at Liability Claims Outstanding
      (173)              (48)          (221)                                             Year During Payments/Recoveries Claim
       668               53             721                                   Statement Income the in Recognised Claims Incurred
      (9)                (1)           (10)                          Year During Incurred/Recoveries Claims Expected in Decrease
       677                54            731                                           Assumptions/Experience in Changes of Effect
       794               45            839                                              2008 July   1   at Liability Claims Outstanding
      $'OOO             $000           $000                                                                           Liability Public
      Net               Recoveries     Gross
                        Other and
                        Reinsurance
       43,241            564           43,805              (i)                     2009 June 30 at Liability Claims Outstanding
      (4,244)            (371)         (4,615)                                           Year During Payments/Recoveries Claim
       4,560             318            4,878                                 Statement Income the in Recognised Claims Incurred
      (46)                1            (45)                          Year During Incurred/Recoveries Claims Expected in Decrease
       4,606             317            4,923                                         Assumptions/Experience in Changes of Effect
       42,925            617           43,542                                           2008 July   1   at Liability Claims Outstanding
      $'OOO             $000           $000                                                                 Compensation Workers'
      Net               Recoveries     Gross                                                            Fund Insurance Government
                        Other and
                        Reinsurance
       3,805             1,204         5,009                                 2009 June 30 at Liability Claims Outstanding Total
      (554)                            (554)                                            Year During Payments/Recoveries Claim
       78                (206)         (128)                                 Statement Income the in Recognised Claims Incurred
       -                 -             -
                                                                     Year During Incurred/Recoveries Claims Expected in Increase
       78                (206)         (128)                                        Assumptions/Experience in Changes of Effect
           4,281          1,410            5,691                                        July2008    1   at Liability Claims Outstanding
      $'OOQ              $000          $'OOO                                          Fund Diseases) (Industrial Compensation
      Net                Recoveries    Gross
       1,307,796         95,114        1,402,910                             2009 June 30 at Liability Claims Outstanding Total
      (321,634)          (25,796)      (347,430)                                        Year During Payments/Recoveries Claim
       398,050            25,770        423,820                             Statement Income the in Recognised Claims Incurred
       410,350            28,040        438,390                      Year During Incurred/Recoveries Claims Expected in Increase
      (12,300)           (2,270)       (14,570)                                      Assumptions/Experience in Changes of Effect
       1,231,380          95,140        1326,520                                        2008 July   1   at Liability Claims Outstanding
       $'OOO             $'OOO         $'OOO                                                            Fund Insurance Party Third
      Net                Recoveries    Gross
                         Other and
                         Reinsurance
                                                   Liability Claims Outstanding Discounted in Movement of Reconciliation            (f)
                                                             (continued) LIABILITY CLAIMS OUTSTANDING 17.
                              STATEMENTS FINANCAL THE OF PART                           FORJNG              Ak\D TO NOTES
            I
            2 REPORl'   hAL ANN                                                              AUSTRALIA WESTERN OF COMMJSSION .NCE
'I)
                                                                                                                                                  86
                                                                                                                                                AUDITED
                                                                                                                                                  OAG
        23,373              184             23,557            (v)                      2009 June 30 at Liability Claims Outstanding
       (1,289)              18             (1,271)                                                 Costs Handling Claims of Removal
                            -
        88                                  88                                                                     Difference Timing
        24,574              166             24,740
       (454)               (4)             (458)                                                             Year During Payments Claim
        13,363              88              13,451                              Statement Income the in Recognised Claims Incurred
        10,170              64              10,234                       Year During Incurred/Recoveries Claims Expected in Increase
        3,193               24              3,217                                        Assumptions/Experience in Changes of Effect
        11,665              82              11,747                                          2008 July   1   at   Liability Claims Outstanding
       $000                $000            $000                                                                   Claims Asbestos-related
       Net                 Recoveries      Gross
                           Other and                                                                                                Act EISF
                           Reinsurance
        39,036              21,505          60,541         (iii)+(iv)    2009 June 30 at Liability Claims Outstanding Run-off Total
        1,628               41              1,669            (iv)                     2009 June 30 at Liability Claims Outstanding
        (821)                              (821)                                            Year During Payments/Recoveries Claim
        49                 (18)             31                                  Statement Income the in Recognised Claims Incurred
        -                   -
                                                                         Year During Incurred/Recoveries Claims Expected in Increase
        49                 (18)             31                                           Assumptions/Experience in Changes of Effect
        2,400               59              2,459                                           2008 July   1   at Liability Claims Outstanding
        $000                $'OOO          $000                                                                              Liability Public
        Net                Recoveries      Gross
                           Other and
                           Reinsurarice
        37,408              21,464          58,872           (iii)                    2009 June 30 at Liability Claims Outstanding
        (2,027)            (1,812)         (3,839)                                          Year During Payments/Recoveries Claim
        2,168              (185)            1,983                               Statement Income the in Recognised Claims Incurred
                                                                         Year During Incurred/Recoveries Claims Expected in Increase
        2,168              (185)            1,983                                        Assumptions/Experience in Changes of Effect
        37,267                  23,461      60,728                                          2008 July   1   at Liability Claims Outstanding
        $'OOO              $000            $,000                                                                  Compensation Workers
        Net                Recoveries      Gross                                                                      Liabilities Run-off
                           Other and
                           Reinsurance                                                        Fund General Commission Insurance
                                          (continued) Liability Claims Outstanding Discounted in Movement of Reconciliation               (f)
                                                                (continued) LIABILITY CLAIMS OUTSTANDING 17.
                                STATEMENTS           FANCIAL            THE OF PART FORMING AND                            10 NOTES
       Li    J
      ')O    1
'    REPORT   ANAL                                                              A   AUSTLI      WESTERN OF COMMISSION ANCE
                                                                                                                                  (AUDITED
                                                                                                                                   7OAG
1,850           7              1,857                                2009 June 30 at Liability Claims Outstanding Total
(72)            (20)          (92)                                              Year During Payments/Recoveries Claim
(1,313)         (25)          (1,338)                               Statement Income the in Recognised Claims Incurred
(131)           3             (128)                        Year During Incurred/Recoveries Claims Expected in Decrease
(1,182)         (28)          (1,210)                                      Assumptions/Experience in Changes of Effect
3,235           52             3,287                                           2008 July   1   at Liability Claims Outstanding
$000           $000            $,000                                                 Reinsurance Inwards Corporation
Net            Recoveries     Gross
               Other and
               Reinsurance
                                              +(v)i-(vi)
68,587          21,742         90,329                                          Liability Claims Outstanding Total ICGF
                                              (iii)+(iv)
 29,551         237            29,788         (v)(vi)      2009 June 30 at Liability Claims Outstanding Total Act EISF
6,178           53             6,231             (vi)                    2009 June 30 at Liability Claims Outstanding
(576)           8             (568)                                                   Costs Handling Claims of Removal
39              -              39                                                                     Difference Timing
 6,715           45            6,760
(836)           (9)           (845)                                                             Year During Payments Claim
1,737           10             1,747                                Statement Income the in Recognised Claims Incurred
670             5              675                          Year During Incurred/Recoveries Claims Expected in Increase
1067            5              1072                                         Assumptions/Experience in Changes of Effect
5,814           44             5,858                                          2008 July    1   at Liability Claims Outstanding
$'000          $000           $,000                                                        Claims Non-Asbestos-related
Net            Recoveries     Gross
               Other and                                                                                            Act EISF
               Reinsurance
                             (continued) Liability Claims Outstanding Discounted in Movement of Reconciliation              (f)
                                                  (continued) LIABILITY CLAIMS OUTSTANDING 17.
                    STATEMENTS FINANCIAL THE OF PART RMING                                 I    F   AND TO NOTES
C

m u'         NOTES TO AND FORIflNG PART OF THE FINANCIAL STATEMENTS
0
            17. OUTSTANDING CLAIMS LIABILITY (continued)

            (g)   Claims Development Tables

            Third Path Insurance Fund

            The following tables show the development of gross and net undiscounted outstanding claims relative to the ultimate expected claims for the ten most recent years:

            Gross Claims Development Table

            Accident Year                                        2000          2001         2002           2003         2004          2005         2006          2007            2008       2009         Total
            Estimated Ultimate Gross Claims Cost:                $,000        $000         $00o           $'000        $000          $'Ooo         $,000         $000            $'OOO      $000         $000
            At End of Crash Year                                                        330,267        329,489      349,864       364,043      359,544       391336        423,400       402,900
            OneYearLater                                                   306,701      298,977        338,860      331,040       341,742      374,159       410,204       368,186
            Two Years Later                                  279,336       287,766      300,390        314,117      322,762       347,210      370,038       363,308
            Three Years Later                                266,252       295,851      294,932        312,198      342,168       343,604      334,609
            Four Years Later                                 260,653       282,422      329,095        322,713      328,902       320,029
            Five Years Later                                 259,802       291,546      324,637        328,712      319,187
            Six Years Later                                  265,488       294,294      346,245        325,750
            Seven Years Later                                261,339       289,041      343,513
            Eight Years Later                                258,515       297,130
            Nine Years Later                                 261,969
            Current Estimate of Cumulative Claims Costs      261,969       297130       343,513        325,750      319,187       320,029       334,609      363,308       368,186       402,900     3,336,581
            Cumulative Payments                              (232,2711    (263,684)    (282,019)      (264,196)    (238,382)     (212,211)     (184,093)    (143,542)      (80,423)      (46,858)   (1,947,679)
            Outstanding Claims Undiscounted                   29,698        33,446       61,494         61,554       80,805       107,818      150,516       219,766       287,763       356,042     1,388,902

            Discount (on Crash Years 2000 and Later>                                                                                                                                                 (231 340)
            Claims Management Expenses (on Crash Years 2000 and Later)                                                                                                                                 46,816
            Claims 1999 and Prior (Discounted)                                                                                                                                                        105,966
            Third Party Recoveries (Gross Amounts in Table are Net of Third Party Recoveries>                                                                                                             786
            Risk Margin                                                                                                                                                                                91,780
            Gross Outstanding Claims per Funds Balance Sheet (Refer Note 28)                                                                                                                        1,402,910




       INSURANCE COMMISSION OF WESTERN AUSTRALIA                                                                                                                                                        ANNUAL REPORT 2009
       NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

      17. OUTSTANDING CLAIMS LIABILITY (continued)
      (g)      Claims Development Tables (continued)

      Net Claims Development Table

      Accident Year                                         2000       2001         2002       2003        2004        2005        2006        2007       2008       2009          Total
      Estimated Ultimate Net Claims Cost:                  $,000       $'oOo       $,000      $'OOO        $'OOO      $'OOO        $'oOo      $.000       $'OOo      $000         $'OOO

      At End of Crash Year                                                     301463      300671      325,605     342,610     338,380     362,973     397,847    378,224
      One Year Later                                               280,074     272,774     309,094     299,805     321549      351266      379,718     345,459
      Two Years Later                                  277,891     262,555     273,872     277,967     289,521     326,070     347,356     336,200
      Three Years Later                                264,960     269,780     268,651     273,614     310,245     322,653     314,274
      Four Years Later                                 259,397     257,361     298,065     286,954     306,377     300,429
      Five Years Later                                 258,536     265,612     295,270     285,292     297,083
      Six Years Later                                  264,180     268,060     315,159     283,695
      Seven Years Later                                260,193     263,249     312,621
      Eight Years Later                                257,395     270,610
      Nine Years Later                                 260,820
      Current Estimate of Cumulative Claims Costs       260,820     270,610    312,621      283,695     297,083     300,429     314,274     336,200    345,459    378,224     3,099,415
      Cumulative Payments                              (231,235)   (240,088)   (256,502)   (237,023)   (221,711)   (199,044)   (172,738)   (134,585)   (75,259)   (43,913)   (1,812,098)
      Outstanding Claims Undiscounted                    29,585      30,522      56,119      46,672      75,372    101,385     141,536      201,615    270,200    334,311    1,287,317
      Discount (on Crash Years 2000 and Later)                                                                                                                                (214,539)
      Claims Management Expenses (on Crash Years 2000 and Later)                                                                                                                43,910
      Claims 1999 and Prior (Discounted)                                                                                                                                       105,551
      Risk Margin                                                                                                                                                               85,557
     Total Outstanding Claims Net of Reinsurance and Other Recoveries                                                                                                        1,307,796




N'O rn AC4F   rnwMlssrne (W WPSTFRC   AflSTSATJA                                                                                                                                 ANNUAL REPORT 2009
 O9     REPORT ANNUAL                                                                        AUSTLIA     WESTERN OF COMMISSION     ftACC     86,N
                                                                                                                                            AUDITED
                                                                                                                                              OAG
      43,241         43,805                                                            Claims Outstanding Compensation Workers
      7,942          7,942                                                                                              Margin Risk
      3209           3,209                                                                               Expenses Management Claims
     (15,428)       (15,613)                                                                                               Discount
      47,518         48,267                                                                          Undiscounted Claims Outstanding
     (865,497)      (939,983)                                                                                   Payments Cumulative
      913,015        988,250                                                              Costs Claims Cumulative of Estimate Current
      913,015        988,250                              2009
      914927         989,930                              2008
      920,850        995,788                              2007
      930,953        1,005,894                            2006
      939,398        1,014,482                            2005
     $'OOO          $,000                                                                  June: 30 at Cost Claims Ultimate Estimated
     Net            Gross
                                                                                                              Compensation Workers
                                                                                      insurance. Liability and Compensation Workers'
     for than other fund the against claims remaining no are There years. five past the over costs claim developing list below
     tables the Consequently, appropriate. not is years accident to referenced table a of provision that considered is it this of view In
     insurance. liability of nature the and diseases asbestos-related with associated period latency the to due also is claims these of
     settlement to term expected the of nature long-term The 1996. July 1 since run-off in been has and closed now has Fund This
                                                                                                         Fund Insurance Government
      3,805          5,009                                          28) Note (Refer Sheet Balance Funds per Claims Outstanding
      599            603                                                                                               Margin Risk
      1,135          1,142                                                                              Expenses Management Claims
     (1,141)        (1,835)                                                                                               Discount
      3,212          5,099                                                                          Undiscounted Claims Outstanding
     (19,179)       (27,296)                                                                                   Payments Cumulative
      22,391         32,395                                                              Costs Claims Cumulative of Estimate Current
      22,391         32,395                              2009
      22,714         33,278                              2008
      23,179         34,263                              2007
      22,843         33,761                              2006
      22,829         33,610                              2005
     $000           $,000                                                                  June: 30 at Cost Claims Ultimate Estimated
     Net            Gross
                years. five past the over costs claim developing lists below table the Consequently appropriate. not is years
                                                                                                                              accident
     to referenced table a of provision that considered is it this of view In period. policy initial the after years many developing
     costs claims in results explained, previously as claims, these of settlement to term expected the of nature long-term The
                                                                                          Fund Diseases) (Industrial Compensation
                                                                                     (continued) Tables Development Claims           (g)
                                                             (continued) LIABILITY CLAIMS OUTSTANDING 17.
                       STATEMENTS FNANCAL THE OF PART FORMING AND TO NOTES
74
      REPORT   AAL                                                                       AUSTRALIA WESTERN Of COMMISSION ANCE
                                                                                                                                         86
                                                                                                                                       AUDITED
                                                                                                                                        (OAG
 37,408         58,872                  (i)                                        Claims Outstanding Compensation Workers'
 7,482           7,552                                                                                              Margin Risk
 3,765           3,802                                                                              Expenses Management Claims
(14,067)        (25,940)                                                                                              Discount
40,228          73,458                                                                          Undiscounted Claims Outstanding
(393,670)       (479,213)                                                                                  Payments Cumulative
 433,898         552,671                                                             Costs Claims Cumulative of Estimate Current
433,898         552,671                              2009
433,247         557.402                              2008
438,903         560,822                              2007
431,857         551,936                              2006
436,556         558,405                              2005
$000            $000                                                                   June: 30 at Cost Claims Ultimate Estimated
Net             Gross
                                                                                                          Compensation Workers'
                                                                                                                       insurance. of
class single a as reported claims Liability Public potential for, values and of, number immaterial an include run-off in claims The
        years. five past the over costs claim developing list below tables the Consequently appropriate. not is years accident to
referenced table a of provision that considered is it this, of view In insurance. liability public of nature the and diseases related
asbestos- with associated period latency the to due is claims these of settlement to term expected the of nature long-term The
                                                                                                                   Claims Run-off
                                                                                            insurers. failed other and Group
Insurance HIH the to relating specifically Act EISF the with accordance in settled be to claims Compensation Workers'              -
                           and 1986; January   1
                                             to prior claims Liability Public and Compensation Workers' for claims Run-off         -
                                                            portfolios: claim two of administration the for responsible is fund This
                                                                                          Fund General Commission Insurance
44,530          45,144                              28) Note (Refer Sheet Balance Funds' per Claims Outstanding GIF Total
1,289            1,339                                                                       Claims Outstanding Liability Public
185             185                                                                                                 Margin Risk
 91              91                                                                                 Expenses Management Claims
(196)           (206)                                                                                                 Discount
1,209           1,269                                                                           Undiscounted Claims Outstanding
(18,257)        (33,210)                                                                                   Payments Cumulative
19466            34,479                                                              Costs Claims Cumulative of Estimate Current
19,466          34,479                               2009
18,837          33,796                               2008
19,047          35,137                               2007
18,703          34,623                               2006
18,599          35,500                               2005
$000            $'OOO                                                                  June: 30 at Cost Claims Ultimate Estimated
Net             Gross
                                                                                                                   Liability Public
                                                                                 (continued) Tables Development Claims           (g)
                                                        (continued) LIABILITY CLAIMS OUTSTANDING 17.
                  STATEMENTS NANCIAL                          THE OF PART FORMING AND TO NOTES
)RI20 REP( ANI'IUAL                                                                    AUSTRALIA WESTERN OF COMMISSION NCR           INS'U
                                                                                                                                        86
                                                                                                                                 AUDITED
                                                                                                                                   OAG
                                    years. accident prior all from aggregated now is data and reached been has calculation claim
data actuarial the of limit the as shown not is claims disease non-asbestos-related Act EISF for table development claim A
               dramatically. quite vary to cost claims expected ultimate the caused have which difficulties data significant
very been have there and 2004 June 30 since assessed separately been only has liability disease asbestos-related this
                                                          and ago; years ten than more occurring events for are claims all
                         as: claims disease asbestos-related Act ElSE the for produced been not has table development claim A
 68,587         90,329                         28) Note (Refer Sheet Balance Funds per as Claims Outstanding ICGF Total
 6,178          6,231                                                                    Claims Non-Asbestos-Related Act ElSE
 23,373         23,557                                                                        Claims Asbestos-Related Act EISF
 39,036         60,541              (i)+(ii)                                          Claims Outstanding Run-off ICGF Total
 1,628          1,669                 (ii)                                                 Claims Outstanding Liability Public
 326            334                                                                                               Margin Risk
 98             99                                                                                Expenses Management Claims
(673)          (686)                                                                                                Discount
 1,877          1,922                                                                          Undiscounted Claims Outstanding
(1,975)        (1,975)                                                                                   Payments Cumulative
 3,852          3,897                                                              Costs Claims Cumulative of Estimate Current
 3,852          3,897                               2009
 4,151          4,224                               2008
 4,097          4,169                               2007
 4,326          4,408                               2006
 4,314          4,395                               2005
$000           $000                                                                  June: 30 at Cost Claims Ultimate Estimated
Net            Gross
                                                                                                                 Liability Public
                                                                               (continued) Tables Developrrent Claims          (g)
                                                       (continued) LIABILITY CLAIMS OUTSTANDING 17.
                  STATEMENTS IRNANCIAL THE OF PART                                    FORMG            AND TO NOTES
14
                 REi'OR1p    ANNUAL                                                                     AUSTRALIA \vEsrERN OF COMMISSION i\NCF
)
             I                                                                                                             Corporation. [ha
                 or Fund General Commission Insurance the Fund, Insurance Government the to applicable not is Liability Premium Unearned
                                                                                       Fund. this in Liability Premium Unearned no was there 2009
                 June 30 at hence period three-year a covering 2006 July     1   on policies issued Fund Diseases) (Industrial Compensation The
                 (150,231)      (60)             (150,171)                                      Year the of End at Liability Premium Unearned
                  139,642        30               139,612                                        Periods Previous in Written PremiLims of Earning
                                 -
                 (150,171)                       (150,171)                                Period the in Written Contracts on Premiums of Deferral
                 (139,702)      (90)             (139,612)                                         Year the of Start at Liability Premium Unearned
                 Total        Fund         Fund                                                                                        Year Prior
                              Diseases)    Insurance
                              (Industrial  Party Third
                              Compensation
                       ($000) 2008 CONSOLIDATED
                 (162,085)                       (162,085)                                      Year the of End at Liability Premium Unearned
                  150,231        60               150,171                                        Periods Previous in Written Premiums of Earning
                 (162,085)                       (162,085)                                Period the in Written Contracts on Premiums of Deferral
                 (150,231)      (60)             (150,171)                                         Year the of Start at Liability Premium Unearned
                 Total          Fund         Fund                                                                                   Year Current
                                Diseases)    Insurance
                                (Industrial  Party Third
                                Compensation
                         ($000) 2009 CONSOLIDATED                                           LIABILITY PREMIUM UNEARNED 18.
                                                                                   provision. additional an require which claims outstanding
                 no currently are there as million) $0.2 (2008: 2009 in Scheme Indemnity Professional Minet the for added been has
                 margin precautionary No 174%. of ratio loss ultimate an on based ) million $0.3 (2008: million $0.3 is 2009 in portfolio
                 Proportional Casualty Australian the for margin precautionary The volatility. significant shown historically has which
                 portfolio the of segment Proportional Casualty Australian the for added been also has margin precautionary additional An
                 1,850           1,857                                                         Liability Claims Outstanding Corporation Total
                  487            487                                                                                             Margin* Risk
                  637            637                                                                              Expenses Management Claims
                 (299)          (304)                                                                                               Discount
                 1,025           1,037                                                                        Undiscounted Claims Outstanding
                 (34,561)       (46870)                                                                                   Payments Cumulative
                  35,586         47,907                                                             Costs Claims Cumulative of Estimate Current
                 35.586          47,907                             2009
                 2,776           44,342                             2008
                 32,988          44,720                             2007
                 33,305          45,038                             2006
                 33,781          45,514                             2005
                 $000           5'OOO                                                                 June: 30 at Cost Claims Ultimate Estimated
                 Net            Gross
                                               years. five past the over costs claim developing lists below table the Consequently, appropriate.
                 not is years accident to referenced table a of provision that considered is it this of view In insurance. liability of nature
                 the and claims reinsurance with associated period latency the to due also is claims these of settlement to term expected the
                 of nature long-term The 1992. August since run-off in been has and business insurance writing ceased has Corporation The
                                                                                                           Reinsurance Inwards - Corporation
                                                                                                (continued) Tables Development Claims          (g)
                                                                       (continued) LIABILITY CLAIMS OUTSTANDING 17.
                                  STATEMENTS FINANCIAL THE OF                               PR1 FOMING                 AND TO NOTES
        Lj   J
    r        I
         2b REPORT   ANNUAL                                                                AUSTRALIA FERN WES OF ISSR)N COMM                  INSI)
                                                                                                                                              86
                                                                                                                                   AUDTED)
                                                                                                                                    OAG\              7
                                                                                       Recoveries. Other and Reinsurance
     related any less Liability Risk Unexpired the in movement gross the represents Risk Unexpired in Movement Net The                  (I)
                                                       premiums. renewing not and run-off in are Funds the as Corporation the
     or Fund General Commission Insurance the Fund, Insurance Government the to applicable not is Liability Premium Unearned
     date. balance at Liability Premium Unearned an carry which Funds those in occur only can Liability Risk Unexpired An
                                                                         portfolios. Fund Diseases) (Industrial Compensation
     the and Fund Insurance Party Third the of nature different the to due aggregated not is Liability Risk Unexpired The
        required. was Liability Risk Unexpired or Test Adequacy Liability no hence and 2009 June 30 at Liability Premium Unearned
     no had period, three-year a covering policies issues which Fund Diseases) (Industrial Compensation The million). $10.7
     (2008: Liability Risk Unexpired million $Nil a in resulted which surplus net a demonstrated Fund Insurance Party Third The
                                                                                                                                   Fund.
     Diseases) (Industrial Compensation the and Fund Insurance Party Third the for performed were Tests Adequacy Liability
     25                                (12,284)          (11,245)                                        (Deficiency)/Surplus Gross
                                       (10,700)          (11,600)                  Claims Future for Flows Cash Future Expected
                                                                                   of Value Present of Element Reinsurance Less:
     25                                (1,584)            355                                               Surplus/(Deficiency) Net
     35                                 148,300           157,800
                                       (10700)           (11,600)                                                 Claims Future on
                                                                                   Recoveries Other and Reinsurance from Arising
                                                                                    Inflows Cash Future Expected of Value Present
         8                              13,300            14,100                                                       Margin Risk
         27                             145,700           155,300                    Claims Future from Arising Flows Cash Future
                                                                                     Expected of Value Present of Estimate Central
         60                             146,716           158,155
                                       (3,455)           (3,930)                                 Costs Acquisition Deferred Related
         60                             150,171           162,085                                       Liability Premium Unearned
                                                                                    Test Adequacy Liability Premium Unearned
                                        396                                                                         Statement
                                                                                     Income the in Recognised Deficiency Total
                                        1,584                              14          Costs Acquisition Deferred of Write-down
                                       (1,188)                             (i)                 Risk Unexpired in Movement Net
                                       (700)              10,700                           Liability Risk Unexpired on Recoveries
                                                                                    Other and Reinsurance in Decrease/(lncrease)
                                       (488)             (10,700)                       Liability Risk Unexpired in Decrease Gross
                                                                                                             Statement Income
                                                                                     the in Recognised Deficiency in Movement
                                       (10,700)           -                           Year the of End at Liability Risk Unexpired
                                        11,188            10,700                                                       Periods Previous
                                                                                   in Recorded Liability Risk Unexpired of Release
                                       (10,700)                                                                             Period the in
                                                                                  Liability Risk Unexpired Additional of Recognition
                                       (11,188)          (10,700)                         Year the of Start at Liability Risk Unexpired
                                                                                                            Liability Risk Unexpired
     $,000               $'OOO         $,000             $,000            Notes
     2008             2009             2008              2009
             Fund Diseases)                       Fund Insurance
        (Industrial Compensation                   Party Third
                                                                                    LIABILITY RISK UNEXPIRED 19.
                         STATEMENTS LNANCAL THE OF PART FORMNG AND S T NOTES
f   14
         REPORT ANNUAL                                                               AUSTRALIA WE.STERN OF COMMISSION CE            INSU
                                                                                                                          1         86
                                                                                                                          AUDITED\
7mths 4yrs         9mths 4yrs     lmths 4yrs     9mths 4yrs                  Settlement to Term Expected Average \Neighted
 6.7                4.5           6.7             4.5                                 (%) Rates Discount Average Weighted
 3.5                3.8           3.5             3.8                                                 (%) Benefits Employee
                                                                              Annual in Increase of Rates Average Weighted
                                                                                                         Leave Service Long
                                               values: present measuring in adopted were assumptions following The values.
present their at measured are superannuation and leave service long non-current for amounts the (bb), 1 Note in explained As
 13,927             15,638        13,927          15,638                                  Liabilities Benefit Employee Total
 9,965              11,212        9,965           11,212             20                                    Non-Current Total
 8,468              9,170         8,468           9,170                                       Contributions Superannuation
 1,497              2,042         1,497           2,042                                                  Leave Service Long
                                                                                                                   Provisions
                                                                                                                    Non-Current
 3,962              4,426         3,962           4,426                                                            Current Total
 151                251            151            251               16
 9                  16            9               16                               Super GESB   -              -
                                                                                                    State West State Gold
                                                                                                    Superannuation: Accrued
 7                  12            7               12                                                      Tax Payroll Accrued
 135                223            135            223                                                       Salaries Accrued
                                                                                                                      Payables
 3,811              4,175          3,811         4,175              20
 1,113              1,137         1,113           1,137             21(h)                     Contrihulions Superannuation
 769                822           769             822                                                   Leave Service Long
 1,929              2,216         1,929           2,216                                                      Leave Annual
                                                                                                                  Provisions
                                                                                                                        Current
                                                                            LIABILITIES BENEFIT EMPLOYEE
 6. Note Refer Expenses). Administration and Underwriting (within Benefits Employee under included is expense associated
The here. included is on-costs such for liability The premiums. compensation workers' and tax payroll superannuation,
including on-costs employment of payment the to rise gives liabilities leave service long and annual of settlement The
                                                                                                                              (i)
 10,071             11,358         10,071        11,358
 106                146           106             146               (I)               Benefits Employee to relating On-Costs
 9,965              11,212        9,965          11,212             21                                   Benefits Employee
                                                                                                                   Non-Current
 3,947              5,771         3,947           5,771
 64                 81            64              81                                                                   Sundry
(120)               1,297         (120)          1,297                                                            Investments
 192                218            192           218                (i)               Benefits Employee to relating On-Costs
 3,811              4,175          3,811         4,175              21                                   Benefits Employee
                                                                                                                        Current
$,000              $'Ooo          $'OOO          $,000             Notes
2008               2009           2008       2009
     COMMISSION INSURANCE              CONSOLIDATED                                                    PROVISIONS 20.
                   STATEMENTS FNANCDAL THE OF PARI FORMNG AND                                                10 NOTES
14
\73 ftEIN)RTQ9 ANN[JAL                                                                     AUSTRALIA WESTERN uF COMMISSION       Si\NCE
         ((
                                                                                                                                   AUDITED\
                                                                                                                                     (OAG\
  164                 597           (276)             799                                                 Expense Superannuation
 (65)                 357           (663)             440                                                    Losses/(Gains) Actuarial
  229                 240            387              359                                                               cost Interest
                                                                                 Statement Income in Recognised Expense (d)
  3,803               4,400          5,778            5,907                                                                   Liability
                                                                                                    Cost Service Past Unrecognised
  3,803               4,400          5,778            5,907                                                                   Deficit
                                                                                                                   Assets Value Fair
  3,803               4,400          5,778            5,907                                               Obligation Benefit Defined
                                             Sheet Balance the in Recognised Liabilities and Assets the of Reconciliation           (c)
                                                                                                                                  Year
                                                                                   the of End the at Assets Scheme of Value Fair
 (306)                              (700)            (670)                                                                Paid Benefits
  306                                700              670                                                     ContribLitions Employer
                                     -
                                                                                    Year the of Start at Assets Scheme of value Fair
                                                                         Assets Scheme of Value Fair the of Reconciliation          (h)
                                                                                                          paid. benefits the meet
 to required, as contributes, employer The Assets. no are there that such unfunded, wholly are obligations benefit defined These
  3,803               4,400          5,778            5,907                                                   Year the of End at
                                                                                    Obligations Benefit Defined of Value Present
 (306)                              (700)            (670)                                                          Paid Benefits
 (65)                 357           (663)             440                                                Losses/(Gains) Actuarial
  229                 240            387              359                                                            Cost Interest
  3,945               3,803          6,754            5,778                                                      Year the of Start
                                                                                    at Obligations Benefit Defined of Value Present
 $'OOO               $'OOO          $'OOO            $,000
 2008                2009           2008            2009
        State Gold Pro-transfer              Scheme Pension
                                                    Obligation Benefit Defined the of Value Present the of Reconciliation          (a)
                   occur. they which in year the in Statement Income the in immediately
                                                                                        recognised are losses and gains Actuarial
                                                    only. benefits employer-financed the of respect in are disclosLires following The
                       employment. sector public leaving after period deferral any during and employment their during indexed and
 employment their during salary their to related is which invalidity or death retirement, on benefit sum lump a receive members
 the benefit transferred their of respect In Super. State Gold to transferred have members Scheme Pension former Some
           benefit. sum lump a to commuted be cannot employer-financed, fully is which benefit, pension the of share Government
 State The share. Fund the from arising pension any of indexation with associated cost the bear not does Commission Insurance
 The benefit. sum lump a to commuted he may earnings, investment plus contributions member's the on based is which
 benefit, pension the of share Fund The invalidity. or death retirement, on benefits pension receive members Scheme Pension
                                                                                                               Information Scheme
                                                                                               Scheme Pension Superannuation:
                                                              (continued) LIABILITIES           BENEFIT EMPLOYEE                 21.
                      STATEMENTS ANCAL                         F THE OF PART FORMING AND TO NOTES
142
  O9     REPORT ANNUAL                                                                  AUSTRALIA WESTERN OF       coMMrssloN     E     INSURi
                                                                                                                                            86
                                                                                                                                  AUDITED
                                                                                                                                    OAG
                                   1,137
                                    455                                                            State Gold Pre-transfer
                                    682                                                                   Scheme Pension
                                   $,000                      2010: June 30 ended year the for contributions employer Expected
                                                                                                        Contributions Expected
                                   Schemes. the for valuation actuarial last the at used those on based are rates) retirement and
mortality (e.g. used rates decrement The date. relevant the at rate Bond Government 10-year the on based is rate discount The
2.50%              2.50%           2.50%                                                        Rate Increase Pension Expected
4.50%              4.50%           4.50%                                                         Rate Increase Salary Expected
6.06%              6.64%           5.34%                                                             (Pensioners) Rate Discount
6.06%              6.64%           5.34%                                                        Members) (Active Rate Discount
2007               2008            2009
                                                                                   Used Assumptions Actuarial Principal               (g)
                                                assumptions). mortality pensioner in changes and rate bond the in movements (e.g.
assumptions in changes the of effect the excludes and entitlements) unit movements, membership (e.g. experience Scheme's
the from arising liabilities the in change a to due loss actuarial the represents liabilities Scheme for adjustment experience The
 156               25                                                                               -
                                    2               516                        Liabilities Scheme       Loss Adjustments Experience
 3,803             4,400            5,778          5,907                                                          Scheme in Deficit
                                                                                                   Assets Scheme of value Fair
 3,803             4,400            5,778          5,907                             Obligation Benefit Defined of Value Present
$'OOO              $000            $00o            $000
2008             2009              2008            2009                                                  Information Historical       (f)
    State Gold Pre-transfer                 Scheme Pension
                                                                                        assets Scheme on return actual No
                                                                                      assets Scheme o return expected No
                                                                                           employer the by used assets No
                                                                                      assets Scheme of allocation asset No
                                                                                            assets Scheme of value fair No
                                                                  is: there Hence, benefits. transferred the support to Scheme
Pension the in assets no and benefit the of share Government State the support to Scheme Pension the in assets no are There
                                                                                                               Assets Scheme
                                                           (continued) LIABILITIES BENEFIT EMPLOYEE 21.
                   STATEMENTS FINANCAL THE OF PART FORMING AND TO NOTES
i 11
    2 REPORI,   ANNUAL                                                                  AUSTRALIA WESTERN OF COMMIS5LON        !NSANCE
                                                                                                                                  AUDITED\
                                                                                                                                      \\ (OAG
                                                                                                                                         -- --
                                                                            Commission. Insurance the to relate amounts
 No Corporation. the to solely relate 2008 and 2009 both for Payables and Receivables for above disclosed amounts The
                   876           528                                                                              Payables Total
                   670           366
                   555           328                                                                        dollars States United
                   109           35                                                                sterling pounds British Great
                   6             3                                                                              dollars Canadian
                                                                                                                       Non-current
                   206           162
                   187           156                                                                       dollars States United
                   18            6                                                                 sterling pounds British Great
                                                                                                               dollars Canadian
                                                                                                                           Current
                                                                                                                           Payables
                   2             2                                                                             Receivables Total
                   2             2                                                                         dollars States United
                                                                                                                      Non-current
                                                                                                                    Receivables
                  $000           $,000                                         equivalent) dollars (Australian
                  2008           2009                        CURRENCIES FOREIGN IN DENOMINATED
                         CONSOLIDATED                          PAYABLE AND RECEIVABLE AMOUNTS 23.
                                                   terms. varying of are leases These properties. office district business central
 and centres shopping its for tenants with leases operating numerous has Commission Insurance The Commission. Insurance
 the by owned properties for leases operating non-cancellable under payments lease minimum future shows note This
                          leases. operating non-cancellable under payments lease minimum future represent amounts above The
  309,045          324,529       309,045        324,529
   160,596         145,150       160,596        145,150                                                     Years 5 than Greater
  116,659         140,968        116,659       140,968                                                                Years 5 - 1
   31,790          38,411        31,790         38,411                                                          Year   1
                                                                                                                       than Less
  2008            2009           2008          2009
  COMMISSION INSURANCE                   CONSOLIDATED                             INCOME LEASE PROPERTY 22.
                       STATEMENTS FNANCAL THE OF PART FORUNG AND TO NOTES
J1)
OO9   REI'OR ANNUAL                                                                    AUSTRALIA WESTERN OF COMMISSiON .\i'CF           NS
                                                                                                                                    AUDiTED
                                                                                                                                      OAG
                                          restriction. without entity economic the to available is above detailed Cash The        (i)
  02095    1    74,933          104,931         77,985            (i)
  105,824        78,775      105,824            78,775            10                                                 -
                                                                                 Assets Equivalent Cash and Cash Investments
 (3,729)        (3,842)     (3,729)            (3,842)                                                         Overdraft Bank -
  -
                             2,836              3,052                                             Equivalents Cash and Cash -
                                                                            follows: as Sheet Balance the in items related the to
                                                                             reconciled is Statement Flow Cash the in shown as
                                                                              year the of end the at Equivalents Cash and Cash
                                                                                                        Cash of Reconciliation
  204,047       163,065      204540             163,281                             Activities Operating From Flow Cash Net
 (76,677)       (88,442)    (76,677)           (88,442)                                     Liabilities Tax Deferred Non-Current
 (940)           1,287      (940)               1,287                                                      Provisions Non-Current
  44,295         23,876      43,625             22,430                                Liability Claims Outstanding Non-Current
                -                              -
 (3)                        (3)                                                                             Psyables Non-Current
  84             3,923       84                 3,923                                                      Liabilities Other Current
  397            407         397                407                                                              Provisions Current
 (488)          (10,700)    (488)              (10,700)                                          Liability Risk Unexpired Current
  10,529         11,854      10,529             11,854                                      Liability Premium Unearned Current
 (33,576)        62,883     (33,678)            62,899                                      Liability Claims Outstanding Current
  41,774        (53,014)     41,774            (53,014)                                                       Payable Tax Current
  5,162         (886)           5,191          (1,092)                                                             Payables Current
                                                                                             Liabilities in Increase/(Decrease)
  -             -
                            (1)                317                                            Assets Tax Deferred Non-Current
  339            232         339               232                                                   Assets Non-Current Other
  6,548          44,064      6,574             44,104                                                 Receivables Non-CLirrent
  122           (871)        122               (871)                                                        OtherCurrentAssets
 (1,871)        (2,059)     (1,871)            (2,059)                                       Costs Acquisition Deferred Current
                (8,064)                        (8,064)                                                 Receivable Tax Current
  2,750          3,295       2,734              3,297                                                      Receivables Current
                                                                                                Assets in Decrease/(Increase)
 (16,694)       6,674       (16,694)           6,674                    Revaluation Asset on Tax Income Deferred for Provision
                                                                                     Equity in Directly Recognised Amounts
  85             102         85                102                                                                          Other
                            -                  -
 (1,227)        (1,468)                                                               Liabilities Net Corporation's for Indemnity
  256,014        319,547     256,014            319,547                                  Investments of Value Fair in Decrease
 (8,609)        (886)       (8,609)            (886)                                      Investments Gain: Exchange Foreign
 (70)           (455)       (70)               (450)                                                  Receivables of Impairment
  10,213        12.623       10,213            12,623                                              Amortisation and Depreciation
                                                                                                                Items Non-Cash
 (34,110)       (160,837)   (34,110)          (160,837)                            Benefit Equivalent Tax Income After Loss
                                                                                                       Activites: Operating
                                                                                  From Flow Cash Net to Benefit Equivalent
                                                                                    Tax Income After Loss of Reconciliation
 $'OOo          $'OoO       $'OoO             $,000             Notes
 2008           2009        2008          2009
  COMMISSION INSURANCE              CONSOLIDATED
                                                           STATEMENT FLOW CASH THE TO NOTES 24.
                STATEMENTS FANCIAL THE OF PART FORMUNG AND TO NOTES
/       REPOR5tU9 ANNUAL                                                                          AUSTRALtA WESERN OF COMMISSiON JRANCE          '
                                                                                                                                                     86
                                                                                                                                                AUDITED
         (                                                                                                                                        OAG
                                       Commission. Insurance the of Fund General Commission Insurance the within held are Futures All
                                                                                                                                      Value.
        Fair their to different materially be to considered not are above shown Amounts Principal Notional The holdings. cash with
        futures the replace effectively could Commission Insurance the date, balance at exercised were contracts futures all If cash.
        of amount equal an by backed is futures equity and rate interest above the of exposure) (effective Amount Principal Notional The
                                        1,865          8,499                                             Asset of Amount Principal Notional
                                                                                                                          Futures Equity
                                       6.65%          4.90%                                                       Price Average Weighted
                                        51,194         49,650                                           Asset of Amount Principal Notional
                                                                                                                    Futures Rate Interest
                                                                                                                                year 1 to Up
                                                                                   are: contracts outstanding of details the date balance At
                                       $'000          $,000
                                       2008           2009
                                               CONSOLIDATED                                                                   Futures     (b)
          portfolio. equity underlying the of nature the on depending 100% and 50% between varies hedge currency the of level economic
        The exposure. portfolio equity overseas with associated risk currency the manage to contracts exchange foreign forward
        into enter to Manager Investment an appointed has Commission Insurance The decisions. allocation asset implementing
        of method effective and efficient an as and costs transaction reduced achieve to used been mainly have They extent.
         minimal a to used been generally have derivatives that shows Managers Investment external the with date to experience The
                 security. underlying the or cash by matched were positions derivative Commissions Insurance the of all date, balance At
        product. derivative the of value dollar equivalent the determine to utilised is values, market current at valued security, underlying
        the of value face The liability. potential any cover to held is security physical underlying the or cash created, are positions
        derivative whenever Therefore, incurred. risk minimise or hedge economically to used are instruments Derivative portfolio.
        investment the leverage to permitted Managers Investment are nor manner, speculative a in utilised not are Derivatives
                                                                                          strategy. investment Commissions Insurance
        the with line in portfolio investment the structLlre and manage to and markets financial in flexibility allow and to access gain
        to order in derivatives utilise may Managers Investment external Commission's Insurance The security. investment underlying
        an of, value the in changes or of, value the from derived is existence whose contract a is instrument financial derivative A
                                                                     Undertaken are Transactions Derivative Which for Purpose             (a)
                                                                                              INSTRUMENTS FINANCIAL 25.
                            STATEMENTS FINANCIAL THE OF PART FIRMNG AND TO NOTES
    2    :1
   REPORT2 ANNUAL                                                                        AUSTRALIA WESTERN OF COMMISSION CE          :uR
  (1                                                                                                                            AUDITED
                                                                                                                               OAG'.
 Commission. Insurance the of Fund General Commission Insurance the within held are Contracts Exchange Foreign Forward All
                 10. Note Refer million). $2.53 of gain (2008: million $15.78 to amounted contracts these on gain unrealised net a
 date, balance At immediately. Statement Income the to taken is loss or gain unrealised Any maturity. to period remaining same
 the with contract a for rate market current the to rate contractual the comparing by market to marked are contracts above The
  283647         238093                                                                                               Total
  1588           25             9.8400         9.9878                      months 3 to Up               Peso Mexican Sell
                 7,797                         2.4965                      months 3 to Up                 Zloty Polish Sell
  26,618         49,494         99.7748        75.7524                     months 3 to Up               Yen Japanese Sell
  24,769         12,825         0.4815         0.4769                      months 3 to Up       Pounds British Great Sell
  56,604         44,457         0.6068         0.5576                      months 3 to Up                       Euros Sell
  174,068        173,495        0.9433         0.7738                      months 3 to Up                  Dollars US Sell
 $000           s'000                                                                         follows: as are date balance
 2008           2009           2008           2009             at outstanding contracts exchange foreign forward of Details
 Amount Principal Notional      Rate Exchange Average
                        CONSOLIDATED                                               Contracts Exchange Foreign Forward         (c)
                                                                   (continued) INSTRUMENTS FINANCIAL 25.
                      STATEMENTS FNANCIAL THE F                             PART FORMNG A!D TO NOTES
J5:
C

           NOTES TO AND FORMNG PART OF THE RNANC(AL STATEMENTS

           25. HNANCIAL INSTRUMENTS (continued)

          (ci)   Interest Rate Risk Exposure

          Interest rate risk is the risk that the economic entity will suffer a financial loss due to adverse movements in interest rates.

          The following tables detail the economic entity's exposure to interest rate risk at balance date:

          Current Year                                                                                     CONSOLIDATED 2009 ($'OOO)
                                                                                                   Fixed Interest Rate Maturinq lfl                                                                 Weighted
                                                        Variable                                                                                                                                     Average
                                                        Interest          Within           Ito    2        2 to 3          3   to 4           4   to   5   More than   Non-Interest        Total      Interest
                                                             Rate          1   Year        Years           Years           Years              Years          5 Years       Bearinq                   Rate (%)
          Financial Assets
          Fixed Interest Bonds                                          118,793           16,817         11,886          19,865              12,676          69,559                     249,596          3.74
          Fixed Interest Unit Trusts                                                                                                                                      184,171       184,171
          Indexed Bonds                                                                                                                                      85,361                      85,361         3.76
          Shares - Listed                                                                                                                                                 637,312       837,312
          Equity Unit Trusts                                                                                                                                              174,038       174,038
          Alternative Assets Unit Trusts                                                                                                                                  156,659       156,659
          Margin Account                                                                                                                                                    1,560         1,560
          Cash and Cash Equivalent Assets                81,827                                                                                                                          81,827         3.06
          Right of Indemnity                                                                                                                                               72,350        72,350
          Forward Foreign Exchange Contracts
                                                                                                                                                                           15,777        15,777
          Other Financial Assets                                                                                                                                           91,902        91,902
          Total Financial Assets                         81,827         118,793          16,817          11,886          19,865          12,676             154,920      1,533,769    1,950,553

          Weighted Average Interest Rate (%)                3.06               5.31         3.74            3.74            3.74              3.74             3.75

          Financial Liabilities
          Bank Overdraft                                  3,842                                                                                                                          3,842          4.48
          RiskCover Floating Rate
                                                        334,431                                                                                                                                         (6.84)
          Promissory Note (i)
          Other Financial Liabilities                                                                                                                                      38,950       38,950
          Total Financial Liabilities                   338,273                                                                                                            38,950      377,223
          Net Financial Assets/(Liabilities)           (256,446)        118,793          18,817          11,886          19,865          12,676             154,920     1,494,819     1,573,330

          Weighted Average Interest Rate (%)               (6.71)

          The Interest Rate Risk ExposLire is the same for both Consolidated and the Insurance Commission with the exception of $3052 million relating to Cash and Cash Equivalent Assets of the
          Corporation, which is only represented in the Consolidated accounts.

          (i)    The RiskCover Floating Rate Promissory Note represents RiskCover's share of the investment pool of the economic entity. RiskCover earns an investment return or shares
                 investment losses in proportion to its share of the investment pool. For the year ended 30 June 2009 this equated to a loss of 6.84%.

    -4.




      INSURANCE COMMISSION OF WESTERN AUSTRALIA                                                                                                                                                    ANNUAL REPORT 2009
                NOTES TO AND FORMING PART OF THE FINANCIAL STATEMENTS

            25. FINANCIAL INSTRUMENTS (continued)
            (d)          Interest Rate Risk Exposure (continued)

            Previous Year                                                                                                CONSOLIDATED 2008 ($'OOo)
                                                                                                                 Fixed Interest Rate Maturing in                             I
                                                                                                                                                                                                          Weighted
                                                                                Variable                                                                                                                   Average
                                                                                Interest    Within        Ito 2          2 to 3      3   to   4      4   to   5   More than Non-Interest          Total     Interest
                                                                                   Rate      1   Year    Years           Years       Years         Years            5 Years     Bearing                     Rate (%)
            Financial Assets
            Fixed Interest Bonds                                                           132,962      25,851         26,171       17.992        27,206            63,363                    293,545          5.11
            Fixed Interest Unit Trusts                                                                                                                                            206,355     206,355
            Indexed Bonds                                                                                              14,059                                       88,521                    102,580          3.78
            Shares - Listed                                                                                                                                                       880,705     880,705
            Equity Unit Trusts                                                                                                                                                    190,794     190,794
            Alternative Assets Unit Trusts                                                                                                                                        232,345     232,345
            Margin Account                                                                                                                                                            661         661
            Cash and Cash Equivalent Assets                                     108,660                                                                                                       108,660          7.13
            Right of Indemnity                                                                                                                                                     57,376      57,376
            Forward Foreign Exchange Contracts                                                                                                                                      2,532       2,532
            Other Financial Assets                                                                                                                                                135,902     135,902
            Total Financial Assets                                             108,660     132,962      25,851         40,230       17,992        27,206           151,884       1,706,670   2,211,455

            Weighted Average Interest Rate (%)                                     7.13          5.11     5.11           4.65         5.11           5.11             4.34

            Financial Liabilities
            Bank Overdraft                                                        3,729                                                                                                         3,729          6.33
            RiskCover Floating Rate
                                                                               424015                                                                                                         424015          (1.97)
            Promissory Note (i)
            Forward Foreign Exchange Contracts                                                                                                                                                       -
            Other Financial Liabilities                                                                                                                                            38,006      38,006
            Total Financial Liabilities                                        427,744                       -                                -               -                    38,006     465,750
            Net Financial Assets/(Liabilities)                                 (319,084)   132,962      25,851         40,230       17,992        27,206           151,884       1,668,664   1,745,705

            Weighted Average Interest Rate (%)                                    (1.90)

            The Interest Rate Risk Exposure is the same for both Consolidated and the Insurance Commission with the exception of $2.836 million relating to Cash and Cash Equivalent Assets of the
            Corporation, which is only represented in the Consolidated accounts.

            (I)         The RiskCover Floating Rate Promissory Note represents RiskCover's share of the investment pool of the economic entity. RiskCover earns an investment return or shares
                        investment losses in proportion to its share of the investment pool. For the year ended 30 June 2008 this equated to a loss of 1.97%.


y.




     (MC'I a)   A   MflL? t'r,',d,va COmM   (ma)   mm,rQra)PN, St        I
                                                                    Ott?) I)                                                                                                                              ANNUAL REPORT 2009
I
         REPORT ANNUAL                                                                      AUsrRALIA WESTERN OF COMMISSION ANCE
                                                                                                                                           AUDITED
                                                              28. and 27 Notes in disclosed is Fund General Commission Insurance
    the and Fund Insurance Government Fund, Diseases) (Industrial Compensation Fund, Insurance Party Third the to relation in
    information Financial Report. Annual the of section Operations on Report - Performance Agency the in contained is Commission
    Insurance the by provided services insurance general the of description full A Australia. in industry insurance general the
    in predominantly operates entity economic The identifiable. readily not is risks insured Corporation's the of location ultimate The
                                                                                              REPORTING SEGMENT 26.
    38,006          38,950         38,006          38,950
    4,437           6,822          4,437           6822                                                               Liabilities Other
    18,464          19,656         18.464          19,656                                                                     Payables
    15,105          12,472         15,105          12,472                                                         Payables Investment
                                                                                                    Liabilities Financial Recognised
    793,596         663,815         793069         663,494
    57,376          72,350         57,376          72,350                                                           Indemnity of Right
    96,350          55,604         95,823          55,283                                                                 Receivables
    232,345         156,659        232,345         156,659                                              Trusts Unit Assets Alternative
    38,261          36,619          38,261         36,619                                                    Receivables Investment
    162,909         158,412        162,909         158,412                                                          Trusts Unit Equity
    206,355         184,171        206,355         184,171                                                  Trusts Unit Interest Fixed
                                                                                                       Assets Financial Recognised
                                                                                        Markets Organised on Traded Readily Not
                                                                                               (ee). 1 Note Refer markets. organised
    on traded readily not are which liability, and asset financial recognised of class each of date balance at value fair the details
    table following The markets. organised on traded readily are below, listed those of exception the with liabilities, and assets
    financial recognised The value. fair approximate that amounts at carried are liabilities and assets financial recognised The
                                                                                                                      Value Fair      (f)
     880,747        704,337        880,747         704,337                                              Sheet Balance per Assets Net
    (71,984)       (18,931)        (53,538)       (485)                                                                Liabilities Other
    (138,887)      (50,445)        (138,378)      (50,253)             8                                     Liabilities Tax Deferred
    (10700)                        (10,700)                            19                                   Liability Risk Unexpired
    (150,231)      (162,085)       (150,231)      (162,085)            18                              Liability Premium Unearned
    (9,581)        (10,307)        (9,581)        (10,307)             21                                  Liability Superannuation
    (1,456,633)    (1,543,392)     (1,459,920)    (1,545,249)         17                               Liability Claims Outstanding
     1,968          10,671         1,968           10,671             15                                                  Assets Other
     1,871          3,930          1,871           3,930              14                                 Costs Acquisition Deferred
     7,151          8,860          7,151           8,860              13                                            Assets Intangible
     388,276        359,051        388,276         359,051            12                                      Properties Investment
     304,650        291,271        304,650         291,271             11                            Equipment and Plant Property,
     18,049         19,537                                             10                         Subsidiary in Investment of Value
     171,540        161,279        171,540         161,279             10                                  Unlisted - Trust Property
     135,451        122,448        135,523         122,473             9              Receivable Recoveries Other and Reinsurance
     1,689,807      1,512,450      1,692,116       1,515,181
    (1,818)        (8,499)         (1,818)        (8,499)                                                         Futures Equity Less:
    (51,771)       (49,650)        (51,771)       (49,650)                                                Futures Rate Interest Less:
     1,743,396      1,570,599       1,745,705      1,573,330          25(d)                            above as Assets Financial Net
                                                                                                                     Assets Net
                                                                                   to Assets Financial Net of Reconciliation         (e)
    $'OOO          $'OOD           $'OoO          $,000              Notes
    2008           2009            2008           2009
    COMMISSION INSURANCE                   CONSOLIDATED                (continued) INSTRUMENTS FINANCIAL 25.
                         STATEMENTS FINANCIAL THE OF PART FORM\IG AND TO NOTES
h     3
p   ri
            NOTES TO AND F RMNG PART OF THE FINANCIAL STATEMENTS

            27. FUNDS INCOME STATEMENT

                                                                                                                   Compensation
                                                                                       Third Party              (Industrial Diseases)          Government           Insurance Commission
                                                                                    Insurance Fund                       Fund                Insurance Fund              General Fund
                                                                                       2009           2008           2009           2008        2009        2008         2009         2008
                                                                   Notes               $000           $'000          $'OOO         5000        $000         $'000        S'OOO        $000
           Premium Revenue                                            5            384,144        360,173              81               50                     -                           -
           Outwards Reinsurance Premium Expense                       6              (4,123)        (3,855)                              -                     -                           -
           OLitwards Reinsurance Commission Revenue                   5                416             413                               -
           Net Premium RevenUe                                                     380,437        356,731              81               50

           Claims Expense                                             6            (401,426)      (325,969)           128          1,290     (6,066)       5,312       (2,410)       4,738
           Reinsurance and Other Recoveries Revenue!
           (Charge)                                                   5               2,868          2,291           (206)         (475)        620         (986)          29        1,202
           Net Claims Incurred                                        7            (398,558)      (323,678)            (78)         815      (5,446)       4,326       (2,381)       5,940

           Gross Movement in Unexpired Risk Liability                19             10,700             488
           Reinsurance and Other Recoveries on Unexpired
           Risk Liability                                           19             (10,700)            700
           Net Movement in Unexpired Risk                          6,19                              1,188                               -                                                 -

           Acquisition Costs                                        6,(i)          (11,007)        (10,109)              -               -         -           -             -             -
           Underwriting and Administration Expenses                 6,(ii)         (35,504)        (25,958)          (724)         (537)     (1,974)        (858)     (29,632)     (22,663)
           UNDERWRITING (LOSS)IPROFIT                                              (64,632)         (1,826)          (721)          328      (7,420)       3,468      (32,013)     (16,723)

           Investment (Loss)/l ncome including Movements in
           Fair Value                                                 5           (118,004)        (36,800)        (1,238)         (323)          4        1,808      (79,044)     (36,848)
           Investment Expenses                                       6             (37,908)        (30,550)          (388)         (330)        (41)         (32)      16,797       10,994
           Finance Recoup/(Costs)                                    6                    -         (1,261)              -               -         -                   41,242       15,684
           Other liicome                                             5                                   -                               -   7,457        (5,244)      50,415       41,292
           Other Expenses                                            6                                                                   -                            (14,678)     (11,705)
           LOSS BEFORE RELATED INCOME TAX
                                                                                  (220,544)        (70,437)        (2,347)         (325)                       -      (17,281)      2,694
           EQUIVALENT BENEFIT/(EXPENSE)
           Income Tax Equivalent Benefitl(Expense)                   8              71,993         49,858            759            285                                 6,583      (16,185)
           LOSS AFTER INCOME TAX EQUIVALENT
           BENEFIT/(EXPENSE) ATTRIBUTABLE TO THE
                                                                                  (148,551)        (20,579)        (1,588)          (40)                              (10,698)     (13,491)
           STATE GOVERNMENT OF WESTERN
           AUSTRALIA

           The Note references above relate to the Notes to and forming part of the financial statements of the economic entity.

I?,




      'F   P4 M('P (Y ,tt,4   (W   A/TPP' 4 'TP4   4                                                                                                                              ANNUAL REPORT 2009
             ANNUAL                                                                    AUSTRALIA WESTERN OF COMMISSION ANCE
                                                                                                                                AUDITED
                                                                                                                                  OAG
                                  costs. these of million) 80.524 (2008: million .916 $1 retained Fund General Commission
Insurance The million). $0038 (2008: million $0139 Fund, Diseases) (Industrial Compensation and million); 80.416
(2008: million $1522 Fund, Insurance Government million); 82.196 (2008: million 88.038 Fund, Insurance Party Third
Investment: original the to proportion in Funds Commission Insurance other the to follows as costs, recovery debt Group
Bell to related which Expenses, Administration and Underwriting allocated Fund General Commission Insurance The
   19). Note (Refer Costs Acquisition Deferred of write-down for million) .584 $1 (2008: million $Nil of amount an Includes
                                                                               owner-occupier. an as incurred rentals
the of portion Commissions Insurance the to relation in million) 83.170 (2008: million S4.546 of revenue Investment
                                                                                                     is: elimination main The
eliminations. inter-fund account into taking Funds the of aggregation an represents Commission Insurance the for Statement
Income The transactions. inter-fund for eliminations without presented are Funds four the for Statements Income above The
                                                     2008. June 30 and 2009 June 30 ended years financial the during account
this for transactions financial no were there as note this in reported not is Fund Risks) (Miscellaneous Compensation The
                                                             (continued) STATEMENT INCOME FUNDS 27.
                  STATEMENTS FINANCIAL THE OF PART FORMNG A1D 10 NOTES
r; I
       NOTES TO AND FORWNG PART OF THE RNANCAL STATEMENTS

       28. FUN DS BALANCE SHEET

                                                                                                 Compensation
                                                                        Third Party           (Industrial Diseases)         Government            Insurance Commission
                                                                     Insurance Fund                   Fund                Insurance Fund               General Fund
                                                                        2009           2008       2009           2008       2009           2008         2009          2008
                                                           Notes        $,000         $'oGo       $,000          $000       $000           $000         $000          $'000
      ASSETS
        Current Assets
        Cash and Cash Equivalents                          24              -              -           -               -                      -              -                -
        Receivables                                          9       28,155        25112           124            145      5,730       4,795           9,087        11376
        Current Tax Receivable                                             -                                          -                      -        10,033         4812
        Financial Assets at Fair Value Through Profit or
        Loss                                                10                                                        -                      -     1,282,789     1430986
        Deferred Acquisition Costs                          14         3,930          1,871                           -                      -              -             -
        OtherAssets                                         15                            -           -               -                      -         1,721           850
        Total Current Assets                                         32,085        26,983          124            145      5,730       4,795       1,303,630     1448,024

        Non-Current Assets
        Receivables                                          9       70,420       84,210         1,082          1,269     37,780      36,636         98,109       125,634
        Financial Assets at Pair Value Through Profit or
                                                           10                                                         -                      -      325 315       336,119
        Loss
        Deferred Tax Assets                                           2,258               -        445                                       -              -           -
        Property, Plant and Equipment                      11              -              -           -                                      -      291,271       304,650
        Investment Properties                              12                             -                           -                      -      359,051       388,276
        Intangible Assets                                  13                             -                           -                      -        8,860          7,151
        OtherAssels                                        15                                                         -                      -          886          1,118
        Total Non-Current Assets                                     72,678       84,210         1,527          1,269     37,780      36,636      1,083,492     1,163,248
        Inter-Fund Investments                                     1,998,294    2,208,889       19,934         23,244      1,987       2,969      (2,020,215)   (2,235,102)
      TOTAL ASSETS                                                 2,103,057    2,320,082       21,585         24,658     45,497      44,400        366,907       376,170




JMO I18I\J('F   ('(AI'ION   (W WFTPC5   4   J'f54   IA                                                                                                            ANNUAL REI'ORT 2009
       NOTES TO AND                 FOMNG         PART OF THE FINANCIAL STATEMENTS

       28. FUNDS BALANCE SHEET (continued)

                                                                                                               Compensation
                                                                                   Third Party              (Industrial Diseases)              Government              Insurance Commission
                                                                                Insurance Fund                      Fund                     Insurance Fund                 General Fund
                                                                                   2009           2003           2009           2008           2009            2008           2009            2008
                                                              Notes               $'OOO          $'OOO           $'OOO          $'OOO          $'OOO          S'OOO           $'OGO          $'OOO
       LIABILITIES
        Current Liabilities
        Bank Overdraft                                          24               3,264          1,261               2                -           61                            515          2,468
        Payables                                                16              14,074         15,835              53               78          292              19         18,261         18,143
        Current Tax Payable                                                      1,953         57,420              16            406                                              -                 -
        Outstanding Claims Liability                            17             364,130        301,590            423             466          5,632          4,699           8,438          8,985
        Unearned Premium Liability                              18             162,085        150,171                             60                                                -               -
        Unexpired Risk Liability                                19                      -      10,700                               -                                                               -
        Provisions                                              20                    -                 -                           -                                        5,771          3,947
        Total Current Liabilities                                              545,506        536,977            494           1,010          5,985          4,718         32,985          33,543

        Non-Current Liabilities
        Payables                                                16                    -        18,451               -               -              -              -        18,464               13
        Outstanding Claims Liability                            17           1,038,780      1,024,930          4,586           5,225         39,512         39,682         81,891          71,056
        Provisions                                             20                     -              -              -                                             -        11,358          10,071
        Deferred Tax Liabilities                                 8                    -        72,402                            330                                       53,148          66,155
        Total Non-Current Liabilities                                        1,038,780      1,115,783          4,586           5,555         39,512         39,682        164,861        147,295
      TOTAL LIABILITIES                                                      1,584,286      1,652,760          5,080           6,565         45,497         44,400        197,846        180,838
      NET ASSETS                                                              518,771         667,322         16,505         18,093                                       169,061        195,332

      EQUITY
       Asset Revaluation Reserve                                                                     -              -                -                            -       104,037        119,610
       Compensation (Industrial Diseases) Fund Reserve                                                  -     16,505         18,093
       Funds' Retained Earnings                                 29            518,771         667,322                                -                            -        65,024          75,722
      TOTAL EQUITY                                                            518,771         667,322         16,505         18,093                               -       169,061        195,332

      The Compensation (Miscellaneous Risks) Fund is not reported in this note as there were no financial transactions or assets and liabilities for this account during either of the 2009 or 2008
      financial years.
      The Government Insurance Fund forms part of the financial statements of the Insurance Commission. In accordance with the Cabinet's decision of May 1996, however, the Department
                                                                                                        1
      of Treasury and Finance has assumed liability for the accumulated deficit in that FLind as from July 1997.

      The above Balance Sheets for the four Funds are presented before eliminations for inter-fund transactions. The Note references above relate to the Notes to and forming part of the
      financial statements of the economic entity.




c:t


      )RAN(F (Y)MMJiON OF WeSTERN AUSTRALiA                                                                                                                                              ANNUAL RePORT 2009
  C
000
  m   NOTES TO AND FORMING PART OF THE F(NANCOAL STATEMENTS

      29. FUNDS RETAINED EARNINGS

                                                                                  Compensation
                                                        Third Party            (Industrial Diseases)          Government            Insurance Commission
                                                      Insurance Fund                   Fund                 Insurance Fund               General Fund
                                                        2009           2008         2009          2008        2009           2008        2009        2008
                                                        $.000          $'000       $'oOO          $000        $'OOO          $000        $'000       $'000

      Balance at Beginning of the Year               667,322      687901                                -                              75,722       89213

      Loss After Income Tax Equivalent Benefit       (148,551)    (20579)         (1,588)          (40)          -              -      (10,698)    (13491)

      Amount transferred from Compensation
      (Industrial Diseases) Fund Reserve                                  -        1,588               40
      BALANCE AT END OF THE YEAR                     518,771      667,322                                                              65,024       75,722




                                         r,oPDA,,A                                                                                                 ANNUAL RePORT 2009
            NOTES TO AND FORMNG PART OF THE FINANCAL STATEMENTS

        30. EXPLANATORY STATEMENT                    - INSURANCE COMMISSION
                                                                                                             PROFIT INCREASE/(DECREASE)
                                                                  ACTUAL      BUDGET      ACTUAL                  FROM ACTUAL 2009 TO
                                                                      2009       2009         2008      BUDGET 2009               ACTUAL 2008
                                                          Notes       $'OOO       $000       $000         $'OOO            %        $'OOO

        Premium Revenue                                      5    384,225     384,323     360223           (98)         (0.0)     24002            6.7
        Outwards Reinsurance Premium Expense                 6      (4,123)    (4,061)     (3855)          (62)         (1.5)       (268)         (7.0)
        Outwards Reinsurance Commission Revenue              5         416         113        413          303        268.1             3          0.7
        Net Premium Revenue                                       380,518     380,375     356,781          143           0.0      23,737           6.7

        Claims Expense                                       6    (409,774)   (430,892)   (314,629)     21,118           4.9     (95,145)        (30.2)
        Reinsurance and Other Recoveries Revenue             5       3,311       4,023       2,032        (712)        (17.7)      1,279          62.9
        Net Claims Incurred                                  7    (406,463)   (426,869)   (312,597)     20,406           4.8     (93,866)        (30.0)

        Gross Movement in Unexpired Risk Liability          19      10,700                    488       10,700                    10,212    2,092.6
        Reinsurance and Other Recoveries on Unexpired
        Risk Liability                                      19     (10,700)                   700      (10,700)                  (11,400)   (1,628.6)
        Net Movement in Unexpired Risk                    6,19                               1,188                                (1,188)       (100.0)

        Acquisition Costs                                    6     (11,007)    (12,500)    (10,109)      1,493          11.9        (898)         (8.9)
        Underwriting and Administration Expenses             6     (62,122)    (62,740)    (45,814)        618           1.0     (16,308)        (35.6)
        UNDERWRITING (LOSS)/PROFIT                                 (99,074)   (121,734)    (10,551)    22,660           18.6     (88,523)       (839.0)

        Investment (Loss)/lncome including Movements in
        Fair Value                                           5    (202,828)   174,420      (75,333)   (377,248)      (216.3)    (127,495)       (169.2)
        Investment Expenses                                  6     (21,540)   (30,494)     (19,918)      8,954         29.4       (1,622)         (8.1)
        Finance Recoup/(Costs)                               6      41,242    (21,668)      14,423      62,910        290.3       26,819        185.9
        Other Income                                         5      56,706     26,734       35,016      29,972        112.1       21,690         61.9
        OtherExpenses                                        6     (14,678)   (14,255)     (11,705)       (423)         (3.0)     (2,973)        (25.4)
        (LOSS)/PROFIT BEFORE INCOME TAX
                                                                  (240,172)    13,003      (68,068)   (253,175)     (1,947.1)   (172,104)       (252.8)
        EQUIVALENT BENEFIT/(EXPENSE)




INSI   H?   AN(F rOMMISSION OI WESTERN AUSTRALIA                                                                                                          ANNUAL REI'ORT 2009
 REPORI'O9 ANNUAL                                                                       A AUSTRAI.I ESThRN w OF   COMMISSION
                            EqLupment. and Plant Property, as classified property from income rental to respect in million $24.4
of receipt the to predominantly due million $26.7 of budget the than better million $30.0 was million $56.7 of income Other
                                                                                                                    Income Other
                                  reason. same the for Commission Insurance the to RiskCover by paid was million $16.3 2008,
In budget. than better million $62.9 of variance the explains This Commission. Insurance the by return investment an paid
being than rather million $36.5 of expense investment an charged being RiskCover in resulted year the for loss investment The
                                                                                                         Recoup/Costs Finance
                                                                                                      year. the for 12.5% of loss
median a reported which survey Fund Pooled Mercer the with funds peer to relative favourably compared still it terms, absolute
in outcome disappointing a was return total the Whilst respectively. 0.7% and 10.9% of returns budget than better deliver
to classes asset only the were Interest Fixed Australian and Interest Fixed Global budget. than worse 3.6% was which return
Cash the by impacted further was classes asset these from returns negative The respectively. 9.6% and 16.3% 22.0%, 26.5%,
by budget than worse were Properly and Assets Alternatives Shares, Australian Shares, Global of performance The budget.
 from return class asset each of variations the in reflected is year the over markets financial in volatility extreme The target.
5.4% the than worse points percentage 12.7 was which 7.3% negative was 2009 for return of rate income investment The
                                          million. $75.3 of loss investment years last than worse million 27.5 $1 and million
$174.4 of income investment budgeted the than worse (216.3%) million $377.2 was million $202.8 of loss investment The
                                                                Value Fair in Movements including Loss/Income Investment
                                                                       account. to brought liability previous the of reversal
the reflects movement The 2009. June 30 at required liability no being there in resulted claims of cost future associated
the meet to premiums unearned of ability the to regard with 2009 June 30 the at performed tests adequacy liability The
                                                                                                       Liability Risk Unexpired
                                                       million. $29.5 of paid claims in increase an and million $66.3 of provision
claims oLltstafldiflg net the in increase an to mainly due year last than worse million $95.1 were expenses Claims budget.
than better million $2.1 were Recoveries budget). than worse million $1.9 Fund General Commission Insurance and budget
than worse million $4.2 Fund Insurance Government budget, than better million $24.9 Fund Insurance Party (Third budget
than better million $18.9 was This million. $75.4 of claims outstanding net for provision the in movement negative overall
an was there assessment, actuarial Following budget. than better (4.9%) million $21.1 is million $409.8 at expense
                                                                                                                   Claims
                                                                                                                  Expense Claims
                                                                                                                variances. key
the highlights below analysis The million, $68.1 of Loss years last than worse million $172.1 was tax before Loss The million.
$13.0 of Profit budgeted the than worse million $253.2 is million $240.2 of Commission Insurance the for tax before Loss The
                                                                                                                      Loss/Profit
                                        ACTUAL    2008   AND BUDGET     2009   TO RESULTS ACTUAL        2009   OF COMPARISON
                     (continued) COMMISSION INSURANCE - STATEMENT EXPLANATORY 30.
                  STATEMENTS FNANCAL THE OF PART FOR\iBNG AND TO NOTES
   J
   2
          NOTES TO AND FOR1III\G PART OF THE FNANCAL STATEMENTS

          31.      GROUP ENTTES
                                                                                                                                                                             Total Changes
                                                                                                                   Shares Held                Cost of Investment
                                                                                                                                                                          Recognised in Equity
                                                                                               Place of             2009           2008           2009           2008            2009          2008
          Name                                                                Legal Form    Incorporation                            %           $'OOO          $'OOO          $'OOO          $000
          Parent Entity

          Insurance Commission of Western Australia                             Statutory      Western
                                                                                Authority      Australia                                                            -      (160,837)       (34,110)

          Less:    Increase in value of Investment in the Corporation
                   (Refer Note 10)                                                                                                                                           (1,488)        (1,227)
                                                                                                                                                                           (162,325)       (35,337)

         Subsidiary

         State Government Insurance Corporation                                Statutory       Western
                                                                               Authority       Australia             100           100        100,000        100,000          1,488          1,227
                                                                                                                                              100,000        100,000       (160,837)       (34,110)


         The Insurance Commission would indemnify the Corporation in the event that its liabilities exceed its assets. No such indemnity was required for either 2009 or 2008.

         The movement in the value of the investment      in   the Corporation for the year ended 30 June 2009 of $1.5 million (2008: $1.2 million) has been credited to the Income Statement. Refer
         Note 6.




-4




     INSt iRANCt COMMISSI()N OF WESTF.RN AUSTRALIA                                                                                                                                      ANNUAL REPORT   2OO
                                                                                              AUSTRALIA WESTERN OF COMM[SSION CC                INSIJ
REPOR1,,,/ ANNIJAL
                                                                                                                                                 86
                                                                                                                                          AUDITED
                                                                                                                                                'OAG
                                                                   Statement. Income the in Benefit Tax Income an as balance the and
      (Equity) Reserve Revaluation Asset the in reflected being this of part with million, $12 approximately by reduced he then would
      Commission Insurance the of Liability Tax Deferred the succeed, to was request ruling the If 2009. June 30 at account to
      brought been has amount no process, rulings the of uncertainty inherent the given stage, early this At 1997. Act Assessment
      Tax Income the of 43 Division under claimed previously allowances back' 'claw to able be not would ATO the property of sale
      a of event the in that indicate which request ruling private similar a with concert in legislation existing upon builds ruling The
      (ATO). Office Taxation Australian the to Regime Equivalent Tax National the under submitted been has reqL!est ruling private A
                                                                                                                     Base Tax Buildings
                               date. balance at Commission Insurance the upon effect financial potential the estimate to practical not is
      it uncertainty, inherent to subject are liability or asset contingent resulting any of amounts the and outcome Court the Because
                                                                      litigation. the of funding the to exposure of respect in program
      insurance the modify appropriate, considered where and monitor, to continues Commission Insurance The liability. contingent
      this to exposure the of some to relation in place in put was program cover insurance an Liquidators, the of funding of
      level unforeseen and extraordinary the mitigate To successful. are appeals Banks' the that event the in Court, the by ordered
      costs ol respect in paid be to required amounts any of share Commission's Insurance the to relates liability contingent The
                                                                                exhausted. are appeal of rights all after upheld is banks
      of syndicate the against action recovery the if Liquidators, the from receive will Commission Insurance the which amount the to
      relates asset contingent The processes. appeal of subject the is Judgement The billion. $1.6 of excess in repay to Banks the
      requiring Australia Western of Court Supreme the in Judgement obtaining in successful were Liquidators the year, the During
                                                                                             liability. a incur or asset an realise either to
      time in point future a at likely is Commission InsLirance the litigation, this of oLitcome the upon Contingent banks. of syndicate
      a against action Liquidators' the in Group Bell the of Liquidators the of costs the fund to agreed has Commission
                                                                                                                         Insurance The
                                                                                                                   Action Recovery Bell
                                                                       LIABILITIES AND ASSETS CONTINGENT
                                             systems. the of integrity the ensure to instigated been has that action remedial
      with together addressed been have Assurance Quality and audits external by identified matters addition, In adequate.
      be to considered are receipts premium of processing and collection the for controls internal and procedures The
                                                                and DOT; by behalf its on collected as receive to entitled was
      Commission Insurance the duty stamp and GST premiums, such all reflect accurately and completely 2009, and 2008
      years financial the during Commission Insurance the to remitted duty stamp and GST premiums, insurance Party
                                                                                                                          Third
                                                                                                     that: confirms advice written DOT's
                                           revenue. premium Commission's Insurance the of all virtually representing million), $360.2
      (2008: million $384.1 was year financial 2009 the during Fund Insurance Party Third the for recognised revenue premium Total
                                                                                                                   Commission.
      Insurance the to premiums remitting and policies those to relation in premiums collecting policies, insurance Party
      Third Commission's Insurance the issuing for 1943, Act Insurance) Party (Third Vehicle Motor the under responsible, is DOT
                    Australia. Western of Government the of agency an Infrastructure, and Planning for Department formerly (DOT),
      Transport of Department the on extent significant a to depend Commission Insurance the of activities trading normal The
                                                                                           DEPENDENCY ECONOMIC
                         STATEMENTS HNANCDAL THE OF PART FORMING AND TO NOTES
/        RU1'ORO9 ANNUAL                                                                          AuSTRALIA WESTERN OF COMMISSION RANCO         IN
               I                                                                                                                                AUDITED
    "
                   entity. economic the of statements financial the affect materially that date sheet balance after occurred have events No
                                                      DATE SHEET BALANCE AFTER OCCURRING EVENTS 35.
                                            trust. property unlisted an in million $28.2 further a invest to committed has Board the 2010, In
                                                                                                     year. financial 2010 the during action
        recovery Group Bell the of prosecution Liquidators' the funding to relation in million $12.0 of budget a approved has Board The
                                                                                                                Commitments Other
                                                                                                              project. research
        medical Mesothelioma" of "Markers the undertake to Australia Western of University The and Research Medical Advanced
        for Foundation the to 2010 June 30 until increases CPI plus annum per $294,000 provide to committed Board the 2006, In
                                                                                                                   Research Medical
                                                                                                              year. financial 2010
        the for programs Education Community Safety Road for funding provide to million $5.0 of budget a approved has Board The
                                                                                                         Commitments Safety Road          (b)
        51,506            43,941         51,506          43,941                                  Commitments Expenditure Capital Total
         3,109            5,359          3,109           5,359                               Construction/Development under Property -
                                                                                                               Years: Five to One Between
        48,397            38,582         48,397          38,582
         984              2,200          984             2,200                                                                            -
                                                                                                                       Property Other
         43,791           32,154         43,791          32,154                              Construction/Development  under Property -
         2993             4,228          2,993           4,228                                                   Property Investment -
         629                             629                                                                                          -
                                                                                                                         Hardware IT
                                                                                                                Year: One than Later Not
        $'Ooo     $,000      $'Ooo       $,000
        2008      2009       2008        2009
        COMMISSION INSURANCE       CONSOLIDATED
                                                                                                 follows: as payable are statements,
        financial the in reported amounts the to additional expenditure capital contracted being commitments, expenditure Capital
                                                                                                Commitments Expenditure Capital
                                                                                       COMMITMENTS EXPENDITURE 34.
                            STATEME11S HNANCAL                            Th OF PART FORMNG AND TO NOTES
    PP
         j
    I)t) I
     09       REPOR ANNUAL.                                                                   AusTRALIA WESTERN OF COMMISSION ANtE
                                                                                                                                           86NS
                                                                                                                                          AUDITED
                                                                                                                                          OAG'
                                      2               1                                    -3,000,000 1,000,001
                                      5               9                                              -
                                                                                           1,000,000 250,001
                                      9               15                                   250,000 - 100,001
                                     No              No.                          ($): Between Values with Write-Offs
                                     2008            2009                            Recovery Individual of Number
                                      11,635          10,172
                                      8,054           5,963                                      Governor the by Off Written Amounts
                                      1,616           2,167                           Minister responsible the by Off Written Amounts
                                      ,965 1          2,042                                         Board the by Off Written Amounts
                                      11,635          10,172
                                                      -
                                      41                                                                  Fund Insurance Government
                                      11,594          10,172                                               Fund Insurance Party Third
                                     $000             $000
                                     2008            2009
                                                                                                            funds: following
    the from off written were recoveries potential 2006, Act Management Financial the of 48(2) Section with accordance In
               received. recoveries the by offset than more is which $1934). (2008: year the for $3,394 at estimated is which of total
    the owners, vehicle motor uninsured by premiums Fund InsLirance Party Third of non-payment the is Commission Insurance
    the to loss only The $190,798). (2008: $201,690 of drivers or owners negligent from received recoveries of net shown
    are year financial 2009 the for below write-offs debt Fund Insurance Party Third The Statement. Income the in expense an
    as charged been not has debts these of write-off the consequently and measured reliably be not could recovered be to amount
    the because income as account to brought been not have recoveries These obligations. their meet to debtors the of ability
    the to regard with assessed are receivable recoveries potential Contracts, Insurance General 1023 AASB with accordance In
                                                                                                                              party.
    third the or driver the from claim the of costs the recover to seeks Commission Insurance the fault, at was party third a where
    or uninsured, was vehicle the where or policy the of warranties the of breach in was vehicle a of driver negligent the Where
    claim. party third a pay to obligation statutory a has Commission Insurance the Fund, Insurance Party Third the to relation In
                                                                                            Off Written Recoveries Claims Potential
                                                                                                                        received.
          was $605) (2008: SNil of settlement and stolen or lost equipment and plant to relation ri lodged were claims Insurance
                                                                                                                    $9,478).
                                                      -
          of Debt Investment (2008: S59.105 of TPIF       Debt Reinsurance and $517334 of ICGF - Debt Reinsurance Comprises
     1
                                                      -
                                      1                                  (h)                                     Losses of Recovery
     9                 576            9               576                (i)                           Debt and Revenue of Write-Off
    $000              $000           $000            $'OOO
    2008              2009           2008           2009
     COMMISSION INSURANCE                   CONSOLIDATED
                                           CAUSES OTHER AND DEFAULT THEFT, THROUGH LOSSES                                           36.
                        STATEMENTS FiNANCIAL THE OF PART FORMNG AND TO NOTES
          j
1   C'    I
 '09 REPORT' ANNUAL                                                                      AUSTL1A WESTERN      OF COMMSS1ON \NCE
                                                                                                                                       AUDITED
                                                                                                                                       ('OA\
                               Officer) Finance (Chief Administration and Finance Manager                           Cowell Ernie -
                                                                        Investments Manager                          O'Neill Julie -
                                                                Resources Human Manager                            Speight Grant -
                                                            Technology Information Manager                           Amos Peter -
                                                             Investigations Special Manager                                        -
                                                                                                                     Milligan Jim
                                                                          RiskCover Manager                        Williams Don -
                                                     Injury Personal Vehicle Motor Manager                         Zanuttigh Fab -
                                                                Insurance Manager General                             Watts Lew -
                                                                                                                                   -
                                                       Services Corporate Manager General                          McAullay Ken
                                                  of: consist Commission Insurance the   of Personnel Management Key Other The
                                                  I                                        -370,000 360,001
                                                                                           -350,000 340,001
                                                                                           -140,000 130,001
                                                                                           70,000 - 60,001
                                                                                                  -
                                                                                           60,000   50,001
                                               4                                           50,000 - 40,001
                                4                                                          40,000 - 30,001
                               2008            2009
                                            Board
                                                                                           ($) Band Income
                                    the of Members of No.
                                                 follows: as are $10,000 of income of band each within fall received, benefits
 fringe and superannuation to contributions employers salaries, fees, total whose Board the of Members of number The
                                                           Director Commissioner/Managing                                         -
                                                                                                                      Evans Vic
                                                                             Commissioner                       McGowan Judy -
                                                                             missioner Corn                                     -
                                                                                                                 Pascoe Doug
                                                                            Commissioner                     McAuliffe Annemie -
                                                                            Commissioner                                        -
                                                                                                                 Brown Sharon
                                                                         Chairman Deputy                     Easiwood D Peter -
                                                                                 Chairman                     Wright E Michael -
                                            Director: Managing the and Commissioners non-executive six of consists Board The
                                                                                      benefits. fringe and superannuation
 to contributions employer's salaries, fees, incorporating Cost Employment Total a on based are amounts above These
                                2.452,425      2,668,598
                                207,198        234,084
                                146,461        168,821                                      Personnel Management Key Other -
                                60,737         65,263                                        (Board) Commissioners of Board -
                                                                 by: year financial the for receivable and due or received benefits)
                                                               (long-term superannuation to contributions employers Total
                                2,245,227      2,434,514
                                1,614,488      1,780,105                                    Personnel Management Key Other -
                                630.739        654,409                                       (Board) Commissioners of Board -
                                                                         by: year financial the for receivable and due or received
                                                               benefits) (short-term benefits fringe and salaries fees, Total
                               $              $
                               2008           2009
                                      CONSOLIDATED
                                                  PERSONNEL MANAGEMENT
                KEY OTHER AND COMMISSIONERS OF BOARD THE OF REMUNERATION 37.
                   STATEiENTS FVNANCAL THE OF PART FORMNG AND TO NOTES
Ji2
     REPORI ANNUAL.                                                                  AUSTRAL[A WESTERN OF COMMISSION SURANCE
                                                                                                                                   86
                                                                                                                                 (AUDITED
                                                                                                                                  /OAG
 2000). Act Provisions) Consequential and (Transitional Superannuation State the of 26 Section by force in continued now are
which cl provisions the 1938, Act Benefits Family and Superannuation repealed the in defined originally (as Scheme Pension
State the of members were Personnel Management Key Other or Board the of Nil) (2008: members no 2009, June 30 At
                                              1                                        -280,000 270,001
                                              -
                                                                                       -270,000 260,001
                                              1                                        260,000 - 250.001
                                                                                       -250,000  240,001
                                                                                       -240,000  230,001
                               2              2                                        -230,000  220,001
                               1              2                                        -220,000  210,001
                                              -
                                                                                       -210,000  200,001
                               3              1                                        -200,000  190,001
                               -              1                                        -190,000  180,001
                               2                                                       -180,000  170,001
                                              1                                        -170,000  160,001
                               1                                                       -160,000  150,001
                              2008           2009
                                   Personnel Management
                                                                                       ($)   Band Income
                                      Key Other of No.
       follows: as are $10000 of income of band each within fall received, benefits fringe and superannuation to contributions
employer's salaries, fees, total whose Board) the of members (excluding Personnel Management Key of number The
                                        (continued) PERSONNEL MANAGEMENT
               KEY OTHER AND COMMISSIONERS OF BOARD THE OF REMUNERATION 37.
                  STATEMENTS FINANCAL THE OF PART FOFMING AND TO NOTES
           REPORT ANNUAL                                                                    AUSTRALIA WESTERN OF COMMISSION \NCF.
                                                                                                                                          d
                                                                                                                                              86 \.
                                                                                                                                          (AUDITED
                                                                                                                                              OAG   /
                                     Corporation. the from or to owing amounts for required is impairment for allowance No
                                                      Corporation. the from received or to provided guarantees no are There
                                            cash. in occurs settlement and unsecured are end year at balances Outstanding
                       terms. commercial normal under basis length arm's an on made are Corporation the with Transactions
                                                                      Parties Related with Transactions of Conditions and Terms
                                             date. repayment designated no is there rates, market current at Corporation
the to interest pays Commission Insurance The 1052. Interpretation and agreement tax-sharing the with accordance
in payable intercompany an by represented are which Commission Insurance the by used Corporation the of losses
tax past of value the from arising Corporation the to due amounts to relates Corporation the to Payable Non-Current
                                                                                         services. Commission's
 Insurance the of usage its to proportion in fee management a Corporation the charges Commission Insurance The
      below. (iii) Refer Corporation. the to Payables Other Non-Current the on Corporation the to interest pays also It banks.
 in and hand on cash      the of share its to proportion in Corporation the to earned interest pays Commission Insurance The         (I)
     18,451         18,451                                            (iii)                      Corporation to Payable Non-Current
     193            183                                               (ii)                    Corporation By Paid Fees Management
 (1,440)           (1,002)                                            (i)                                  Corporation to Paid Interest
                                                                                         Corporation Insurance Government State
                                                                                                                     Subsidiary:
 $000       $00o      $'OOO        $,000
 2008       2009      2008        2009
 COMMISSION INSURANCE       CONSOLIDATED
                               Corporation: the with into entered were that transactions of amounts the provides table following The
 18,049            19,537                                                                             Investment in \/alue Carrying
 100,000           100,000                                                                              Investment of Cost Original
 100%              100%                                                                                              Interest Equity
                                                      Australia                             Corporation Insurance Government State
 $000              $'OOO                          Incorporation                                                                 Name
 2008              2009                            of Country
                                                     subsidiary: its in interest Commission's Insurance the details table following The
                                                                     (Corporation). Corporation Insurance Government State
 the subsidiary, its and Commission Insurance the of statement financial the include Statements Financial Consolidated The
                                                                               DISCLOSURES PARTY RELATED 39.
                                                                                             Corporation. the to Commission
 Insurance the by charged fee management the in included is amount This Corporation. the of statements financial the auditing
 for General Auditor the to payable and due or paid amounts of respect in $14,000) (2008: $14,000 of amount an Includes
                                                                                                              Indicators Performance
     384,000        394,000        384,000           394,000
                                                                                    and Statements Financial Accounts, the Auditing
 $                 $               $             $
 2008      2009       2008       2009
 COMMISSION INSURANCE      CONSOLIDATED
                                                     follows: as is year financial the for General Auditor the to payable Remuneration
                                                                                   AUDITOR OF REMUNERATION 38.
                       STATEMENTS FINANCAL THE OF PART FORM(NG AND TO NOTES
J(
-1
 I
200 REPORU ANNUAL                                                                      AUSTRALIA VhSTERN OF COMMISSION 'C
                                                                                                                              AUDITED
                                                                                                                                     OAG
                                                                                                                                    .' -.--
                                                                                                          Statements.
Financial RiskCover's of part forming and to references the with conjunction in read he should Statement Income The
                 (27,677)          (30,815)                                                                                LOSS
                 (16,325)          (36,474)                                 Value Fair in Movements including Loss Investment
                 (11,352)           5,659                                                    PROFIT/(LOSS) UNDERWRITING
                 (22,238)          (26,208)                                          Expenses Administration and Underwriting
                 (152,269)         (164,551)                                                                IncUrred Claims Net
                  4,100             15,372                                         Revenue Recoveries Other and Reinsurance
                 (156,369)         (179,923)                                                                Expense Claims
                  163,155           196,418                                                          Revenue Premium Net
                  1,277             1,302                                         Revenue Commission Reinsurance Outwards
                 (13,121)          (13,220)                                          Expense Premium Reinsurance Outwards
                  42,788            62,124                 (b)                                        Adjustment Premium
                  132,211           146,212                 (a)                                          Revenue Premium
                 $000              $'OOO               References                            2009 June 30 ended year the for
                 2008              2009                                                               STATEMENT INCOME
                                                                                               Finance. and Treasury of
Department the with arrangements current under Equivalents Tax Income pay to liable not is Fund Managed the RiskCover
                                                                                                   entity. economic
the of not and Australia Western of Government State the of asset an represents RiskCover in earnings retained Any
                                                                6. Note Refer Commission. Insurance the of pool investment
the of share its to proportion in losses investment shares or return investment an earns RiskCover 10. Note Refer Note.
Promissory Rate Floating a by represented entity, economic the of pooi investment the in inciLided however, are, RiskCover
of assets Investment The consolidated. not therefore are and entity economic the by owned not are assets RiskCover's
                                       liability. claims outstanding the of estimation its in factor discount risk-free a applied
has RiskCover Assets. Contingent and Liabilities Contingent Provisions, AASB137 of requirements the within falls rather but
Contracts, Insurance General AASB1O23 of requirements the by covered not is it self-insurance as classified is RiskCover As
                           1. Note Refer statements. financial entity's economic the preparing in used those with consistent
are statements financial RiskCovers preparing in adopted policies accounting significant the below, stated as
                                                                                                                     Except
                                                                         RiskCover. by used services Commission's Insurance
the of proportion the for costs of recovery a being activity this from fee management a earns Commission Insurance The
                                                             period. termination of notification three-year rolling a of basis
the on Fund RiskCover the manage to Commission Insurance the of re-appointment the confirmed Finance and Treasury
of Department the 2001, July 18 On Finance, and Treasury of Department the of supervision the under authorities, public
participating its and Government State the of behalf on Commission Insurance the by managed is and Australia, Western
of Government State the by underwritten is Fund RiskCover The basis. self-insurance a on authorities public participating
its of risks insurable all administer to approach Fund Managed a adopted has Australia Western of Government The
                                                      STATEMENTS FINANCIAL FUND RISKCOVER 40.
                STATEMENTS flNANCVAL ThE OF PART FORJHNG AND TO NOTES
       20 REPORT ANNUAL                                                                    AUSTRALLA WOS1ERN OF COMMISSTON NCE
                                                                                                                          2010.
      for available made be will Allowance Experience Fund no 2009, in earnings retained in reduction significant the to Due
                                                       years. five past the over classes Liability and Property the for received
      contributions total the of proportion member's each on based members, fund amongst apportioned was amount this
      year, the During $21768158. was amount this of 25% to equating capital), of (return Allowance
                                                                                                          Experience Fund The
                                                                                           Allowance. Experience Fund the
      for consideration br available $87,072,632 of amount an leaving $32,706,000, of year 2007 the of Reserve Prudential
      the by reduced further then is $119,778,632 of amount net resulting The year. 2008 the during paid $20,231,898
      of Allowance Experience Fund the less classes), these for provisions adjustment contribution in result (which
      dale that at ($7,469,953) class Compensation Workers' the and ($2,900,003) class Vehicle Motor the for surpluses the
      less $150,380,486, of 2007 June at3O equity total the on based was year 2009 the for Allowance Experience Fund The
                                                  review). annual to (subject period four-year a over agencies participating to
      returned be will Reserve" "Prudential approved the of excess in funds whereby capital) of (return Allowance Experience
      Fund a introduce to Fund RiskCover the for approval gave Committee Review Expenditure Government State The                   (ii)
               claims. outstanding for provision the to respect with adequacy of likelihood 75% a achieve should and Actuary
      independent an by calculated was S40,475,000) (2008: $43,663,000 of amount This requirements. APRA the with
      comply to required were it if as calculated Margin, PrLldential a of value the to equal approximately Reserve Prudential
      separate a maintain to Fund RiskCover the for approval gave Committee Review Expenditure Government State The                   (I)
                                                                                                            Statements.
      Financial RiskCover's of part forming and to references the with conjunction in read be should Sheet Balance The
                         102,471         49,888                  (ii)                                               EQUITY TOTAL
                        40,475           43,663                  (i)                                            Reserve Prudential
                        61,996           6,225                                                                  Earnings Retained
                                                                                                                           EQUITY
                         102,471          49,888                                                                       ASSETS NET
                        354,165           391,720                                                               LIABILITIES TOTAL
                        209,537           232,430                                                    Liabilities Non-Current Total
                        209,537          232,430                 (d)                                   Liability Claims Outstanding
                                                                                                           Liabilities Non-Current
                        144,628           159,290                                                         Liabilities Current Total
                        126,645           138,231                (d)                                   Liability Claims Outstanding
                        17,983           21,059                                                                           Payables
                                                                                                                Liabilities Current
                                                                                                                         LIABILITIES
                        456,636          441,608                                                                   ASSETS TOTAL
                        20,876           93,164                                                                        Receivables
                                                                                                              Assets Non-Current
                        435,760          348,444                                                             Assets Current Total
                        424,015          334,431                (c)           Loss or Profit Through Value Fair at Assets Financial
                        10,848           13,240                                                                       Receivables
                        897              773                                                          Equivalents Cash and Cash
                                                                                                                   Assets Current
                                                                                                                          ASSETS
                       $000             $000                References                                             2009 June 30 at
                       2008             2009                                                                     SHEET BALANCE
                                           (continued) STATEMENTS FINANCIAL FUND RISKCOVER 40.
                      STATEMENTS FUNANCIAL THE O( PART FORUNG AND TO NOTES
172
     '
c2
         9    REP0Rr21 ANNUAL                                                                 AUSTRALIA   oFwEsrERN ECOMMJSSION          IdA,
                                                                                                                                    (AUDITED
                                                                                                                                           /OAG
                                                                                                                          Statements.
             Financial RiskCover's of part forming and to references the with conjunction in read be should Statement Flow Cash The
                              897              773                   (h)                                                     YEAR THE
                                                                                  OF END THE AT EQUIVALENTS CASH AND CASH
                              3,554            897                                                                           YEAR THE
                                                                               OF START THE AT EQUIVALENTS CASH AND CASH
                             (2,657)          (124)                                                              EQUIVALENTS
                                                                                               CASH AND CASH IN DECREASE NET
                             (20,232)         (21,768)                                      Allowance Experience Fund for Payments
                                                                                     ACTIVITIES FINANCING IN USED FLOW CASH
                              40,124          89,584                                                                Commission
                                                                               Insurance the from received Funds Investment
                                                                                      ACTIVITIES INVESTING IN USED FLOW CASH
                             (22,549)         (67,940)               (h)                   Activities Operating From Flow Cash Net
                             (10,315)         (10,882)                                                Paid Tax Services and Goods
                             (20,642)         (25,534)                                 Paid Expenses Administration and Underwriting
                             (112,002)        (147,867)                                                                 Paid Claims
                             (15,023)         (14,635)                                                  Paid Reinsurance Outwards
                             (16,325)         (36,474)                                                                  Paid Interest
                              1,405            1,432                                    Received Commission Reinsurance Outwards
                              5,061           5,178                                      Received Recoveries Other and Reinsurance
                              145,292         160,842                                                             Received Premium
                                                                                       ACTIVITIES OPERATING FROM FLOW CASH
                                                                                                     2009 June 30 ended year the for
                                                                                                          STATEMENT FLOW CASH
                                                                                                                 Statements, Financial
             RiskCover's of part forming and to references the with conjunction in read be should Equity in Changes of Statement The
                              102,471          49,888                               PERIOD THE OF END AT EQUITY OF BALANCE
                              61,996           6,225                                                      Period the of End at Balance
                             (20,232)         (21,768)                              Year the during Paid Allowance Experience Fund
                             (7,769)          (3,188)                                                 Reserve Prudential to Transfer
                             (27,677)         (30,815)                                                            Period the for Loss
                              117,674          61,996                                                  Period the of Start at Balance
                                                                                                              EARNINGS RETAINED
                              40,475           43,663                                                     Period the of End at Balance
                              7,769            3,188                                                Earnings Retained from Transfer
                              32,706           40,475                                                  Period the of Start at Balance
                                                                                                            RESERVE PRUDENTIAL
                              150,380          102,471                           PERIOD THE OF START AT EQUITY OF BALANCE
                             $000             $000              References                        2009 June 30 ended year the for
                             2008             2009                                           EQUITY IN CHANGES OF STATEMENT
                                                (continued) STATEMENTS FINANCIAL FUND RISKCOVER 40.
                            STATEMENTS F\IANCAL THE OF PART FORMING AND TO NOThS
        21) REPORT   ANNUAL                                                                    AUSTRALIA WESTERN OF COMMISSION E             INSUR
        \\
                                                                                                                                             \86
                                                                                                                                     (AUDITED
                                                                                                                                         OAG   /
                                                                  million). $37.2 (2008: date balance at million $36.8 total and assessed
       internally are liabilities short-tail These risks. Travel and Accident, Personal and Vehicle Motor Interruption, BLisiness and
       Property for liabilities short-tail has also RiskCover Liability, and Compensation Workers' of classes long-tail ihe to addition In
                         mths 4 yrs 4      mth   1   yrs 4                                                      Classes Liability
                         mths 7 yrs 2      mths      6yrs 2                                              Compensation Workers
                                                                                      Settlemenl: to Term Expected Average Weighted
                          336,182           370,661
                          209,537          232,430                                                                          Non-Current
                          126,645           138,231                                                                               CLirrent
                          336,183           370,661                                        (discounted) Claims Outstanding for Liability
                          30,897           27,834                                                              Costs Handling Claims
                          305,286          342,827
                         (68,705)         (54,808)                                                            Value Present to Discount
                          373,991          397,635                                                                     Estimate Central
                         $'000            $,000
                         2008             2009                                                     Liability Claims Outstanding       (d)
                 10. Note Refer Commission. Insurance the by RiskCover to owed Note Promissory Rate Floating a by Represented
                                                                        Loss or Profit Through Value Fair at Assets Financial
                                                      class. Vehicle Motor the to attributable being million $0.5 negative balance
       the with Statement Income the in shown Adjustment Premium million $62.1 the of component major the was million $62.6
       of years these between movement Compensation Workers' The million). $3.6 of payable a (2008: million $59.0 of agencies
       client from receivable a was 2009 at class Compensation Workers' the for account to brought Adjustment Premium The
                                                                                                      performance. agency to applied
       be to sanctions enables and classes these for mechanism funding the of design conceptual the reflects process adjustment
       This year. cover each for develop these as outcomes income investment associated and expenses administration claims
       costs, claims ultimate the account into take to Vehicle Motor for year one and Compensation Workers' for period risk the
       of close tile after years (three date later a at adjustment to subject are premiums These deposits. premium represent classes
       Vehicle Motor and Compensation Workers the for year each of beginning the at agencies client to charged initially Premiums
                                                                                                           Adjustment Premium         (h)
                                                                                                    included. not is cost claims
       outstanding the on margin prudential A estimate. central net the at assessed actuarially been have which costs, claims
       on relies RiskCover classes, Vehicle Motor and Compensation Workers the for contributions deposit the determining When
                                                                                                              Revenue Premium         (a)
                                                                   STATEMENTS FINANCIAL RISKCOVER THE TO REFERENCES
                                             (continued) STATEMENTS FINANCIAL FUND RISKCOVER 40.
                         STATEMENTS HNANCIAL THE F S PART FORM)NG AND TO NOTES
II f   jt
       I
2OO   RItP0R ANNUAL                                                                       AUSTRALIA WESTERN OF ISSION 0MM
                                                                                                                                   AUDITED
                                                                                                                                     OAG  /
                                       claims. RiskCover to relation in off written amounts 468) $21 (2008: $Nil were there 2009, In
                                                                                                 Statement. Income the in
expense an as charged been not has debts these of write-off the consequently and measured reliably be not could recovered
be to amount the because revenue as account to brought been not have recoveries These obligations. their meet to debtor
the of ability the to regard with assessed are receivable recoveries Standards, Accounting Australian with accordance In
insured. the or party third   a   from paid claim a of costs the recover to seeks RiskCover where instances Irom arise Recoveries
                                                                                             Off Written Recoveries Claims          (e)
                                                                                                     class. each for settlement
to terms expected average weighted different the to due arise classes the between variations minor The year. each for rates
actual the of place in business of class each for shown is rate inflation wage and discount equivalent single a column, Years
"Subsequent the For years. financial 2008 and 2009 the of each in recoveries other and reinsurance and claims outstanding
long-tail both for same the are projections actuarial the in used rates inflation wage and discount future actual The
                              rates. inflation superimposed and wage the compounding by determined is rate inflation total The
       6.50               7.00               4.90              3.40                                              Rate Discount
       8.90               9.10               7.80              7.00                                             lnflation* Total
       4.00               4.00               4.00              4.00                                   Inflation Superimposed
       4.90               5.10               3.80              3.00                                     (Wage) Rate Inflation
                                                                                                                             Liability
       6.40               7.00               4.90              3.40                                             Rate Discount
       4.90               5.10               3.80              3.00                                             lnflation* Total
       4.90               5.10               3.80              3.00                                     (Wage) Rate Inflation
                                                                                                          Compensation Workers
      Years           3OJune2009           Years      3OJune2OlD
  Subsequent           Ending Year       Subsequent    Ending Year
              -
       2008       Used Rates %              -2009 Used Rates %
                                                                                                   RiskCover: for 2009 June 30
at recoveries other and reinsurance claims, outstanding long-tail for liability the measuring in used were rates following The
                                                                                                    Rates Discount and Inflation
                                                    (continued) STATEMENTS FINANCIAL RISKCOVER THE TO REFERENCES
                                          (continued) STATEMENTS FINANCIAL FUND RISKCOVER 40.
                    STATEMENTS HNANCAL THE OF PART FORMING AND TO NOTES
0000            NOTES TO AND FORMNG                               PAT OF THE   F)NANCAL STATEMENTS
     G)
 m
                40. RISKCOVER FUND FINANCIAL STATEMENTS (continued)
                REFERENCES TO THE RISKCOVER FINANCIAL STATEMENTS (continued)

                (f)      Credit Risk

            The following tables provide information about the quality of RiskCover's credit risk exposure in respect of reinsurance and other recoveries on claims already
            paid and on claims which remained outstanding at balance date, but no yet invoiced' or claimed from relevant parties. The analysis classifies the assets
            according to Standard and Foors counterparty credit ratings. AAA is the highest possible rating. Ratings that fell outside of the range AAA to BBB and those
            which cannot be reliably rated, such as estimates of unknown third party recoveries are classified as speculative grade. Input tax credits recoverable from the
            Australian Taxation Office have all been classified as AAA rating.

                                                                                                                 2009 ($000)
                                                                                                                                               Speculative
                                                                                AAA       AA+ to AA-          A+ to A-             BBB              Grade            Total
                  - Fire and General                                           3,019             699              664                               1480            5,862
                  - Workers     Compensation                                   1,960                                                                 7,570          9530
                  -   Public Liability                                         2,824                                              9,632              4633          17,089
            Total Reinsurance and Other Recoveries                             7,803             699              664             9,632            13,683          32,481


                                                                                                                 2008 ($000)
                                                                                                                                               Speculative
                                                                                AAA       AA-i- to AA-        A+ to A-             BBB             Grade             Total
                 - Fire and General                                            2824            2,576              950                                  714          7,064
                 - Workers Compensation                                        1,755                                                                 7,356          9,111
                 - Public Liability                                            2,538                                              1,454              2,923          6,915
           Total Reinsurance and Other Recoveries                              7,117           2,576              950             1,454            10,993          23,090




          11?     M('J       .AIcIr),)   WPTPPN   Al   TRA   IA                                                                                                               ANNUAL REPORT 2009
 C
OocO
                NOTES TO AND FORMNG PART OF ThE RNANCAL STATEMENTS

               40. RISKCOVER FUND FINANCIAL STATEMENTS (continued)
               REFERENCES TO THE RISKCOVER FINANCIAL STATEMENTS (continued)

               (f)   Credit Risk (continued)

               The following table provides further information regarding the ageing of amounts receivable for premium debtors, reinsurance and other recoveries on paid
               claims at the balance date:

                                                                                                        2009 ($000)
                                                                                          Past Due but Not Impaired
                                                              Neither Past
                                                                  Due nor         0to3          3to6           6to12      Greaterthan
                                                                 Impaired        Months        Months         Months            1   Year        Impaired          Total
                                                                     833            59                                1               5                            898


                                                                                                        2008 ($000)
                                                                             I
                                                                                          Past Due but Not Impaired                        I
                                                              Neither Past
                                                                  Due nor         Oto3          3to6           6to12      Greaterthan
                                                                 Impaired        Months       Months          Months            1   Year        Impaired          Total
                                                                      90                                            2                 9              -             101




       INJCI   RAJ(F CUMMLSSIflN fl WSTPRN     Al ISTRAI JA                                                                                                                ANNUAL REPORT 2009
                          ANNUAL                                                                   AUSTRALIA WESTERN OF COMMISSION CE
                                                                                                                                                 86sue
ci                                                                                                                                           AUDITED
                                                                                                                                               OAG       '
                                    897         773                                                              Equivalents Cash and Cash
                                                                                                follows: as Sheet Balance the in items related
                                                                                      the to reconciled is Statement Flow Cash the in shown
                                                                                        as year the of end the at Equivalents Cash and Cash
                                                                                                                     Cash of Reconciliation
                                   (22,549)     (67,940)                                         Activities Operating From Flow Cash Net
                                    23,425      22,893                                             Liability Claims Outstanding Non-Current
                                                -
                                   (33,198)                                                                            Payables Non-Current
                                    22,502      11,586                                                  Liability Claims Outstanding Current
                                   (359)        3,076                                                                      Payebles Current
                                                                                                         Liabilities in lncrease/(Decrease)
                                   (7,912)      (72,288)                                                           Receivables Non-Current
                                   670          (2,392)                                                                Receivables Current
                                                                                                             Assets in Decrease/(lncrease)
                                   (27,677)     (30,815)                                                                                 Loss
                                   $'OOO        $,000
                                   2008         2009
                                                                  Activities Operating from Flow Cash Net to Loss of Reconciliation        (h)
               336,182             66,876       86,759                56,273         126,274            Liability Claims Outstanding Total
               104,952              33,507      37,247                17126          17,072                               Liability Public -
               194,040              33,369      49,512                39,147         72,012                       Compensation Workers -
                                      -              -                    -                                                                -
               37,190                                                                37,190                             General and Fire
                                                                                                              Liability Claims Outstanding
               Total               Years 5      Years           Years               Year 1
                                   than More    5 to 2          2 Ito               than Less
                               I                          in Maturity
                                                  ($000) 2008
                370,661            72,740       101,978              64,995          130,948            Liability Claims Outstanding Total
                117,076             32,991      41,482                20,456         22,147                             Liability Public -
                216,755             39,749      60,496                44,539         71,971                      Compensation Workers -
                36,830                                                               36,830                           General and Fire -
                                                                                                              Liability Claims Outstanding
               Total               Years 5      Years                Years          Year 1
                                   than More    5   to   2           2   Ito        than Less
                               I                               in Maturity
                                                    ($'OOO)   2009
                                                                                                                          date: balance
               at liability claims outstanding discounted gross Funds RiskCover the of profile maturity the detail tables following The
                                                                                                                        Risk Liquidity    (g)
                                                              (continued) STATEMENTS FINANCIAL RISKCOVER THE TO REFERENCES
                                                    (continued) STATEMENTS FINANCIAL FUND RISKCOVER 40.
                              STATEMENTS FINANCAL THE OF PART FORMING AND TO NOTES
'.   ( J
     P-I   I
       REPORT ANNUAL                                                                   AUSTRALIA WFSTFRN OF COMMISSION     C   INS1JRA
                                                                                                                                    86
                                                                                                                          'AUDITED\
                                                                                                                                QAG ,'
Statements. Financial CIF's the ot part forming and to references the with conjunction in read he should Statement Income The
                                359             122                                                                     PROFIT
                                133             96                  (b)                                           Income Other
                                 226            26                                                   PROFIT UNDERWRITING
                                (80)           (39)                                   Expenses Administration and Underwriting
                                 94             50                                                          Incurred Claims Net
                                 94             50                                                              Expense Claims
                                 212            15                                                       Revenue Premium Net
                                 212            15                  (a)                                      Revenue Premium
                                $000           $000            References                     2009 June 30 ended year the for
                                2008           2009                                                    STATEMENT INCOME
 Fund. this of materiality the Mth commensurate disclosure of level a to restricted is here presented information The Contracts.
Insurance General 1023 AASB under required be would which disclosure of level full the meet however, not, do but Funds,
Administered for Finance and Treasury of Department the by required requirements disclosure the meet here presented
disclosures The Australia. Western of Government State the of behalf on administered is CIF the previously, stated As
                                               1. Note Refer statements. financial entity's economic the preparing in used those
with   consistent relevant, where are, statements financial CIF's the preparing in adopted policies accounting significant The
 Finance. and Treasury of Department the with arrangements current under equivalents tax income pay to liable not is CIF The
                                                                                                                          entity.
economic the of not and Australia Western of Government State the of asset an represents CIF the in earnings retained Any
                                       consolidated. not therefore are and entity economic the by owned not are assets CIF's The
                                claim. the process to Account Consolidated the from funding necessary the call will Commission
Insurance the emerge, claims future any that event the In Account. Consolidated Australia's Western of Government
State the to transferred was 2009, June 30 at CIF the of balance the date, balance to Subsequent community. the to cover
'affordable' offering now market insurance general the to due taken was decision This 2009. January 30 on expired policy
members existing last the and 2007 June 30 from effective members new to CIF the closed Australia Western of Government
State The Commission. Insurance the by managed is and Australia Western of Government State the by underwritten
is CIF The cover. insurance affordable obtain to Australia, Western in based organisations, community not-for-profit
incorporated assist to Australia Western of Government State the by established was (CIF) Fund Insurance Community The
                                       STATEMENTS FINANCIAL FUND INSURANCE COMMUNITY 41.
                    STATEMENTS FINANCIAL THE OF PART FORMING AND TO NOTES
 09   REPORT ANNuAL                                                                     AUSTRALIA WESTERN OF COMMISSiON NCE
                                                                                                                                 AUD!TED
                                                                                                                                     fOAG
                                                                                                         Statements. Financial
CIF's the of part forming and to references the with conjunction      in   read be should Equity in Changes of Statement The
                                 1,945          2,067                          PERIOD THE OF END AT EQUITY OF BALANCE
                                 1,945          2,067                                              Period the of End at Balance
                                 359            122                                                          Period the for Profit
                                 1,586          1,945                                              Period the of Start at Balance
                                                                                                        EARNINGS RETAINED
                                 1,586          1,945                       PERIOD THE OF START AT EQUITY OF BALANCE
                                                                                            2009 June 30 ended year the for
                                                                                       EQUITY IN CHANGES OF STATEMENT
      Statements. Financial CIF's the of part forming and to references the with conjunction in read be should Sheet Balance The
                                 1,945          2,067                                                           EQUITY TOTAL
                                 1,945          2,067                                                       Earnings Retained
                                                                                                                      EQUITY
                                 1,945          2,067                                                             ASSETS NET
                                 64                                                                        LIABILITIES TOTAL
                                 50                                                             Liabilities Non-Current Total
                                 50                                 (c)                           Liability Claims Outstanding
                                                                                                      Liabilities Non-Current
                                 14                                                                  Liabilities Current Total
                                 14                                                               Liability Premium Unearned
                                                                                                                   LIABILITIES
                                 2009           2,067                                                          ASSETS TOTAL
                                 2,009          2,067                                                   Assets Current Total
                                 2009           2,067                                             Equivalents Cash and Cash
                                                                                                               Assets Current
                                                                                                                        ASSETS
                                $000           $'OOO           References                                      2009 June 30 at
                                2008           2009                                                          SHEET BALANCE
                     (continued) STATEMENTS FINANCIAL FUND INSURANCE COMMUNITY 41.
                    STATEMENTS FINANCAL THE OF PART                                   FORMG           AND TO NOTES
          2 REPORT ANNUAL                                                                                                 -
                                                                                   AUSTRALIA WESTERN OF ISSION COMM   U       PA   U NS
                                                                                                                                   86
                                                                                                                      AUDITED
&
                                                                                                                        OAG
                                                                                                               Statements.
    Financial CIF's the of part forming and to references the with conjunction in read be should Statement Flow Cash The
                                 2,009                                                              YEAR THE OF
                                               2,067             (d)
                                                                           END THE AT EQUIVALENTS CASH AND CASH
                                1,834          2,009                                            YEAR THE OF START
                                                                                THE AT EQUIVALENTS CASH AND CASH
                                 175           58                (d)             Activities Operating From Flow Cash Net
                                               -
                                (9)                                                           Paid Tax Services and Goods
                                (81)          (39)                           Paid Expenses Administration and Underwriting
                                 133           96                                                        Received Interest
                                 132           1                                                       Received PremiLims
                                                                             ACTIVITIES OPERATING FROM FLOW CASH
                                $'OOO         $,000                                      2009 June 30 ended year the for
                                2008          2009                                            STATEMENT FLOW CASH
                        (continued) STATEMENTS FINANCIAL FUND INSURANCE COMMUNITY 41.
                      SIATEMFNTS FINANCIAL THE OF PART FORMING AND TO NOTES
    (.2
      J
    10
        REPORO9      AUAL                                                                       AUSTRALIA WESTERN OF OMMISSLON         NC   LU   INS
             ft                                                                                                                     AUDITED
    79                                                                                                                                OAG
                                        2,009           2,067                                                 Equivalents Cash and Cash
                                                                                                                        follows: as Sheet
                                                                                       Balance [he in items related the to reconciled
                                                                                      is Statement Flow Cash the in shown as
                                                                                      year the of end the at Equivalents Cash and Cash
                                                                                                                  Cash of Reconciliation
                                        175             58                                    Activities Operating From Flow Cash Net
                                       (92)            (50)                                      Liability Claims Outstanding Non-Current
                                       (123)           (14)                                                     Premium Unearned Current
                                                                                                      Liability Claims Outstanding Current
                                                                                                                         Payebles Current
                                                                                                                   Liabilities in Decrease
                                        34                                                                            Receivables Current
                                                                                                                      Assets in Decrease
                                        359             122                                                                          Profit
                                                             Activities Operating From Flow Cash Net to Profit of Reconciliation
                                        50
                                        50                                                                                    Non-Current
                                        -
                                                                                                                                  Current
                                        50                                                   (discounted) Claims Outstanding for Liability
                                                                                                              Value Present to Discount
                                        50                                                (undiscounted) Claims Outstanding for Liability
                                       $,000           $r000
                                       2008            2009                                        Liabilities Claims Outstanding
                                                                          bank. at held monies on earned interest to relates income Other
                                                                                                                      Income Other
                               internally. estimated are claims these All practical. not is costs claims assessing in involvement actuarial
        CIF, of size the to Due premiums. setting when considerations important were organisation the of practices management risk
        and history claims Previous potential. loss and exposures risk individual assessing by determined were CIF the for Premiums
                                                                                                                Revenue Premium
                                                STATEMENTS FINANCIAL FUND INSURANCE COMMUNITY THE TO REFERENCES
                            (continued) STATEMENTS FINANCIAL FUND INSURANCE COMMUNITY 41.
                          STATEMENTS NANCAL                            THE OF PART FORMING ND TO NOTES
 I) J
1QO
                                                        0
                              Australia Weslern of   AUDITED
                             Commission Iiisurance     OAG
Australia Western of Lommission isiurarice
 2009
  RMANCE
       2O   REPORT ANNUAL                                     AUSTRALIA WESTERN OF COMMISSION INSU1ANCE
                                                                                                            86
                                                                                                          AUDITED
                                                                                                           OAG
                                             2009. September 1 on passed Australia Western of
      Commission Insurance the of Commissioners of Board the of resolution a with accordance In
              2009 September 1                                                   2009 September 1
        DIRECTOR MANAGING                                                            CHAIRMAN
                  EVANS VIC                                                  WRIGHT E MICHAEL
                                   Commission. Insurance the of performance the represent fairly
                                                                               and Commission;
      Insurance the of performance the assess to users assisting for appropriate and relevant are
                                                                    records; proper on based are
                 2009: June 30 ended year financial the for Commission) (Insurance Australia Western
      of Commission Insurance the of Indicators Performance Key the that certify hereby We
                     INDICATORS PERFORMANCE KEY OF CERTIFICATION
8 J
      5664 9322 08 Fax:   7500 9222 08 Tel:   Australia Western 6005 Perth West Street Havelock 2 House Dumas Floor 4th
                                                                  1
                                                             of2 Page
                                        indicators. performance key and statements  financial the of
  users of decisions the affect adversely to enough significant omissions or errors identify
                                                                                             should
  procedures audit my However, transaction. every and evidence all examine not does audit
  an that recognises assurance" 'reasonable term The free. error is indicators
                                                                                  performance key
  and statements financial the in disclosure and amount every that guarantee not does audit An
                                                                                                        .
                                       FebO9.pdf. wa.gov.aulpubs/AuditPracStatement www.audit
  Refer statement. practice audit my in provided is approach audit my on information
  Further opinion. audit my for basis a provide to appropriate and sufficient is obtained
  have I evidence audit the that believe I evidence. audit the of samples selected testing by
  done was This audit. my on based indicators performance key and controls statements, financial
  the on opinion an express to is responsibility my 2006, Act General Auditor the by required As
                                                                          Role my of Summary
                                                                        law. written relevant other
  and 2006 Act Management Financial the with complying and circumstances; the in reasonable
  are that estimates accounting making policies; accounting appropriate applying and
                                                                                          selecting
  error; or fraud to due whether misstatement, material from free are that indicators
                                                                                      performance
  key and statements financial the of presentation fair and preparation the to relevant controls
  internal maintaining and establishing includes responsibility This indicators. performance key
  the and Instructions, Treasurer's the and Interpretations) Accounting Australian the (including
  Standards Accounting Australian with accordance in statements financial the of presentation
  fair and prepatation the and accounts, proper keeping for responsible is Commission The
  Indicators Performance Key and Statements Financial the for Responsibility Commission's
            efficiency. and effectiveness of indicators key of consist indicators performance key The
                                                                  Notes. explanatory other and
  policies accounting significant of summary a ended, then year the for entity consolidated the
  and Commission the of Statement Flow Cash and Equity in Changes of Statement Statement,
  Income the and 2009, June 30 at as Sheet Balance the comprise statements financial The
                           entity. consolidated the and Australia Western of Commission Insurance
  the of indicators performance key and controls statements, financial accounts, the audited have I
                                           2009 JUNTE 30 ENDED YEAR THE FOR
                    INDICATORS PERFORMANCE KEY AND STATEMENTS FINANCIAL
                              AUSTRALIA WESTERN OF COMMISSION INSURANCE
                                                                      Australia Western of Parliament the To
                                                                         OPINION AUDIT INiPEPENDENT
                                                 General Auditor
185
                                                    2 of 2 Page
                                                                                 2009 September 10
                                                                              GENERAL AUDITOR
                                                                                    URP COLIN
                                             2009. June 30 ended year the for performance
     indicated the represent fairly and performance Commission's the assess users help
     to appropriate and relevant are Commission the of indicators performance key the
                                                                            and provisions;
     legislative with accordance in been have liabilities of incurring the and property,
     of disposal and acquisition the money, of investment and expenditure receipt,
     the that assurance reasonable provide Commission the by exercised controls the
     Instructions; Treasurer's the and Interpretations) Accounting Australian the (including
     Standards Accounting Australian with accordance in are They date. that on ended
     year the for flows cash and performance financial their and 2009 June 30 at entity
     consolidated the and Australia Western of Commission Insurance the of position
     financial the fairly present and accounts proper on based are statements financial the
                                                                                      opinion, my In
                                                                                      Opinion Audit
          2009 June 30 ended year the for Indicators Performance Key and Statements Financial
                                                  Australia Western of Commission Insurance
;   13
      C
Cli   0
      rn
      0


             NSURANCE COMMISSON OF WESTERN AUSTRALIA

            The Insurance Commissions Key Performance Indicators assist in evaluating its performance in achieving both its stated mission and the achievement against higher level
            Government specified goals. This report includes our      v    .om. which are expressed in the form of key Effectiveness and Efficiency Performance Indicators. The
            Performance Indicators are first shown for the Insurance Commission as a whole and then for each business area.

            The Insurance Commissions specified desired Key Outcomes are listed in the table below showing the relationship to associated high level Government Goals.

                                                                                                                                           Service provided by the
                                   Government Goal                           Insurance Commission Key Outcomes                             Insurance Commission
                       Outcomes Based Service Delivery               Minimise the financial hardship of motor vehicle personal injury Timely, equitable and efficient claims
                                                                     claimants.                                                       management for motor vehicle personal
                       Greater focus on achieving results in key                                                                      injury claimants.
                       service delivery areas for the benefit of all Ensure that all Western Australian motor vehicles using public
                       Western Australians.                          roads are registered and insured.                                Provision of affordable premiums to
                                                                                                                                      owners of Western Australian registered
                                                                     Minimise the financial hardship of industrial disease claimants. motor vehicles.

                                                                                                                                  Timely, equitable and efficient claims
                                                                                                                                  management     for industrial disease
                                                                                                                                  claimants.

                       Financial and Economic Responsibility Promote and support the growth of risk management practice to RiskCover supports Western Australian
                                                             minimise the cost of risk to Government.                      Public Authorities in implementing their
                       Responsibly    managing       the    State's                                                               risk management. RiskCover's insurance
                       finances through the efficient and effective                                                               and risk management services, support
                       delivery    of   services,     encouraging                                                                 and advice, have directly minimised the
                       economic activity and reducing regulatory                                                                  cost of risk for the Government of
                       burdens on the private sector.                                                                             Western Australia.

            The Performance Indicators relating to the Insurance Commission's outcomes are audited by the Office of the Audito General. The Performance Indicators of he Insurance
            Commission's subsidiary, the State Government Insurance Corporation, are disclosed in its Annual Report. Other important indicators providing a broader perspective of the
            Insurance Commission's performance are included in the Review of Operations section of the Annual Report. Where appropriate, prior years' figures have been re-stated in
            order to enhance comparability with those of the current year.

                                             better than target
                                             on target
                                             worse than target




           INSURANCE COMMISSION OF WESTERN AUSTRALIA                                                                                                                  ANNUAL REPORT 2009
  NSURANCE COMMSSON
 That The Insurance Commissions Revenue Is Sufficient To Meet Its Expenditure
 Effectiveness Performance Indicators                                                                        Profiti(Loss) Before Income Tax Equivalent (Expense/Benefit)
                                                                                                          110 -               to Net Premium Revenue (%)
   P rofit/(Loss)   Before Income Tax Equivalent (Expense)IBenefit
                                                                                                           80 -
  to Net Premium Revenue indicates the return the Insurance
                                                                                                           50 -
  Commission has earned on its net premium revenue.                                                of
                                                                                                   /0
                                                                                                           20   -
                                                                                                          -10   -
                                                                                                          -40   -
                                           2009                                                           -70
                                  Target          Actual                                                            2005       2006        2007          2008           2009
 Insurance Commission              3.4%           -63.1%                                       C ommiss ion         60.9       68.4         97.5        (19.1)         (63.1)
 Third Party Insurance Fund        2.6%           -58.0%                                   -TPIF                    73.3       70.2         98.1        (19.7)         (58.0)
 Comments The Insurance Commission indicator was worse than target, due to an unexpected loss of $240.2 million, being $253.2 million (1947.1%) worse than the targeted
 Profit of $13.0 million. This was due to a net investment loss of $224.4 million which was $368.3 million (255.9%) worse than target. This was partially offset by finance costs
 which were $62.9 million (290.3%) better than target, net claims incurred which were $20.4 million (4.8%) better than target and other income was $30.0 million (112.1%) better
 than target. The Third Party Insurance Fund was also worse than target with a loss of $220.5 million, being $230.5 million (2299.1%) below the targeted Profit of $10.0 million.
 This was due to net investment income being $259.7 million (250.2%) below target. This was partially offset by net claims incurred being $25.3 million (6.0%) better than target,
 underwriting and administration expenses being $2.3 million (6.0%) better than target and acquisition costs $1.5 million (12.0%) better than target.


  Profit/( Loss) Before Income Tax Equivalent (Expense)/Benefit                                            Profitl(Loss) Before Income Tax Equivalent (Expense)/Benefit
  to Total Revenue indicates the return the Insurance Commission                                                               to Total Revenue (%)
  has earned on its total revenue (including investment revenue).                                           50 -
                                                                                                            20 -
                                                                                                           -10 -
                                                                                                    0/
                                                                                                     /0
                                                                                                           -40 -
                                                                                                           -70
                                           2009                                                           -100 -
                                                                                                                    2005       2006         2007         2008           2009
                                  Target          Actual
 Insurance Commission             2.2%                                                          Commission          31.9       32.9          38.5        (21.1)         (99.3)
                                              -99.3%       4
 Comments: This indicator is worse than target due to the unexpected loss of $240.2 million, being $253.2 million (1947.1%) worse than the targeted Profit of $13.0 million.
 This was due to a net investment loss of $224.4 million which was $368.3 million (255. 9%) worse than target. This was offset by finance costs which were $62.9 million
 (290.3%) better than target, net claims incurred which were $20.4 million (4.8%) better than target and other income was $30.0 million (112.1%) better than target. Total
 Revenue of $241.6 million was $348.4 million (59.0%) worse than the target of $590.1 million, which was due to investment revenue (including movements in fair value) being
 $383.3 million (212.4%) worse than budget, offset by other income being $27.2 million (92.7%) better than target.




INSURANCE COMMISSION OF WESTERN AUSTRALIA                                                                                                                         ANNUAL REPORT 2009
 Effectiveness Performance Indicators (Continued)

  Niet Operating Cash Inflow equals receipts less payments from the                                                          Net Operating Cash Inflow ($M)
  operating activities of the Insurance Commission. It excludes cash
                                                                                                         200
  flows from investing activities. Refer to the Statement of Cash Flows
  - Net Cash F/ow from Operating Activities.                                                             150
                                                                                                   $M
                                                                                                         100

                                                                                                          50

                                          2009                                                                0
                                                                                                                   2005        2006         2007            2008          2009
                                 Target          Actual
 Insurance Commission ($M)        89.2           163.1                                          Commission         60.0        30.3          34.9          204.0          163.1
                                                           IL


 Comments: The "net operating cash inflow" is $73.9 million (82.8%) betfr than target. This variance was partly due the interest paid to RiskCover being $58.1 million
 (268.3%) better than target where the Insurance Commission charged RiskCover an investment expense of $36.5 million in lieu of a positive investment return. Cash flow
 income from investments was $48.7 million (37.1%) better than target. Reinsurance and other recoveries received were $4.9 million    (1 38.0%)   better than target. This was offset
 by the payment of income tax equivalent being $38.3 million (153.2 %) worse than target.



  Return on Total Assets is calculated as the Insurance Commissions                                                            Return on Total Assets (%)
                                                                                                         15
  operating profit/loss before income tax expense divided by its
  average total assets and is expressed as a percentage (total assets                                    10
  excludes the Right of Indemnity asset from WorkCover WA (refer
  Note 9 to the Financial Statements).                                                                    5
                                                                                                  0/
                                                                                                   /0
                                                                                                          0

                                                                                                         -5

                                          2009                                                          -10
                                                                                                                  2005        2006         2007            2008          2009
                                 Target          Actual
                                                                                              Commission          11.2        11.3         13.4            (2.5)         (9.1)
Insurance Commission              0.5%           -9.1%

Comments       The "return on total assets" is below target due to an unexpected loss of $240.2 million, being $253.2 million (1947.1%) worse than the targeted Profit of $13.0
million. This was due to a net investment loss of $224.4 million which was $368.3 million (255.9%) worse than target. This was partially offset by finance costs were $62.9 million
(290.3%)betterthan target, net claims incurred which were $20.4 million (4.8%) beterthan target and other incomewas $3Q.0 million (112.1%) betterthan target. Average
Total Assets (less the WorkCover WA indemnity) were $2.627 billion, which was $146.3 million (5.3%) worse than the target of $2.774 billion.




INSURANCE COMMISSION OF WESTERN AUSTRALIA                                                                                                                          ANNUAL REPORT 2009
 Effectiveness Performance Indicators (Continued)

                                                                                                                          Investment Income Rate of Return (%)
 Investment Income Rate of Return for the Insurance Commission                                            30
 provides the percentage rate of return (excluding income received                                        25
 from investments previously writtenoff) on its weighted average
                                                                                                          20
 investment assets. This calculation includes noninvestment
 property net income.                                                                                     15
                                                                                                    %     10
                                                                                                           5
                                                                                                           0
                                                                                                           -5
                                            2009                                                         -10
                                                                                                                 2005        2006         2007          2008          2009
                                 Target            Actual
 Insurance Commission                5.4%          -7.3%                                    Commission            14.0        18.9        24.6          (0.3)         (7.3)


 Comments: The "investment income rate of return" for 2009 was negative 7.3% which was 12.7 percentage points worse than the 5.4% target. The extreme volatility in
financial markets over the year was reflected in the variations of each asset class return from target. The performance of Global Shares, Australian Shares, Alternatives Assets
and Property were worse than target by 26.5%, 22.0%, 16.3% and 9.6% respectively. The negative returns from these asset classes was further impacted by the Cash return
which was 3.6% worse than target. Global Fixed Interest and Australian Fixed Interest were the only asset classes to deliver better than target returns of 10.9% and 0.7%
respectively. Whilst the total return was disappointing in absolute terms, it however compared favourably relative to peer funds with the Mercer Pooled Fund survey reporting a
median return of negative 12.5% for the year.

Efficiency Performance Indicators

 Ratio o Investment Administration Expenses to Average                                                           Ratio of Investment Administration Expenses to Average
 Investment Assets is a useful measure of the Insurance                                                                           Investment Assets (%)
 Commission's      efficiency   in      managing           its   investments.                           0.80 -
 Noninvestment property assets are included         in the calculation.
                                                                                                o       0.60-
                                                                                                 /0

                                                                                                        0.40 -


                                            2009                                                        0.20
                                                                                                                 2005        2006         2007         2008           2009
                                Target         Actual
                                                                                            Commission           0.36        0.77         0.69          0.58          0.45
Insurance Commission             0.50%             0.45%         t
Comments: The "ratio of investment administration expenses to average investment assets" of 0.45% for the year was better than target due to Investment Manager
performance fee rebates.




NSURANCE COMMISSON OF WESTERN AUSTRALLA                                                                                                                         ANNUAL REPORT   2009
 Efficiency Performance Indicators (Continued)


 Net Loss Ratio indicates whether or not net premium revenue is                                                                     Net Loss Ratio (%)
 sLifficient to meet net claims incurred. Where net claims incurred is
 greater than net premium revenue the ratio will be higher than 100%.                                 110    -
 Net claims incurred equals claims expense, less reinsurance and                                      105    -
 other recoveries revenue.                                                                            100    -
                                                                                                 a     95    -
                                                                                                 /0    90    -
                                                                                                       85    -
                                                                                                       80    -
                                                                                                       75    -
                                                                                                       70
                                         2009                                                                    2005       2006          2007           2008          2009
                                Target          Actual
 Third Party Insurance Fund     111.4%          104.8%                                                TPIF       77.0        96.8          99.6          90.7          104.8
                                                          f
Comments: The "net loss ratio" is favourable compared to target due principally to a favourable result for net claims incurred, which was $25.3 million better than target. This
resulted from a better than target movement in net outstanding claims proviit'($25 million better than target) whilst claims payments and net premium revenue were
approximately in line with target.


  Net Expense Ratio shows the percentage of underwriting and                                                                   Net Expense Ratio (%)
  administration expenses against net premium revenue. Total
  administration expenses include amounts relating to claims                                           10    -
  management as well as non-claims administration tasks, such as                                        9-
  policy processing and corporate overheads, but does not include
  sponsorship of road-safety-crash prevention or debt recovery
                                                                                                        8-
  costs.                                                                                                7-
                                                                                                        6-
                                         2009                                                           5
                                                                                                                 2005       2006          2007           2008         2009
                                Target          Actual
Third Party Insurance Fund       9.7%           9.4%                                                  TPIF       7.0         6.8           8.2           8.4           9.4
                                                         t
Comments: The "net expense ratio" is better than target due to better than anticipated underwriting and administration costs (approximately $1.2 million better than target)
whilst net premium revenue was approximately in line with target.




INSURANCE COMMISSION OF WESTERN AUSTRALIA                                                                                                                       ANNUAL REPORT 2009
 C
ODO
 rn
           Efficiency Performance Indicators (Continued)


           Net Investment Ratio represents net investment income as a                                                                    Net Investment Ratio (%)
           percentage of net premium revenue.
                                                                                                                110   -
                                                                                                                 90   -
                                                                                                                 70   -
                                                                                                          0,     50   -
                                                                                                           10
                                                                                                                 30
                                                                                                                 10   -
                                                                                                                -10 -
                                                                                                                -30 -
                                                  2009                                                          -50 -
                                                                                                                          2005         2006         2007          2008          2009
                                        Target           Actual
       Third Party Insurance Fund       27.3%          -41.0%                                                   TPIF      58.4         79.6         109.0        (21.8)        (41.0)

       Comments: The "net investment ratio" is significantly worse than target, due to a negative 7.3% investment return. This was 12.7 percentage points worse than the 5.4%
       target. The extreme volatility in financial markets over the year is reflected ih'tHèvariations of each asset class return from target. The performance of Global Shares, Australian
       Shares, Alternatives Assets and Property were worse than target by 26.5%, 22.0%, 16.3% and 9.6% respectively. The negative returns from these asset classes was further
       impacted by the Cash return which was 3.6% worse than target. Global Fixed Interest and Australian Fixed Interest were the only asset classes to deliver better than target
       returns of 10.9% and 0.7% respectively. Whilst the total return was a disappointing outcOme in absolute terms, however it compared favourably relative to peer funds with the
       Mercer Pooled Fund survey reporting a median return of negative 12.5% for the year.




      I!       rkF I MMIVThJ fl \NTIPN      A L   TRAI IA                                                                                                              ANNUAL REPORT 2009
 C
0009
 rn
.0z
        Third Party Insurance Fund
        The Third Party Insurance Fund issues and undertakes liability under policies of insurance as required by the Motor Vehicle (Third Party insurance) Act 1943. In accordance
        with this Act, the owners and drivers of 2.3 million Western Australian registered vehicles (which includes caravans and trailers) are provided with unlimited indemnity against
        injury claims resulting from motor vehicle accidents under the Compulsory Third Party (Personal Injury) Insurance scheme.
        (a) That The Funds Revenue Is    Sufficient To Meet Its Expenditure (refer Insurance Commission Indicators for this outcome)
        (b'i   Ensure That All Western Australian Motor Vehicles Using Public Roads Are Registered And Insured
        Effectiveness Performance Indicators
                                                                                                                               Proportion of Third Party Claims Involving Unregistered
         The Proportion of Third Party Claims Involving Unregistered
                                                                                                                                                  Motor Vehicles (%)
         Motor Vehicles measures the number of claims received involving
         unregistered motor vehicles compared to the total number of claims                                       0.80 -
         received                                                                                                 0.60 -
                                                                                                           0/
                                                                                                            /0    0.40 -

                                                                                                                  0.20 -

                                                  2009                                                            0.00
                                                                                                                               2005        2006       2007        2008        2009
                                         Target          Actual
       Third Party Insurance Fund        0.00%           0.32%                                                     TPIF        0.46        0.25       0.65        0.68         0.32


       Comments: The "proportion of third party claims involving unregistered motor veh:icles" is unfavourable compared to target. The number of claims involving unregistered
       motor vehicles in 2009 (9) was however considerably better than 2008 (19) whilst the number of new claims received for this accident year was comparable to the previous year
       (2,819 for 2009 compared to 2,814 in 2008). This resulted in an overall reduction for 2009(0.32%) compared to 2008(0.68%).

        Efficiency Performance Indicators
        Underwriting and Administration Costs to the Number of                                                              Underwriting and Administration Costs to the Number of
        Registered Vehicles measures the cost of administering the TPIF                                          17.0   -                   Registered Vehicles ($)
        per registered vehicle in Western Australia. Accident prevention and                                     16.0
                                                                                                                 15.0   -
        debt recovery costs are exciuded from this calculation.
                                                                                                                 14.0   -
                                                                                                           $
                                                                                                                 13.0   -
                                                                                                                 12.0   -
                                                                                                                 11.0   -
                                                  2009                                                           10.0
                                                                                                                              2005       2006        2007        2008        2009
                                         Target          Actual
                                                                                                                 TPIF         12.30      11.98       13.51       13.64       15.73
       Third Party Insurance Fund        $16.28          $15.73    t
        Comments: "Underwriting and administration costs to the number of registered vehicles" is favourable compared to target due to underwriting and administration costs
        being approximately $1.2 million better than target, whilst vehicle growth for the year was only marginally below target (3.6% actual compared to a target of 4%).



       INSI IRANCE COMMiSSiON OF WESTERN AUSTRALIA                                                                                                                       ANNUAL REPORT 2009
  c) Minimise The Financial Hardship Of Motor Vehicle Personal Injury Claimants

 Effectiveness Performance Indicators                                                                                    Average Number of Years to Claims Payment
                                                                                                         4.6 -
  The Average Number of Years to Claims Payment represents the
  payments made on claims in a year multiplied by the weighted
  average time since the accident year. This Performance Indicator                                       4.4 -
  relates to long-tail classes of insurance. It is calculated exclusive of                      Years
  payments made during a year in respect of claims incurred during the
                                                                                                         4.2 -
  current accident year.


                                             2009                                                        4.0
                                                                                                                  2005         2006          2007          2008          2009
                                    Target          Actual
 Third Party Insurance Fund           4.1             4.0                                                TPIF      4.2          4.2           4.1           4.5           4.0
                                                             t
 Comments: The "average number of years to claims payment" is broadly          in line with   target and reflects the fact that the actual proportion of claims payments for each
 accident year is comparable to target, albeit with some minor differences between years.



  The Number of Outstanding Claims as at year-end (accidents from                                                           Number of Outstanding Claims
  all years).                                                                                       8,400 -
                                                                                                    8,200 -
                                                                                                    8,000 -
                                                                                                    7,800   -
                                                                                                    7,600   -
                                                                                                    7,400   -
                                                                                                    7,200   -
                                             2009                                                   7,000
                                                                                                                 2005         2006          2007          2008          2009
                                    Target          Actual
 Third Party Insurance Fund          7,386          7,300                                               TPIF     8,259        7,911         7,579         7,631         7,300
                                                             f
 Comments: The "number of outstanding claims" is better than target with 331 less claims outstanding at 30 June 2009 than at 30 June 2008. This results from a higher than
 forecast number of claim closures (4,409 actual compared to a target of 4,137) which more than offset a higher than forecast number of new claims received during the year
 (4,078 actual compared to 3,918 target).




wcu JpAllr   cr)MMPRSInN r.F lA/PRTFN Al l.cTRAI IA                                                                                                               ANNUAL REPORT 2009
Effectiveness Performance Indicators (Continued)
                                                                                                               Proportion of Claims Costs Paid      for the Direct Benefit   of
  The Proportion of Claims Costs Paid for The Direct Benefit of                                        95.0    -                      Claimants (%)
  Claimants reflects the TPIFs effectiveness in minimising the                                         93.0
  financial hardship of claimants. This measure excludes costs such
                                                                                                0/     91.0
  as Legal and Investigation costs ordinarily incurred in the                                    /0
  management of a claim.                                                                               89.0
                                                                                                       87.0
                                                                                                       85.0
                                            2009                                                                   2005        2006         2007            2008         2009
                                   Target           Actual
Third    Party   Insurance Fund    85.0%            89.0%                                               TPIF       86.7        87.0          89.0           93.1         89.0
                                                             t
Comments: The "proportion of claims costs paid for the direct benefit of claimants" is favourable compared to target. Total claims payments for the year were $325
million, of which, approximately $288 million (89%) was paid for the direct benefit of claimants by way of pecuniary and non-pecuniary losses. Of the $288 million, approximately
$205.2 million (71%) was paid for general damages, past and future economic loss, future medical expenses and past and future care and services.


Efficiency Performance Indicators
                                                                                                                           Claims Administration Costs
                                                                                                      2,200 -
  The Claims Administration Costs per Claim Administered
  indicates the efficiency of claims administration as an average of the                              2,000 -
  total Administration Costs divided by the number of claims                                          1,800 -
  administered in the period. Accident prevention and commissions                                                          1:la1mAdmmn5tered($,
                                                                                               $      1,600 -
  paid for premium collection are excluded from this calculation. Debt
  recovery costs are also excluded.                                                                   1,400 -
                                                                                                      1,200 -
                                                                                                      1,000
                                            2009                                                                   2005        2006         2007            2008         2009
                                   Target           Actual
                                                                                                        TPIF       1,159      1,225         1,411           1,686        2,119
Third    Party   Insurance Fund    $2,124           $2,119   t
Comments: "Claims administration costs per claim administered" is better than target as a result of a higher than target number of claims administered (11,709 actual
                  11,523) and marginally lower than budget administrtion costs (approximately $0.3 million better than target).
compared to a target of




,,(?   oMrIr rn AICjM (      MJrQ7IrPM 1i   'TPAI   LA                                                                                                              ANNUAL REPORT 2009
 c
c000
 rn


       Efficiency Performance Indicators (Continued)

        The Number of Claims Administered per Full-time Employee                                                                     Number of Claims Administered per
        provides a measure of efficiency of the operation of the Fund, by                                                                   Full-time Employee
                                                                                                               130.0 -
        measuring the volume of claims handled by all staff directly and
                                                                                                      (0
        indirectly involved in the claim management activities.                                       E        120.0 -

                                                                                                     0         110.0 -
                                                                                                     4-
                                                                                                      0
                                                                                                      a        100.0
                                                                                                     z
                                                 2009                                                           90.0
                                                                                                                             2005       2006        2007       2008               2009
                                        Target          Actual
       Third Party Insurance Fund           94           100                                                    TPIF         123         125        111         103                100
                                                                  t
       Comments: Number of claims administered per full-time employee" is better than target due to a higher than target number of claims administered (11,709 actual
       compared to a target of 11,523) and a lower number of full-time equivalent empyees (FTE) resulting from a number of positions which remained unfilled at year-end.



        Claims Administration Costs as a Ratio of Gross Claims Paid                                                                     Claims Administration Costs as a
        indicates how efficient the TPIF is in administering claims compared                                      8_O    -               Ratio of Gross Claims Paid (%)
        to the overall claims cost. Accident prevention and commissions paid                                      7.0 -
        for premium collection are excluded from this calculation. Debt
        recovery costs are also excluded.                                                                  %      6.0 -

                                                                                                                  5.0 -

                                                                                                                  4.0
                                                 2009                                                                         2005       2006        2007       2008               2009
                                        Target          Actual
                                                                                                                  TPIF        5.9         5.2         5.9        6.7                   7.6
       Third Party Insurance Fund        7.6%           7.6%

       Comments: "Claims administration costs as a ratio of gross claims paid" is marginally worse than target. Whilst claims payments are approximately $2.1 million worse
       than budget (actual for 2009 was $325 million compared to target of $322.9 million) this was offset by claims administration costs which were better than target by $0.3 million.




                                                                                                                                                                         AiIMl   101   PIPnPT 9nflq
C

m
0
    RSKCOVER

    As from 1 July 1997, the Government of Western Australia adopted a Managed Fund approach to administer all insurable risks of its public authorities on a self-insurance basis.
    The RiskCover Fund is underwritten by the Crown and is managed by the Insurance Commission on behalf of the State Government and its participating public authorities. The
    Department of Treasury and Finance supervises the activities and performance of the Insurance Commission in the management of the RiskCover Fund. The Insurance
    Commission earns a management fee from this activity equivalent to the proportion of the Insurance Commission's services used by RiskCover.


    RiskCover's assets are not owned by the Insurance Commission and are therefore not consolidated. The investment assets of RiskCover are, however, included in the
    investment pooi of the Insurance Commission represented by a Floating Rate Promissory Note (Refer Note 10 to the Financial Statements). Any accumulated deficit in
    RiskCover represents a liability of the Government of Western Australia and not of the Insurance Commission.


    (a) Meet Customer Risk Management And Seif-insurance Needs

    Effectiveness Performance Indicator
                                                                                                                        Customer Satisfaction Survey Score (%)
                                                                                                        100.0
     Each year RiskCover conducts a survey of its Public Authority
     customer base. The Customer Satisfaction Survey Score is the                                        99.0
     percentage of those respondents to the survey who rated
     RiskCover's performance as either good, very good or excellent.                                     98.0
                                                                                               0-
                                                                                                ,0
     This indicator provides the average customer satisfaction result                                    97.0
     from the survey.
                                                                                                         96.0
                                                                                                         95.0
                                                  2009                                                           2005          2006        2007         2008          2009
                                       Target            Actual
                                                                                                     RiskCover   96.0          99.3        97.0          96.5         96.5
                       RiskCover       97.5%             96.5%    4

    Comments: The RiskCover Division has continued to rate highly in customer satisfaction though this years result is 0.5 % slightly worse than the previous year. Feedback from
    the survey will be analysed to determine appropriate action to restore and improve on the level of customer satisfaction.




        Ar,Jr'   c'r         nI    A/ITPPI   1!   TPA    IA                                                                                                     ANNUAL REPORT 2009
Effectiveness Performance Indicator (Continued)
                                                                                                                    Claimant Satisfaction Survey Score (%)
  RiskCover conducts a survey of claimants who received services from                               80.0 -
  RiskCover. The Claimant Satisfaction Survey Score is the                                          75.0 -
  proportion of claimants, who dealt directly with RiskCover, that were                             70.0 -
  satisfied or very satisfied with the level of service provided by
                                                                                                    65.0 -
  RiskCover as per the independent survey conducted.
                                                                                                    60.0 -
                                                                                                    55.0 -
                                                                                                    50.0
                                                 2009                                                         2005          2006          2007        2008         2009
                                     Target              Actual
                    RiskCover         77.0%              75.0%                                 RiskCover      57.7          70.3          71.0        75.0          75.0
                                                                  +

Comments: This years result in claimant satisfaction was the same as the 2008 result, with 75% being very satisfied with RiskCovers overall level of service. RiskCover will
endeavour to build on the result by working in partnership with client agencies and using the feedback from the survey, to ensure claimants continue to receive a satisfactory
level of service.


Efficiency Performance Indicators


                                                                                                                                   Net Assets ($M)
 Net Assets reflects the financial position of RiskCover at the end                                160 -
 of the period and its ability to maintain a suitable reserve for future                           140 -
 use.
                                                                                                   120
                                                                                                   100 -
                                                                                                    80 -
                                                                                                    60 -
                                                                                                    40 -
                                                                                                    20
                                                 2009                                                        2005         2006           2007        2008         2009
                                     Target              Actual
                                       74.7               49.9                               RiskCover       57.9         117.1         150.4        102.5        49.9
                  RiskCover ($M)

Comments: "Net Assets" are significantly under target as a result of the net investment loss of $36.5 million which was $58.2 million worse than the net investment income
target of $21.7 million.




MQI     Mr   rr    AAJ'Q:rrj rIZ \A/FTPRN   l   I.TPAI   IA                                                                                                  ANNUAL REPORT 2009
'
    c   \
o,) m
            Efficiency Performance Indicators (Continued)

             The Expense Performance Target compares the total RiskCover                                                                       Expense Performance Target (%)
             Management Fee to that benchmarked by the WA Treasury. It                                             16.0   -
             compares the management cost of RiskCover as a percentage of                                          15.0 -
             total Fund Contributions.
                                                                                                                   14.0   -
                                                                                                             %     13.0 -
                                                                                                                   12.0 -
                                                                                                                   11.0 -

                                                       2009                                                        10.0
                                                                                                                                2005           2006        2007         2008          2009
                                              Target          Actual
                            RiskCover         15.2%           15.4%                                          RiskCover           10.5           10.6        12.1        14.0          15.4

            Comments: The actual result of 15.4% was slightly higher than target of 152%. This was due to increases           in the   RiskCover Management fee with regards to Salaries and
            Agency and Temporary staff expenses.



             Net Investment Ratio represents net investment income as a                                                                          Net Investment Ratio (%)
             percentage of contributions collected.                                                                90.0
                                                                                                                   70.0
                                                                                                                   50.0

                                                                                                             %     30.0
                                                                                                                   10.0
                                                                                                                  -10.0
                                                                                                                  -30.0
                                                       2009                                                                      2005           2006        2007        2008           2009
                                             Target       Actual
                                                                                                             RiskCover           45.8           71.3        76.4        (10.0)        (18.6)
                            RiskCover         15.3%       -18.6%        4,


             Comments: The "net investment ratio" is below target due to the1nrance Commission experiencing a negative 7.3% investment return of in 2009, which was 12.7
            percentage points worse than the 5.4% target. The extreme volatility in financial markets over the year is reflected in the variations of each asset class return from target. The
            performance of Global Shares, Australian Shares, Alternatives Assets and Property were worse than target by 26.5%, 22.0%, 16.3% and 9.6% respectively. The negative
            returns from these asset classes was further impacted by the Cash return which was 3.6% worse than target. Global Fixed Interest and Australian Fixed Interest were the only
            asset classes to deliver better than target returns of 10.9% and 0.7% respectively. Whilst the total return was a disappointing outcome in absolute terms, however it compared
            favourably relative to peer funds with the Mercer Pooled Fund survey reporting a median return of negative 12.5% for the year.




        NSIJRAN(E r.OMMISSJON OF WESTERN AUSTRALIA                                                                                                                               ANNUAL REPORT 2009
  (b) Promote And Support The Growth Of Risk Management Practice To Minimise The Cost Of Risk To Government

  Effectiveness Performance Indicator

    The Risk Management Performance Score indicates the average                                                                                  Risk Management Performance Score
                                                                                                                               20 -
    score resulting from the risk management practices survey which is
    conducted annually. The maximum score achievable is 20.
                                                                                                                               15 -

                                                                                                                               10 -

                                                                                                                                5-
                                                                                                                                0
                                                          2009                                                                          2005        2006             2007    2008         2009
                                             Target              Actual                                                                  14          14
                                                                                                                       RiskCover                                      14      15            15
                        RiskCover              15                   15


  Comments: Targeted result of 15 out of 20 was achieved. RiskCover continues to work extensively with agencies to improve their risk management practices.



    The Workers' Compensation Claims Incurred per $100 Wage Roll                                                                    Workers Compensation Claims Incurred per $100 Wage Roll
    indicator shows how effective the RiskCover Division is in keeping                                                         1.30
    the cost of Workers Compensation claims to a minimum. The ratio is
    expressed as the cost per $100 of wage roll declared by the State
    Government agencies included in the RiskCover Scheme.                                                                $     1.20 -


                                                                                                                               1.10 -

                                                          2009                                                                 1.00
                                                                                                                                         2005        2006            2007    2008          2009
                                             Target              Actual
                        RiskCover             $1.10              $1.24                                                   RiskCover       1.07         1.10            1.25   1.20          1.24


 Comments: The result is due to large increases                          in   net incurred claims, as well as a 21% increase in payments from the 2009 claim year.




IhIflI   lflhJ,lr'lr r.ruAflA,00,rm, f1C 4/CQT011   Al   lQtAl IA                                                                                                                   ANNUAL REPORT 2009
     Effectiveness Performance indicator (Continued)


       This indicator demonstrates RiskCovers success rate in introducing                                                    Number of Large and Medium Agencies practising Strategic
       and implementing the principles and benefits of Strategic Risk                                                 35 -                      Risk Management
       Management practices in the larger WA State Government                                                         30
       agencies.                                                                                           ci,
                                                                                                                      25 -
                                                                                                           E
                                                                                                           z          20
                                                                                                                      15 -

                                                                                                                      10
                                                   2009                                                                         2005        2006       2007          2008          2009
                                          Target          Actual
                                                                                                            RiskCover            18         23           21           30            33
                        RiskCover            21                33
                                                                      t
     Comments: This year has seen a significant increase            in the number   of agencies practising strategic risk management. A significant amount of effort has been put into this area
     and the benefits are starting to show.

     Efficiency Performance Indicators
      The Expense Performance Target compares the total RiskCover                                                                         Expense Performance Target (%)
      Management Fee with that benchmarked by the WA Treasury. It
      compares the management cost of RiskCover as a percentage of
      total Fund Contributions.
                                                                                                                 01
                                                                                                                 ,0




                                                   2009                                                                         2005       2006        2007          2008          2009
                                          Target          Actual
                        RiskCover         15.2%           15.4%                                             RiskCover           10.5        10.6        12.1          14.0          15.4
                                                                      3

     Comments: The actual result of 15.4% was slightly higher than target of 15.2%. This was due to increases in the RiskCover Management fee with regards to Salaries and
     Agency and Temporary staff expenses.




r.




     Ml lPANlfl   C   lAr/fliON flP \A/FSTFPN Al JSTRAI   IA                                                                                                                 ANNUAL REPORT 2009
 COMPENSATION (INDUSTRIAL DISEASES) FUND
 To Minimise The Financial Hardship Of Industrial Disease Claimants

 Effectiveness Performance Indicators


   The Number of Outstanding Claims as at year-end (accidents                                                                  Number of Outstanding Claims
   from all years).                                                                                      60    -

                                                                                              E          50-
                                                                                                         40-
                                                                                              0
                                                                                                         30-
                                                                                                         20
                                                        2009                                                         2005        2006       2007        2008          2009
                                         Target                Actual
                        C(ID)F                33                                                       C(ID)F         28          33         53          54            22
                                                                   22   t
Comments: As the latency of development of Industrial Disease claims is over a number of decades and the number of incidents being relatively small, an accurate prediction
of the number of outstanding claims at the end of any one year is problematic. The 2009 result is due to less new claims being reported during the period.



   The Ratio of Outstanding Claims to Claims Administered show                                                     Ratio of Outstanding Claims to Claims Administered (%)
   how effectively claims are managed and finalised for the best                                       100.0
   outcome for all parties.                                                                             80.0

                                                                                                        60.0
                                                                                               0l
                                                                                                  JO
                                                                                                        40.0
                                                                                                        20.0

                                                        2009                                             0.0
                                                                                                                      2005       2006        2007        2008         2009
                                         Target                Actual
                        C(ID)F           64.7%                 56.4%                                   C(ID)F         48.3       82.5        79.1        73.0          56.4
                                                                        t
Comments: As the latency of development of Industrial Disease claims is over a number of decades and the number of incidents being relatively small, an accurate prediction
of the number of outstanding claims at the end of any one year is problematic. The 2009 result is due to less new claims being reported during the period.




,IQW.Ir'Aisir'   crAr,tlQQIOM   !   A/QTJPt        I   lTPP    L                                                                                                ANNUAL REPORT 2009
 Efficiency Performance Indicator


   The Claims Administration Costs per Claim Administered                                                         Claims Administration Costs per Claim Administered ($)
   indicates the efficiency of claims administration as an average of the                               2,000 -
   total Administration Costs divided by the number of claims                                           1,800 -
   administered in the period.
                                                                                                        1,600 -
                                                                                                        1,400-
                                                                                                        1,200 -
                                                                                                        1,000 -
                                                                                                          800
                                            2009                                                                     2005       2006         2007         2008         2009
                                   Target          Actual
                   C(ID)F          $1,805                                                               C(ID)F       1222       1270          929          962         1929
                                                   $1,929   4,


 Comments: The result for the 2009 financial year is higher than target due to   a   combination of increases in administration expenses and fewer new claims in the year.




pjsi   psir rnMMlssInN   r)F W1.qTFRN Al ISTRAI   IA                                                                                                             ANNUAL REPORT 2009
      20( REPORT ANNUAL                                    AUSTRALIA WESTERN OF COMMISSION INSURANCE
                                           (IBNER) reported enough not but incurred claims o
                                                    (IBNR); reported not but incurred claims
                                              paid; not but reported been have which claims o
                                                                                    for: adjusted
          policy/cover, insurance an of terms the under suffered losses for paid amount The
                                                                                Expense Claims
                                                                                  relates. it which
          to liability claim of amount actual the meeting in adequate be will liability the that
          confidence of level 50% a on based claims outstanding for liability the of estimate The
                                                                                  Estimate Central
                                         attitudes. claimant in changes and awards, court of size
          include, example for may payments, claims of amount estimate the determining in Used
                                                                 Factors Payment Estimate Case
                                                                       reported. claim each for
          insurer the by made claim individual an for outstanding amount the of assessment An
                                                                                Estimate Case
                                          date. settlement its to claim of notification from term The
                                                                       Settlement to Term Average
                                                                                             CLAIMS
                                                                                    mesothelioma. for
          cure a find to research medical on expended be ftiture the in will and been has reserve
          the of Part diseases. industrial of treatment and prevention the into research and 1932 Act
          Fund Relief Workers' Mine the to pursuant Commission Insurance the by expended be
          to required amounts any meeting, in assist or meet, to Reserve this in monies the transfer
          only may Commission Insurance the 1986, Act Australia Western of Commission
          Insurance the with accordance In liabilities. claims outstanding its for estimate actuarial
          the to surplus firnds from results Reserve Fund Diseases) (Industrial Compensation The
                            RESERVE FUND DISEASES) (INDUSTRIAL COMPENSATION
                                                                   Division. RiskCover the by
          managed and Crown the by underwritten is CIF The cover. insurance affordable obtain
          to Australia, Western in based organisations, community not-for-profit incorporated
          eligible assist to Australia Western of Government the by established was CIF The
                                                     FUND INSURANCE COMMUNITY                 - CIF
                                                                                  revaluation. after
          buildings and land of value fair in surplus the represents reserve revaluation asset The
                                                            RESERVE REVALUATION ASSET
                                                           premiums. insurance party third vehicle
          motor of collection the administering for Infrastructure) and Planning for Department
          (formerly Transport of Department the by charged costs all to relate costs Acquisition
                                                                           COSTS ACQUISTION
                                               Health. on Research Economic for Centre Australian
                                                                                            ACERH
                                   Statements. Financial its and Report Annual this of understanding
          better a gaining in readers assist to provided been have definitions following The
21)                                                                                            GLOSSARY
2OO   REPORT ANNUAL                                    AUSTRALIA WESTERN OF COMMISSION
                                                                                               (AUDTEDSUNCE
                                                                                                        QAG   /
                    claims. to relation in salvage) (e.g. recoverable or recovered amounts Other
                                                                               Recoveries Other
                                                                                     recoverable.
       amounts other and reinsurance of net claims, outstanding for liability the in movement
       the and costs) settlement claims' (including paid claims comprises Incurred Claims Net
                                                                           Incurred Claims Net
                                             Corporation. the of portfolio Proportional Casualty
       Australian the to relation in cost incurred ultimate the projecting for basis a as Used
                                            Proportional Casualty Australian for Ratio Loss
                                                                    claims. those to rise giving
       events the of occurrence the of year one within settled not typically are which Claims
                                                                              Claims Long-Tail
                                                                            paid. be may that
       GST any of gross IBNERs, and IBNRs paid, not but reported been have which those
       incorporate claims Outstanding costs. settlement claims' indirect and direct including
       date, balance at as outstanding claims of cost estimated future the for provision A
                                                             Claims Outstanding for Liability
                         Liability". Risk "Unexpired as Sheet Balance the in presented liability
       additional an and Statement Income the in recognised is deficiency a then costs, claims
       future these meet to insufficient be to assessed is Liability Premium Unearned the If
                                  obligations. insurance general current under arise that claims,
       future to related margin, risk additional an plus cashflows, future of value present
       estimated the meet to sufficient is Sheet, Balance the in recognised costs) acquisition
       deferred any (less Liability Premium Unearned the whether of assessment An
                                                                      Test Adequacy Liability
                                                                                economy.
       general the in increases of account take to inflated are payments future Expected
                                                                                 Rates Inflation
                                                                   claims. IBNER and IBNR
       both for provision a includes Sheet Balance the in claims outstanding for liability The
                                                      understated. be may reported amount the
       but date, balance at as reported been and occurred have which events from arise claims
       (IBNER) reported enough not but Incurred date. balance at as reported been not have
       but occurred have which events from arise claims (IBNR) reported not but Incurred
                                                                   Claims IBNER and IBNR
                  money. of value time the for payments future expected adjust to used rate The
                                                                                  Rate Discount
                   claims. of processing and administration the to relation in incurred costs The
                                                    Expenses Handling/Management Claims
                                                                          fees. assessors
       and costs medical and legal as such expenses direct includes also expense Claims
                        costs. settlement claims indirect and direct anticipated the with together
                                                                                             GLOSSARY
                                                                                                                  A
           2009 REPORT ANNUAL                                     AUSTRALIA WESTERN OF COMMISSION INSURANCE           86   \
                                                                                                                  (AUDITED
                        income. investment deriving with associated costs to relates expenses Investment
                                                                             EXPENSES INVESTMENT
                                                                properties. investment of revaluation the
                with associated those and Loss or Profit through Value Fair at Assets Financial as Sheet
                Balance the on classified assets to relating losses and gains unrealised and Realised
                  VALUE FAIR IN MOVEMENTS INCLUDING INCOME/LOSS INVESTMENT
                                             Fund General Commission Insurance    -  ICGF
                                                                                  -
                                                      Fund Insurance Government        GIF
                                                                                  -  CIDF
                                          Fund Diseases) (Industrial Compensation
                                                                                  -
                                                       Fund Insurance Party Third     TPIF
                                                             FUNDS COMMISSION'S INSURANCE
                                                                                           receivables.
                on discounts in movements and paid or recoup interest includes Costs / Recoup Finance
                                                                       COSTS / RECOUP FINANCE
                                                                   Governance. and Social Environmental,
                                                                                                   ESG
                                                               Infrastructure. and Planning for Department
                                                                                                       DPI
                                                             periods. reporting future in recognised be will
                that revenue to rise give the when assets as recognised and deferred are costs Acquisition
                                                                  COSTS ACQUISITION DEFERRED
                                                                      Plan Inclusion and Access Disability
                                                                                                      DAIP
                            Test". Adequacy "Liability the in deficiency assessed an of result a as Arises
                                                                                Liability Risk Unexpired
                                   parties. private or insurers other from recovered amounts include May
                                                                                  Recoveries Party Third
                         awards. court in increases as such factors, inflationary non-economic of account
                take to superimposed is amount an rate inflation economic general the to addition In
                                                                            Rate Inflation Superimposed
                                                                                       claims. those to rise
                giving events the of occurrence the of year one within settled typically are which Claims
                                                                                        Claims Short-Tail
                                                                           event. single a of out arising
                claims many or claims large single, against protection some provides cover Reinsurance
                purchased. cover reinsurance of respect in recoverable or recovered Amounts
                                                                                 Recoveries Reinsurance
                                                              relates. it which to liability claim of amount
                actual the meeting in adequate be will liabi]ity the that confidence of level the increase
                to claims, outstanding for liability the of estimate central the to added amount An
                                                                                       Margin Prudential
                                                                                                       GLOSSARY
i   r ')
       20 REPORT ANNUAL                                      AUSTRALIA WESTERN OF COMMISSION INSURANCE
                                                                       Division. Investigations Special
                                                                                                   SID
                                                            Aware. Road and Education Drug School
                                                                                               SDERA
                                                                                  Council. Safety Road
                                                                                                   RSC
                  Commission. Insurance the by managed and Australia Western of Government
          the by underwritten is RiskCover Government. State the of authorities public of
          arrangements self-insurance the administer to established Fund Managed a is RiskCover
                                                                                        RISKCOVER
                            sustain. may latter the which loss, a of part or all against reinsured) (the
          insurer general another indemnify to reinsurer) (the insurer general a by provided Cover
                                                                                    REINSURANCE
                                                                    Facility. Reporting Crash On-Line
                                                                                                OCRF
                                                                   date. balance to subsequent
          insurance of periods for risks to relates which written, premium of portion The
                                                                                 Premium Unearned
                                                                                    date. balance
          at as premium unearned for adjusted is revenue Premium parties. third of behalf on
          collected amounts oilier and duties stamp excludes but levies, insurance compensation
          workers' includes It    insurers. other to charged amounts Reinsurance, Inwards
          to relation in and policyholders to charged amounts comprises revenue Premium
                                                                                  Revenue Premium
                                      date. balance at as prepaid amount any for adjusted reinsurer,
          the by assumed liability insurance the for consideration in reinsurer a to paid Premium
                                                                   Expense Reinsurance Outwards
                                                                    Premium. Earned Net as
          to referred been previously has Revenue Premium Net expense. reinsurance outwards
          the than less earned commission reinsurance outwards the plus revenue Premium
                                                                              Revenue Premium Net
                              cover. party third compulsory have to required are Australia Western
          in roads public using vehicles motor of owners All accident. road a of result a as parties
          third of death or to injury bodily covering insurance of respect in received Premiums
                                                               Insurance Party Third Compulsory
                                                                                         PREMIUMS
                                                       recoveries. other or reinsurance associated
          any less movement gross the represents Liability Risk Unexpired in movement net The
                                    LIABILITY RISK UNEXPIRED IN MOVEMENT NET
                                                                       Injury. Personal Vehicle Motor
                                                                                                MVPI
                                                                                                  GLOSSARY
fl 2
       2OO   REPORT ANNUAL                                  AUSTRALIA WESTERN OF COMMISSION INSURANCE
U
                                              Government, State the of behalf on Division RiskCover
              the by "run-off' be will they emerged claims any should Fund, Insurance Community
              the for liabilities claims outstanding no were there 2009 June 30 at as Whilst
                                                                 run-off. in are Corporation
              Insurance Government State the and Fund General Commission Insurance Fund,
              Insurance Government The liquidation. final their to extinguished progressively being
              are liabilities claims' applicable the where portfolios insurance closed to refers Run-off
                                                                                                Run-off
                                                                                                OTHER 24.
                                                                                               GLOSSARY
2(1F
      2009 REPORT ANNUAL                                                AUSTRALIA WESTERN OF COMMISSION INSURANCE
                62                                                                                       Audit Internal
  13            131                                                                                   Assets Intangible
                62                                                                 Advice Professional Independent
  8             124                                                                           Equivalent Tax Income
                80                                                                                   Statement Income
  I   3         164                                                                                      Entities Group
                67                                                                 Requirements Policy Government
                63                                                                           Disclosures Governance
                204                                                                                            Glossary
  29            161                                                                        Earnings Retained Funds'
  27            157                                                                         Statement Income Funds'
  28            159                                                                             Sheet Balance Funds'
                17                                                                                                Funds
                76                                                                        Index Statements Financial
  25            152                                                                             Instruments Financial
                14
                                                                                                 -
                                   (Consolidated) Australia Western of Commission Insurance Overview Financial
  10            127                                            Loss or Profit Through Value Fair at Assets Financial
                62                                                                           Administration Financial
  30            162
                                                                                             -
                                                                    Commission Insurance Statement Explanatory
  6             122                                                                                            Expenses
  34            166                                                                        Commitments Expenditure
                8                                                                                  Summary Executive
                24                                                                               Committee Executive
      35        166                                                      Date Sheet Balance After Occurring Events
                61                                                        Outcomes Opportunity Employment Equal
                17                                                                                Legislation Enabling
                60                                                              Relations Industrial and Employment
      21        147                                                                     Liabilities Benefit Employee
      32        165                                                                            Dependency Economic
                63                                                                               Interest of Disclosure
                58                                                                Compliance Legal and Disclosures
                64                                                    Outcomes Plan Inclusion and Access Disability
      14        132                                                                       Costs Acquisition Deferred
      2         97                                                    Estimates and Judgements Accounting Critical
                67                                                                              Prevention Corruption
      33        165                                                                 Liabilities and Assets Contingent
                 7                                                                                      Details Contact
                 65                                     Codes Ethical and Standards Sector Public with Compliance
      41         179                                                Statements Financial Fund Insurance Community
                 53                                                                                  Focus Community
                 55                                                                           Law Written in Changes
                 8                                                                                  Report Chairman's
                 77      Officer Finance Chief and Board the of Members the by Statements Financial of Certification
                 83                                                                               Statement Flow Cash
                 59                                                                                      Works Capital
                 20                                                                          Commissioners of Board
                 57                                                                              Action Recovery Bell
                    81                                                                                    Sheet Balance
                 78
                                                                                         -
                                                                   Statements Financial Opinion General's Auditor
      23         150                            Currencies Foreign in Denominated Payable and Receivable Amounts
                 29                                                                               Performance Agency
                 63
                                                                                                         -
                                                                              Expenditure of Statement Advertising
                 17                                                                         Legislation Administering
      3          98                                                              Methods and Assumptions Actuarial
                 16                                                                 Commission Insurance the About
           AQ    Page
2W1                                                                                                          INDEX
           2009 REPORT ANNUAL                                         AUSTRALIA WESTERN OF COMMISSION INSURANCE
                 5                                                                                           Vision
                 5                                                                                           Values
       19        146                                                                     Liability Risk Unexpired
       18        145                                                                 Liability Premium Unearned
                 71                                                                                   Sustainability
                 71                                                                           Equality Substantive
                 84                                                Policies Accounting Significant of Statement
                 6                                                       Minister the to Compliance of Statement
                 82                                                               Equity in Changes of Statement
                 44                                                                          Investigations Special
                 55                                               Agency the Upon Impacting Issues Significant
                 28                                                 Agencies Other with Responsibilities Shared
                 63                                                               Officers Senior by Held Shares
       26        156                                                                            Reporting Segment
       4         108                                                   Procedures and Policies Management Risk
       40        171                                                        Statements Financial Fund RiskCover
                 57                                             Trends Claim And Management Risk RiskCover
                                                                                                         over RiskC
                 36
                 16                                                                           Minister Responsible
                 17                                          Australia Western of Government with Relationship
       39        170                                                                    Disclosures Party Related
       5         121                                                                          Income and Revenue
       37        168            Personnel Management Key other and Commissioners of Board the of Remuneration
       38        170                                                                     Auditor of Remuneration
                 66                                                                          Plans RecordKeeping
       9         126                                                                                    Receivables
       20        147                                                                                     Provisions
       11        129                                                               Equipment and Plant Property,
       22        150                                                                       Income Lease Property
                 58                                                          Provided Services of Policies Pricing
                 28                                                         Framework Management Performance
       16        132                                                                                       Payables
       17        133                                                                 Liability Claims Outstanding
                     8                                                                                    Overview
                     28                                                 Framework Management Based Outcome
                     63                                                                 Requirements Legal Other
                     43                          Division RiskCover the by Managed Businesses and Funds Other
                     58                                                                Disclosures Financial Other
       15            132                                                                               Assets Other
                     68                                                    (OSH) Health and Safety Occupational
                     18                                                                   Structure Organisational
                     16                                                                       Structure Operational
       24            151                                                        Statement Flow Cash the to Notes
       7             123                                                                       Incurred Claims Net
                     56                                                                       Trends Claims MVPI
                     30                                    Insurance Injury) (Personal Party Third Vehicle Motor
                     5                                                                                      Mission
                     58                                                                      Directives Ministerial
                     11                                                               Report Director's Managing
       36            167                                         Causes Other and Default Theft, through Losses
                     193                                                             Fund Insurance Party Third -
                     197                                                                                over RiskC -
                     202                                               Fund Diseases) (Industrial Compensation -
                     187                                                                  Commission Insurance -
                     185                                                              Opinion General's Auditor -
                                                                                                                    -
                     184                                           Indicators Performance Key of Certification
                     183                                                              Indicators Performance Key
                     46                                                                                 Investments
        12           131                                                                     Properties Investment
        Note         Page
211)

				
DOCUMENT INFO