Return to work rates after injury are considerably lower than the government's goals, the CEO of the State Insurance Regulatory Authority (SIRA) Adam Dent told a budget estimates hearing on Tuesday.
After rates fell in recent years, return to work numbers have begun to stabilise at a historically low average, Mr Dent said.
As of April, about two thirds of compensated workers were back at work after four weeks and four out of five after 13 weeks, Mr Dent said.
He rejected a suggestion from Shadow Treasurer Daniel Mookhey that the results were disastrously low for NSW, saying rates were in decline nationally.
Many workers injured on the job are supported through iCare, a government-owned scheme providing insurance to 329,000 public and private businesses.
However, iCare has been plagued by allegations of mismanagement, haemorrhaging money and earlier this year leaked the personal data of close to 200,000 injured workers.
Mr Dent said on Tuesday it was not good news the state's Workers Compensation Nominal Insurer (NI), managed by iCare, had lost $900 million over the 2021-2022 financial year.
"I continue to share my concerns with iCare," Mr Dent said.
Despite this, and seeing considerable work undertaken by iCare, he said he had not see any signs of significant improvement.
"The fact remains that a $900 million loss is not good."
Businesses using the NI are also likely to face rising premiums for the coming decade, due the insurer having liabilities exceeding its assets by close to a billion dollars.
Premiums would have to rise every year, hitting at least 25 per cent before they reach a "break even" point for the insurer, Mr Dent confirmed.
That rise in premiums would only account for the scheme's current liabilities - and would not cover any possible payouts.
The insurer is not at risk of insolvency, however, because not all eligible people are making their claims, and benefits are spent over a period of time.
