CASE STUDY: WORKERS COMPENSATION
Our client operates in the Aged Care Sector which has very specific needs.
In 2014, our client was concerned about increasing workers compensation premiums and needed assistance with management of workcover claims. At this time, Victorian workers compensation premiums were capped at 30% of the business’ annual wages. The cap applied from the 2012/13 to 2014/15 financial years. During this time our client had an increase in workers compensation claims, and no injury management system in place nor the experience to manage Workcover claims.
The client engaged Insurance House to:
- conduct a review
- assist with implementing programs to manage claims
- reduce the likelihood of claims, and
- reduce premiums where possible.
The Insurance House Solution:
Insurance House Workers Compensation Team carried out an obligation free health check of their workers compensation program. We determined that the following needed to be actioned to improve outcomes:
- Premium Analysis
- Claim Cost Analysis
- Claim/Injury trends
- Early Intervention
- Proactive claims management
- Implementation of outcome-based claim strategies
- Quarterly Claim reviews
Insurance House, with the support of the Client’s management team, went about resolving all existing claims and managing new claims from the beginning. This resulted in quicker and improved claim outcomes.
Insurance House Workers Compensation team also conducted training/education sessions with the client’s management team. The objective was to ensure that they understood what drives premiums and how to keep claim costs at a minimum.
Measurable benefits to our client:
- Reduction in premium by 90% since the commencement of Insurance House’s program (even though remuneration increased by 66% during the same time)
- Reduction in claim costs (even with yearly claim numbers staying very similar) - Clients average claim costs over the past 5 years was $11,390 (versus Industry average over 5 years $68,908)
- Reduction in the Workcover employer performance rating (EPR) from 2.469 to 0.817 (Performance now rated better than their industry)
- Increase in client’s management/staff engagement around safety and early intervention
With the client’s performance indicators/ratings continuing to trend downward and it is predicted that ongoing premium savings will be realised by our client in the future.
If you would like to discuss how the Insurance House Workers Compensation team can help your organisation improve its Workers Compensation outcomes, please contact
Mark Farrugia, Head of Workers Compensation,
Iain Lumsden, NSW Workers Compensation Manager
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