Organisations only have five more opportunities to reduce their WorkCover premium before the 2010/2011 renewal is calculated. WorkCover is typically the second largest labour cost for organisations and needs strategic management at the Executive level. Many organisations fail to realise that their WorkCover Premium is a variable insurance cost that can be reduced below the industry rate.
How? By reducing the most important factor driving your WorkCover premium – claims costs, more specifically the Statistical Case Estimate (SCE) attributed to each WorkCover claim. Claims costs consist of the actual amount spent on a claim + the SCE associated to each claim. The SCE can be reduced through strategic claims management provided by industry experts at P2 Group.
WorkSafe Victoria introduced the SCE model in 2004 to level out the playing field across all WorkCover Agents. Instead of a human case manager setting the estimate costs on individual claims, WorkSafe Victoria introduced a computer algorithm to calculate all estimate costs on the fifth day of every month. During July a final calculation is performed and a snapshot of the actual costs + estimate costs is entered into the premium renewal calculation. Therefore leaving only 5 more opportunities this financial year to resolve open and active WorkCover claims and reduce the SCEs associated to each claim.
Claims costs consist of a number of different attributes such as medical and like expenses, legal expenses, occupational rehabilitation expenses etc. but the attribute which has the most profound affect on claims costs is weekly compensation. By taking control internally of your injury management procedures and having your managers implement sustainable return to work plans for their injured workers, your claims costs will reduce.
Time is fast running out so ask yourself, what is the cost of waiting?
Click here to contact P2 Group for independent expert advice. P2 Group can review your claims costs to determine what your achievable savings are for the current and next financial years, if you implement the P2 Group strategic injury management process. P2 Group can establish a budget with the CFO to take control of WorkCover costs. What you can measure you can manage.
Tags: computer algorithm, control, Estimate, independent expert advice, labour cost, P2 Group, premium, rehabilitation expenses, SCE, variable insurance, workcover
