Understanding the key drivers of rising workers’ compensation claims costs

Written by: Mark Farrugia, General Manager, Safe Scope

In the current economic environment, we’re all familiar with rising costs across the board. Mark Farrugia, General Manager of Safe Scope dives into the rising costs of claims in the workers compensation space and provides insight into why this might be happening in your workplace and ways you can minimise these.

Claims costs on the up and up

Businesses regularly base an injured workers capacity for employment on certificates of capacity.

The treating doctor issuing the certificates of capacity may not have an understanding of the return to work options available in your workplace. Providing multiple suitable duties options assists the treating doctor in reviewing capacity. This also supports your commitment to returning your injured workers back to work.

Organisations that are proactive in this space, especially those who engage with the claimant’s treating medical team, are achieving better outcomes through collaborating to reduce RTW times.

Managing mental health claims

Insurers are reporting a sharp increase in mental health-related claims over the past five years. Economic and work pressures are weighing on people, the recent pandemic and associated stressors can contribute to burn out.

A recent insurer survey found that 48 per cent of employees felt fatigued in their jobs and more than one third were considering seeking a new role in the next 6-12 months.

Given these contributing factors, culture and engagement, ensuring employees feel valued and acknowledging their unique contributions to the workplace is important.

Proactive communication in regard to burn out prevention, mental health and wellbeing and creating a safety-focused culture where it is safe to discuss mental health challenges can all contribute to minimising the impact of future claims.

Engagement shouldn’t commence when a workplace injury occurs. Training of managers and supervisors to proactively seek opportunities to check-in with their team and assess their health and safety means that risks can be effectively managed.

Ensuring your workplace is safe, and implementing risk management processes and procedures is only the beginning

Building a culture of safety and raising awareness of mental health and wellbeing in the organisation are critical strategies to minimise risk.

Working with a workers’ compensation consultant can also support your organisation to effectively manage future claims.

A consultant can provide expert advice on best-practice risk management and how to handle a claim or take on claims management on your organisation’s behalf.

Safe Scope offers a multidisciplinary approach to workers compensation, with expertise spanning claims management, OHS/WHS and premium management.

How would you like to be treated?

Consider how you would like to be treated by your employer if you were injured and apply these considerations to your workplace’s approach.

If you would like to speak with an expert, the Safe Scope team is here for you www.safescope.au