Cost Containment A Major Workers Compensation Insurance Concern
A new study shows the number-one workers compensation insurance concern of employers during 2012
, moving into next year, is cost containment. Conducted from January 6 to February 24, Zywaves
Workers Compensation Safety Survey studied 20 business sectors, with the heaviest representation coming from manufacturers (17 percent), health care and social assistance providers (15 percent), and construction (13 percent). Survey respondents included human resource personnel (36 percent), finance staff (19 percent), CEOs or presidents (16 percent), and other staff, including safety managers, risk managers and operations directors.
Some 57% of those participating reported workers' compensation premiums under $50,000 annually. Many said they are somewhat concerned about their ability to contain costs this year. Employers are also concerned about increasing exposures, renewals and rising fraud behaviors.
Among the companies surveyed, 54% reported a payroll increase in the last year, while 21% reported a decrease and 24% said their payroll did not change. Almost half (48 percent) reported a premium increase in the past year, while 28% reported a decrease and 24% said their premiums stayed the same.
Other survey results included certain data:
Participants said the most effective measure they took to control workers' comp cost was having a safety-minded culture (65 percent)
Of the 63% of employers who reported having a written safety manual, 48% indicated the manual had been reviewed within the past year
While 59% indicated that a light-duty or return to work program was an effective or highly effective method of controlling costs, only 45% of respondents reported having a written return to work policy
Other popular cost control measures were, in order of popularity:
On site
accident evaluations
Loss prevention evaluations
Zero-accident goals
Having a dedicated claims manager
Safety committee efforts, and
Using a preferred occupational medicine facility
After cost containment, employers expressed notable concerns about increasing exposures (35 percent), renewals (35 percent), and rising fraud behaviors (31 percent). Market availability was a concern of 26% of respondents, and just over 20% were worried about carrier stability
Companies reported having a safety director (54 percent) more often than a risk manager (29 percent), although duties of these personnel may often be similar. In cases where a safety committee existed (48 percent), 81% indicated the committee was empowered to engage policies and corrective actions
Of companies who reported being experience rated, 88% either did not know the value of their loss-free rating or were not familiar with the term.
by: KellieM.Atkinson
Important Tips To Save Money On Vehicle Insurance Private Health Insurance: Get Instant Benefits Of Health Security In Emergency Things To Check When Signing Up For Health Insurance Health Insurance High Blood Pressure Is Very Affordable Home Insurance, Flood Insurance And More What Is Life Insurance? 4 Ways To Tell If Your Home Is Underinsured Mistakes You Might Be Making While Buying Car Insurance Are You Lying On Your Car Insurance Application? Private Health Insurance In The Uk From Medic Aid Is Massage Therapy Covered By Insurance How To Increase Your Insurance Agent Salary: Why Working With A Managing General Agency Provides Far Used Car Dealer Insurance Is An Essential Need