Cost Containment in Workers Compensation A Priority for Businesses
Safety Seen As Most Effective Tool
A recent survey indicates that employers across 20 different sectors representing 3,500 businesses across the country view cost containment of Workers Compensation as their number-one concern for 2012. In fact, 59% percent of employers say they are very or somewhat concerned about cost containment this year. This isn’t surprising, as Workers Compensation premiums represent a significant expenditure for companies and, since last year, rates have been steadily increasing. In fact, in March rates increased by 4%, according to MarketScout, with some of the large brokerages confirming rate increases on renewals.
According to the 2012 P&C Workers’ Compensation & Safety Survey conducted in January/February by Zywave, a provider of technology solutions to insurance and financial firms, 65% of those survey said that the most effective measure to control Workers Comp costs was to have a safety-minded culture. The survey also showed that 59% considered a light-duty or return to work program as an effective or highly effective method of controlling costs, with only 45 percent of respondents reporting that they have a written return to work policy. Additional popular cost-control measures, according to the survey, include onsite accident evaluations, loss prevention evaluations, zero-accident goals, having a dedicated claims manager, safety committee efforts, and using a preferred occupational medicine facility.
Employers also expressed concerns outside cost containment, including:
- Increased exposures (35%)
- Renewals (35%)
- Rising fraud behaviors (31%)
- Market availability (25%)
- Carrier stability (20%)
When speaking to your clients about Workers Comp, it’s not only clear that containing costs is a high priority but it’s also evident that there is an opportunity to assist businesses in doing so by closing the gap between what is viewed as effective and actually implementing it. This includes establishing a return to work program, for example, as the survey indicates that employers see this as a highly effective strategy in stemming costs but many don’t actually have an official policy implemented.
Caitlin-Morgan can help you provide your clients with Workers Compensation solutions. We have marketplace leverage and access to financially strong, A-rated carriers. We also have alternative solutions that can help with cost containment, such as self-insured programs, captives, and large-deductible programs. Give us a call at: 877.226.1027.
Posted in: Workers Compensation