| PERIOD: |
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| CHALLENGE: |
- NSW Insurer advised this company two months before renewal that their end of year adjustment and next year’s renewal premiums were likely to be approx $1 M above their budgeted amounts (i.e. $2M in total)
- Clients “need” therefore was to reduce premiums by approximately $1M against WorkCover forecast of $6M expenditure in each year
- The projected premium rate was almost 50% above tariff rate Client lacked understanding of workers compensation premium drivers and management principles
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| ACTION: |
- Developed short term intensive management plans for each claim where there was an opportunity to achieve immediate reductions in estimated claim costs and future premiums
- Provided intensive claims management leadership over a six week period leading up to the end of the policy year (on-site contractor)
- Directed their insurer and other service providers on a daily basis
- Reviewed claim status and options with managers, insurer and service providers weekly
- Co-ordinated and identified suitable duties options for injured workers
- Followed though to ensure future claim cost estimates recorded by the insurer were reduced to the lowest level achievable at the date of premium calculation
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| RESULTS: |
- $1.5M reduction in adjustment premium
- $1.3M reduction in new year’s deposit premium
- Benchmarking to determine next year’s objectives and actions required to achieve premium improvement
- Understanding that outcome stiII sees them paying premiums that are higher than industry rate
- Understanding that estimate bashing alone is not a total solution
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