On entering the South Australian workers’ compensation Scheme in early 2013, Gallagher Bassett’s General Manager, Paul Easter, made a commitment that GB’s entry would make a difference to the performance of the Scheme.
South Australian industry has reason to celebrate following the recent announcement of an actuarial release on claims liability of $298 million in the workers’ compensation scheme for the 13/14 financial year. This release can be attributed to active claims management and a marked increase in return to work rates.
This is the first time in a decade the liability of the scheme has decreased in any significant manner based on claims management performance, making these results unprecedented.
Introducing competition into South Australia’s previous claims management monopoly has been a key contributor in delivering improvements which directly benefit South Australian employers. Gallagher Bassett has focussed on bringing national experience and new ideas to managing workers’ compensation. GB engaged in initiatives proposed by WorkCover SA, taking a can do approach to achieve positive change for the Scheme and South Australian Businesses.
Paul Easter has applauded the many employers who have embraced a high level of engagement; making significant efforts to improve their position, strategies and partnership with Gallagher Bassett.
While the existing workers’ compensation legislation has often been attributed as a key contributing factor to eight years of ballooning costs, the latest liability release, based on better claims management, demonstrates that Gallagher Bassett’s contribution has made a difference within the existing legislation.
Gallagher Bassett is committed to deliver tangible improvement in practices and results. Gallagher Bassett’s last twelve months performance highlights how we’ve made a difference.
Improving Sustainable Return to Work Outcomes
- An 11% ($2.5 million) decrease in the Income Maintenance paid for injuries incurred in 2013/14 compared to 2012/13 injuries a year earlier
And even stronger results recently with;
- 32% ($870k) decrease in Income Maintenance for the injuries in the June Qtr 14 compared to injuries in the Jun Qtr 13 at the same time development.
This decrease is attributed to earlier intervention, better claims management and earlier sustainable return to work outcomes.
Achieving Better Results Within Existing Legislation
- Only 10% of Work Capacity Assessments were historically completed on time (2012). In excess of 95% are now completed on time (Sept Qtr 2014)
- South Australia’s Work Capacity Initiative Team awarded Gallagher Bassett’s national ‘Claims Team of the Year’ in recognition of their outstanding results in Return to Work outcomes and issuing of Work Capacity Assessments in their management of long term tail claims.
Proactive claims management, better application of the law and a greater focus on Return to Work outcomes has resulted in decreasing workers’ compensation costs, while improving outcomes for workers.
The decrease in the Income Maintenance costs is a direct result of earlier return to work outcomes and significant effort to complete Work Capacity Assessments on time.
Paul Easter stated “The announcement of the decreasing claims liability directly relates to significant improvements in claims management practice, setting the scene for a better performing scheme moving forward.”
While the proposed change in legislation has been touted to achieve a 2% premium scheme for South Australia, the goal is to continue improving results to further decrease the premium to deliver a nationally competitive scheme.
Easter added, “We have now demonstrated how Gallagher Bassett’s approach delivers better results under the existing legislation and we intend to apply similar effort to support the scheme reform. 2015 heralds significant change for South Australia’s scheme and Gallagher Bassett’s new approach to service delivery will be key in achieving these results.”
To achieve this is a significant undertaking. Gallagher Bassett’s new service structure which rolls out ahead of the Legislation reform in 2015 will increase the number of Return to Work Consultants based in the field and provide employers a level of support not previously experienced in South Australia.
Gallagher Bassett has tested a number of approaches through 2014 with metro and regional based consultants working in the field. Many employers have already experienced the success of Gallagher Bassett’s Northern Regional Strategy, supporting employers from the Barossa through to Whyalla. Gallagher Bassett has utilised and is committed to use resources that live regionally to provide claims management services.
There is a significant amount of work to undertake over the coming year to deliver the Scheme to a nationally competitive position. Gallagher Bassett is excited to be involved in South Australia and to continue demonstrating how our engagement with the State’s employers will continue to make a difference.
Easter added “We have partnered with employers to achieve some excellent results and there is still much to do with others. We need to keep working at this every day to ensure we deliver support and advice to the needs of each employer and worker we engage with. That’s my personal commitment to South Australia’s employers.”
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