WorkSafe delivers solid financial and operational results

30 August 2010

WorkSafe Victoria has reported its lowest-ever injury rate and solid financial results over the past financial year.

WorkSafe Chair, Elana Rubin, said the number of claims per thousand workers continued its downward trend finishing 2009-10 at 10.54 claims per 1000 workers compared with 10.8 claims per 1000 in 2008-09.

“This is the lowest injury rate on record for any financial year. We are making progress on all fronts, but more can be done across the community to improve workplace safety and help injured people back to work.

Ms Rubin said WorkSafe’s key financial indicator, performance from insurance operations (PFIO), rose to $654.1 million (up from $277.4 million last year), the 2009-10 results underlining WorkSafe’s fundamental strength.

“The PFIO is important because it disregards those external factors we cannot control to reflect the scheme’s underlying performance, and illustrates that the fundamentals of the system remain sound.

“As we have seen over the past year, investment markets, inflation and bond yields can be volatile. They flowed through to affect our net result, but they don’t give an indication of how the scheme is really travelling.

Improved claims management enabled this strong PFIO result and an actuarial release – or improvement against forecast liabilities – of $189 million, up from $78 million in the previous year.

“Years of sound management have allowed delivery of an historic $90 million package of initiatives to improve benefits to injured workers while employers this year benefited from the sixth premium cut in seven years,” Ms Rubin said.

“This is tangible evidence of WorkSafe delivering balanced outcomes to stakeholders while ensuring the long-term sustainability of the scheme for the benefit of the community.

“WorkSafe Victoria prides itself on being a leader in the field. The state’s workplaces have never been safer, making Victoria an even more attractive place to invest with historically low workplace injury insurance premiums.

“Victoria’s workplaces remain the safest they have ever been, but WorkSafe continues to work hard to deliver on our mission of ensuring workers return home safe every day,” Ms Rubin said.

“We will do whatever possible to prevent the devastating impact of deaths and injuries and to help injured people return to work when it is safe for them to do so. The community expects nothing less.”

“Simpler and clearer return-to-work obligations which benefit workers and employers are now in place while a dedicated inspectorate is helping ensure those obligations are met.”

Ms Rubin said tackling the incidence of injuries and fatalities remained a challenge, but programs being rolled out targeted key issues.

These include

• a year-long, state-wide operation, to reduce deaths and injuries on farms which accounted for 10 of the 26 deaths last financial year;
• a major campaign targeting musculoskeletal injuries, which account for more than half of all claims;
• the WorkHealth program aims to reach another 220,000 Victorian workers at risk of life threatening conditions like diabetes, high cholesterol and heart disease while helping employers address health risks through simplified access to health promotion grants, practical tools and advice to build health and well-being programs.

Summary of 2009-10 financial results

	2009-10	2008-09
Performance from Insurance operations (PFIO)	$654m	$277.4m
Actuarial release	$189m	$78m
Net result after tax	$176m	($1.25b)
Funding ratio	100%	97%