WorkSafe Chief Executive, Denise Cosgrove, said Victoria’s employers and employees had worked hard to reduce injury rates and, together with agents and WorkSafe staff, had helped create strong claims liability results.
“The number of claims per million hours worked fell to 7.53 as Victorian workplaces continued to improve their safety performances. That is a fall of 6.6 per cent on the previous year and once again confirmed Victoria as the safest state in which to work,” Ms Cosgrove said.
“Strong scheme management delivered improved performance from insurance operations (PFIO) of $119 million, underpinned by an actuarial release of $179 million. Both figures reflect the ongoing health of the scheme.”
Ms Cosgrove said Performance from Insurance Operations (PFIO) was the clearest measure of WorkSafe’s financial results because it stripped out all external factors such as global investment returns and interest rate changes, which can otherwise mask scheme performance.
“Our PFIO, which was $84 million above budget, gives us an accurate picture of how well costs and liabilities associated with the scheme have been managed,” she said.
Ms Cosgrove said the actuarial release had exceeded its target and reflected the efforts of those involved in helping injured workers get back to safe work sooner, and in managing other claim costs.
Ms Cosgrove said WorkSafe’s net result was $1.084 billion, which was significantly assisted by improved investment returns and changes to economic assumptions such as inflation and discount rates.
“In 2012/13, we paid almost $1.6 billion in compensation, treatment and rehabilitation benefits to injured Victorian workers,” she said.
“Taken as a whole, these results indicate that the scheme is in a sound financial position.”
Ms Cosgrove said Victoria’s average premium rate of 1.298 per cent remained the lowest in the state’s history and the lowest rate in the country. “This is a great outcome for all Victorian businesses which benefit from being part of a high quality scheme that keeps costs down.”
Ms Cosgrove said that while the results for 2012/13 were pleasing, WorkSafe has put in place a clear strategy to deal with the challenges of a changing socio-economic environment.
“Changing patterns and types of work, economic conditions, and an ageing workforce will increasingly affect workplace safety and return to work opportunities,” she said.
“While we have made steady gains over a sustained period of time, forward trends are showing that improvements are slowing. As a result, we have begun to introduce a series of strategic initiatives designed to keep improving workplace safety and deliver strong return-to-work and service rates while keeping premium costs low and achieving our longer term performance targets.”
Financial results at a glance
|Performance from insurance operations||$119m||$385m||$294m||$654m||$277m|
|Net result after tax||$1.084b||($676m)||$521m||$176m||($1.255b)|
Average injury insurance premium rates
Award winner to present at return to work forumNews
20 Mar 2012
South Eastern employers urged to learn more about return to workNews
15 Nov 2011
Returning to work made easier for injured workersNews
23 Aug 2011
Making an early comeback after injury is good newsNews
09 Aug 2011
Klim says make a comeback after injuryNews
21 Jul 2011
Treatment professionals should focus on potential not limitationNews
02 Sep 2011
WorkSafe to target uninsured businesses in CBD campaignNews
06 Jul 2011
Undercover experience a safety eye-opener for CEOsNews
03 May 2011
Nine months' jail for comp fraudNews
24 Oct 2011
New campaign says unsafe work means no playNews
14 Apr 2011
Heads Up! WorkSafe coming To BairnsdaleNews
18 Apr 2011
2011 WorkSafe Awards winnersNews
20 Oct 2011
New agent panel to manage premium & claimsNews
07 Apr 2011
Employers can help injured people back to workNews
24 Jun 2011
Fonterra fined and convicted for fatalityNews
17 Oct 2011
Building company convicted and fined for fatalityNews
14 Oct 2011
Safety issues ignored, young truck driver diesNews
11 Oct 2011
Refrigeration company convicted and finedNews
05 Oct 2011
Post-storm clean-up requires safety careNews
21 Jun 2011
WorkSafe Awards 2011 now openNews
20 Jun 2011