Vic workers comp system in sound financial position

The workers compensation system in Victoria is in a sound financial position, according to 2014/15 results released by WorkSafe Victoria.

Continued improvements in safety prevention and the best return to work results on record have helped achieve a performance from insurance operations (PFIO) of $211 million. Overall, the scheme posted a net result of $454 million.

“Performance from insurance operations is the best indicator of the scheme’s financial health, because it excludes factors which distort our underlying performance, such as global investment returns and fluctuating interest rates,” said Clare Amies, WorkSafe chief executive.

“The strong PFIO reflects the ongoing commitment of Victorian employers to preventing injuries, our agents’ passion to improve and innovate, and the ability of WorkSafe to manage the scheme as efficiently as possible.

“These results have been achieved while continuing to maintain a high level of support for injured workers, which is the envy of every other state.”

Amies said the PFIO would have been stronger, if not for an actuarial increase of $60 million.

“This is the first time in more than a decade that there has been an actuarial increase for the full year, and this is a sign of the growing challenges that lie ahead, such as pressure from common law,” she said.

“It is why we must continue to seek out more effective ways to manage the scheme so it can remain sustainable.”

The results also showed the number of injuries in Victorian workplaces has continued to fall — from 7.37 claims per million hours worked in 2013/14 to 7.34 claims in 2014/15.

“While Victorian workplaces can be proud that the state’s injury rate continues to decline, it is slowing, and finding ways to drive the injury rate lower will not be easy,” said Amies.

“However, it is a tragedy that 20 Victorians lost their lives in workplace fatalities last year, the same number as in 2013/14. Every workplace fatality is unacceptable and preventable.”

Amies said that while the number of injured workers who needed four weeks or more off work had grown from 3.10 claims per million hours worked to 3.16 claims, there had been a record improvement in return to work rates.

“Over the past 12 months, the number of injured workers returning to some form of safe work within six months of being injured has been quite stunning,” she said.

“This year, 80.61% of injured workers were able to return to work within six months, up from 80.04% in the previous year. This is a record result for Victoria.”

Source