Have you ever asked yourself whether self-insuring your workers’ compensation program is a viable option for your organisation?
Use this checklist to determine whether your insurance management strategies support your organisation’s strategic and financial goals.
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Looking to self-insure?
In Australia, employers who meet specific eligibility requirements are able to opt-out of the statutory workers' compensation system and self-insure. This is a financially flexible way for some organisations to lower ongoing workers’ compensation expenditures.
Most companies decide to self-insure to free up operating capital that is otherwise paid out in an annual workers’ compensation premium. On paper this can seem to be a sound financial decision, but not all self-insurers reap the expected benefits.
Aon Hewitt is the market leader in self-insurance, with extensive experience and a proven track record in assisting clients to successfully self-insure in state, territory and federal jurisdictions. Our consultants can help you:
- conduct feasibility studies
- prepare business cases
- prepare license applications
- develop communication and transition strategies
- conduct independent WHS audits against self-insurer standards.
Looking to improve your current self-insurance capabilities?
Self-insurance is a risk financing strategy and needs to be managed in the same way as any other aspect of your business. If you are not achieving the savings you hoped for by becoming a self-insurer, our experienced team can assist you to:
- improve corporate governance to help you monitor and improve your workers’ compensation program and injury management practices
- identify key cost drivers and improve the future management of these costs
- understand actuarial reports
- conduct independent audits of your WHS, claims and injury management systems against self-insurer standards
- identify key claims drivers and implement sustainable strategies to mitigate risk
- negotiate, monitor and review service level agreements with third party providers
- develop metrics and reporting solutions to monitor business performance.