Transforming under performing workers compensation schemes

transcript

NATIONAL CONFERENCE & EXHIBITION 2014

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National Conference & Exhibition 2014

Transformingunder performing

workers compensation

schemesRob CordinerGeneral Manager, InsuranceWorkCoverSA

SimpleEasy

I understandService

HelpClarity

Run it like any businessI can perform/achieve

Business planROI

Tax: expensiveLegal processGovernmentRegulation

CompulsoryTechnicalLong tailComplex

HardPoor Motivation

‘Regulatory framework’

Government workers compensation: Makes you think?

Doctors

Lawyers

ActuaryRehab

provider

Loss adjustor

Customers

Stake holders

Suppliers

ABetter life

ABetter life A better life

Common features of underperforming Government owned schemes

Hindering historyRegulator V Insurer role

Stakeholders V controllers

Complexity

One size/rule fits all

Beliefs V facts

Past failures – stuck in past

Worse future

Trust down – drama up

Spin & defence

Insurer V Social welfare

Limited product knowledge

Supporting futureInfrastructure

Customers ‘ pain

Needing clear direction

Sphere of action - now

Sphere of influence - future

Brightness of future

Separate insurer & regulator

Investment performance

Exec product knowledge

Target execution to results

Wear a bullet proof vest

VisionMission

Specifictargets

Goals&

Objectives

MonitorAnalyse trends

FeedbackAction

AskExpect

Demand

Provideright tools

TrainSupport

Accountable

Operational strategy

When dramais up

Trust isdown

If I want thingsto change,

Then first I....

ClarityLeads to

power totake action

Look for blame & justification

It might tell you what you are not

taking responsibilityfor

The little thingsdon’t mean anything

They mean.....................

High performancetools need

High performance management

Cultural improvementthrough

Personal leadership

Our clear “Asks & Demands”Small business - Early service

Whole scheme – manage boundaries

Expect success &

Pay for success

Registered employers

As at 30 June 2014, there were approx. 49,500 registered employers.

< $20k base premium and < $300k remuneration.

$20K-$500k base premium and > $300k remuneration.

> $500k base premium.

Break even premium rate

3.34% 2012-13

2.87%2013-14

Claims liability improvement

$298 million claims liability release.Best release in more than 14 of the last independent valuations.

People with income maintenance claimsReduction across the board of people on the scheme at 2, 13, 26 and 52 weeks.

17% 16%

17% 8%

People with income maintenance claims

Workers are returning to work earlier compared to 2012-13 meaning less people are remaining on the scheme at key milestones.

People entitled to income maintenance

People entitled to income maintenance down 24.3 per cent to last year.

Investment return

$290 million return on investments.Continues to grow, out performing our 10 year average.

Unfunded liability$234 million improvement (17%) to our unfunded liability.

Scheme funding ratioIncreased by 7.3% (71%)Funding ratio back over 70 per cent for the first time in 12 years.

Thank you.