Systems and procedures designed to improve occupational health and safety (OHS) performance are usually superior to those designed to drive down direct and indirect workers' compensation claim costs. Organisations often see the management of workers' compensation claims as solely the domain of the insurer. However, employers can take many initiatives to improve their own claims management performance and the level of service provided by insurers.

Many employers run the risk of not having the best resources or systems and procedures to ensure that their workers' compensation claims are managed and resolved on a cost effective and timely basis.

As a result, they risk paying too much to their injured workers and in premium because they may not be driving workers' compensation performance:

• Internally through systems, procedures and the involvement of management
• Externally through insurers
• Externally through performance of service providers such as lawyers, loss adjusters and rehabilitation providers

If an employer's workers' compensation claims management model is outdated or has never been audited externally, then there is little doubt that they will be paying inflated claim and premium costs.

Best practice workers' compensation performance

Workers' compensation claims management is a highly technical activity from a procedural and legal perspective. Best practice workers' compensation performance is founded on:

• Employer understanding of the technical side of workers' compensation claims management
• An effective partnership with the insurer arising from that technical awareness
• Monitoring and driving insurer claims management performance
• Establishment of internal claims management systems based on a business model which drives internal performance and involves senior management
• Development of precise claims management strategies for each injury/claim type relevant to an organisation
• Building worker motivation

Marsh can assist you to achieve best practice workers' compensation performance in your organisation.