1. WorkSafe Tasmania Scheme Update
Brad Parker
Director Compensation and Communication
© WorkCover Tasmania Board
This presentation has been prepared for the Actuaries Institute 2013 Injury Schemes Seminar.
The Institute Council wishes it to be understood that opinions put forward herein are not necessarily those of the Institute and the Council is not responsible for those opinions.

2. Today we will cover Overview of the Scheme Recent developments
Insured sector experience
Asbestos Compensation Fund
WorkCover Tasmania Initiatives

3. Scheme Overview In 2012-13: 7 Licensed Insurers 11 Self Insurers
Tasmanian State Service
Total Written Premium $145,000,000
FTE workers
8 400 new claims reported
5 500 (or 66%) of claims received weekly benefits
Total claims payments $147 million
Total weekly benefits $49 million
Lump sum benefits $41 million
Medical and related benefits $46 million
Average claim size $17 500
Average medical and related benefits $5400

4. Recent developments WIMS went live 1 July 2012
Resulted in a higher than usual level of uncertainty in the data for the first six months following implementation. However a number of initial teething problems have now been sorted out with only a small number of issues left to resolve
Primary Treating Medical Practitioner Role introduced July 2010
Requires medical professionals to spend more time with injured workers at the initial consultation to ensure claimants are being treated appropriately
Resulted in an increase in above-medical-excess claims, but we think these relate to claimants with more minor injuries
Impairment assessment guides v3 introduced October 2011
The intention of the revised Guidelines was to provide clarification on the methodology to be applied in assessing Whole Person Impairment (WPI), but there have been concerns raised by insurers and doctors that the new Guidelines may result in higher WPI assessments, in particularly for injuries involving spinal fusion
The scheme actuaries have allowed for a 4% increase in lump sum costs as a result

5. Coverage
Wages increased by 3% in real terms (i.e. after adjusting for inflationary increases). This is the first real increase in wages since 2009
Note these figures have been inflated to 30 June 2013 values, in order to control for the impact of inflation. Any trend therefore reflects real growth (i.e. in excess of inflation).

6. Total claim numbers
Total claims have reduced over the ten year period shown, with a sizable reduction in the last year

7. Above excess claim numbers
Above excess claim numbers have increased over the ten years, with the large increase in 2010/11 attributed to the Primary Treating Medical Practitioner role
The above excess proportion has increased from 60% to 90%

8. Above excess claim frequency
Above excess claim frequency is currently estimated at around 0.80 claims per $m wages
Note, the increase in FY11 is believed to be as a result of the introduction in the Primary Treating Medical Practitioner role.

9. Claim payments
After increasing over the last ten years, weekly benefit payments have reduced a little in the last year (1% lower)
Medical payments have also reduced in 2012/13 (5% lower)
Note these figures have been inflated to 30 June 2013 values, in order to control for the impact of inflation. Any trend therefore reflects real growth (i.e. in excess of inflation).

10. Claim payments (cont’d)
After some stability in lump sum and legal costs, both payment types were considerably higher in 2012/13
Lump sums impacted by some very large payments in the year
There is also a timing impact due to the 2009 amendments
Redemptions delayed due to the two year rule that is only now being reached
Note these figures have been inflated to 30 June 2013 values, in order to control for the impact of inflation. Any trend therefore reflects real growth (i.e. in excess of inflation).
Note some really large settlements are impacting the 2013 year. And there are potentially more to come (there has been press about the recent largest ever award for common law damages recently).

11. Lump sum numbers
The number of redemptions has decreased in the first two years following accident – catch up is now evident
Offsetting this, the number of impairment benefits have increased
Potentially reflects claimants receiving their impairment benefit in advance of the redemption
Common law not shown as only four common law claims have been paid in the post-amendment period. One to monitor going forward.

12. Premium rates
Suggested premium rates have increased by 4% p.a. since 2010/11 while achieved rates have increased 5% p.a.
Achieved rates remain around 20% below suggested rates

13. Implications for profitability
While achieved premium rates have increased, the scheme actuaries estimate that insurers (as a whole) continue to make losses on this business
Our current estimated costs for the 2008 to 2012 years indicate that insurers could be making losses on this business of the order of around 5% to 20% of premium. We note however that this is an uncertain conclusion as substantial amounts of estimated costs for these years remain unpaid, and there is a higher than usual level of uncertainty for the two latest years due to the introduction of the 2009 amendments.

14. Asbestos Compensation Fund

15. Asbestos Compensation Fund
Established on 1 October 2011
Insurers, self insurers and the Tasmanian State Service pay a levy of 4% of premium to pay for the Fund
58 claims reported since inception
34 claims accepted
19 ‘new’ claims, 15 ‘backlog’ claims (i.e. diagnosed prior to Scheme commencement)
15 claims assessed as less than 10% WPI and therefore not eligible for compensation; these claimants’ diseases may develop such that WPI exceeds 10% in the future
6 ineligible for compensation and 3 reported with incomplete information
About 2/3rds of accepted claims were ‘fatal’ i.e. mesothelioma and lung cancer

16. Asbestos Compensation Fund (cont’d)
Just over $10 million paid by the Fund by 30 June 2013
Almost all of this (98%) is in respect of lump sum payments and funeral benefits
Very little has been paid in medicals or weekly benefits

17. New WorkSafe Tasmania Initiatives

18. Fair and Sustainable Project
The WorkCover Tasmania Board has initiated a project to define what constitutes a sustainable premium range for fair levels of compensation for workers in the Tasmanian Workers Compensation Scheme
The Fair and Sustainable Project, will assess and make recommendations on:
what constitutes a sustainable workers compensation premium range for employers in the Tasmanian Workers Compensation Scheme?
what constitutes fair levels of workers compensation for workers in the Tasmanian Workers Compensation Scheme?
what constitutes fair and sustainable workers compensation coverage in the Tasmanian Workers Compensation Scheme?
what proportion of Tasmania’s Workers Compensation Scheme costs should be paid directly to the worker?

19. Workplace Bullying in Tasmania
The WorkCover Tasmania Board established a working group charged with investigating –
the prevalence of workplace bullying in Australia and Tasmania
the role of workplace cultures in preventing and responding to bullying
the adequacy of existing education and support services to prevent and respond to workplace bullying  
whether the existing regulatory frameworks provide a sufficient deterrent against workplace bullying
the most appropriate ways of ensuring bullying culture or behaviours are not transferred from one workplace to another
possible improvements to the national evidence base on workplace bullying

20. Scope of Survey
The Board commissioned a survey commenced in late August and the survey continues to collect data through September and early into October.
A three-stage survey methodology is being applied that includes:
Stage One – Tasmanian Community Bullying Survey
Stage Two – Workplace Bullying Depth Interviews
Stage Three – Workplace Bullying Organisational Research
It is important to note that a proportion of the sample has been collected to date and preliminary findings are not yet available.

21. Accredited Medical Practitioners Online
New Initiatives to Support Role of Primary Treating Medical Practitioner
Accredited Medical Practitioners Online
Medical Mentoring and Advisory Service
Medical Practitioner's Handbook

22. Accreditation Medical Practitioner Online (AMPO)
Integrated approach to management of accredited medical practitioners:
Register
Apply for accreditation
Access training and reading materials
Complete assessment
Code of Conduct
Access a range of resources
Manage accreditation
Participate in ad hoc training

23. Accreditation Medical Practitioner Online (AMPO)
Training content:
WorkSafe Tasmania and the scheme
Roles and responsibilities of the Primary Treating Medical Practitioner
Certification including case study
Benefits of return to work
Evidence based practice

24. New Medical Practitioner Handbook
Developed by WorkSafe Tasmania in consultation with medical practitioners
Developed for accredited medical practitioners involved in managing patients with a workplace injury or illness
Aims to:
Provide a holistic and practical understanding of the injury management process & its philosophies
Highlight the role and responsibilities, and those of others involved in the injury management process
Explain WorkCover Tasmania’s expectations of the role in the management of patients with a workplace injury or illness.

25. Medical Practitioner Handbook
Divided into three main sections:
Preparing for the consultation
Injury management
People involved in the injury management process
During the consultation
Clinical framework principles of injury management
Workers Compensation Medical Certificates
Assessing the injured worker
After the consultation
Planning the worker’s treatment and return to work
Other health care professionals

26. WorkSafe Tasmania Scheme Update
Brad Parker
Director Compensation and Communication
© WorkCover Tasmania Board
This presentation has been prepared for the Actuaries Institute 2013 Injury Schemes Seminar.
The Institute Council wishes it to be understood that opinions put forward herein are not necessarily those of the Institute and the Council is not responsible for those opinions.