Workers’ Compensation Market Insights 2021
Snapshot
- Workers’ compensation performance over the past couple of years has seen most schemes deteriorate, particularly the Managed Funds of NSW, VIC, QLD and SA.
- COVID-19 has had an impact on workers’ compensation performance, with claim numbers reducing.
- However, costs have remained relatively static as durations for claims have increased and mental health injuries have become more prominent.
With the current state of the workers’ compensation market the three areas of most concern are:
- The financial performance of the two largest markets, NSW and VIC.
- Increasing claims costs, largely driven by increasing claims durations.
- The continued emergence of mental health injuries.
Noting these three areas, Aon recommends that employers:
- Review their workers’ compensation performance to ensure traditional insurance remains the most viable option when compared to self-insurance.
- Review their internal strategy to manage employees’ mental health and wellbeing.
- Improve injury management and return-to-work practices to mitigate increasing claims costs.
Download the Workers’ Compensation Market Update below for further information.
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