WorkSafe Victoria announces strong half-year results
WorkSafe Victoria has announced results for the first half of 2011-12, with the key indicator of health - performance from insurance operations (PFIO) returning $118m, up from $61m in the previous corresponding period.
The PFIO measures scheme financial performance and strips out the impact of things that it cannot influence such as investment market volatility and inflation which can otherwise mask strong or poor operating performance.
WorkSafe Chief Executive, Greg Tweedly, said the six month period saw Victoria achieve a new record-low rate of injury amongst workers, with a rate of 10 injuries per 1000 workers (down from 10.49 at the previous corresponding period).
Victoria continues to charge the lowest average premium rate of any WorkSafe scheme in Australia.
Mr Tweedly said improved health and safety outcomes along with further improvements in claims management also led to the scheme achieving a $10 million actuarial release.
“This is a strong result for the community and reflects the ongoing efforts by employers and workers across the state, however this positive outcome masked a further deterioration in common law liabilities, which rose from $2.1 billion to $2.4 billion.
“The deterioration was largely driven by the actuaries’ recognition of increased lodgements of common law claims, particularly those at the lower end of the serious injury spectrum.
"Should this trend continue, the actuaries have indicated strongly that there will be further increases in liabilities in future valuations.
Mr Tweedly said despite the fundamental strength of the scheme, WorkSafe like other investors had been affected by sluggish investment markets and reductions in interest rates leading to a $641m after-tax operating deficit.
Mr Tweedly said further gains could be made if employers and injured workers actively pursued safe and sustainable return to work at an earlier stage.
“This will have flow-on benefits for individuals and the Victorian economy.
“Any injury adds significantly to the cost of doing business, while investing in safety improvements reduces it,” Mr Tweedly said.