Key facts:

·       Self-insurance is saving employers between 30-50% on the annual cost of providing worker’s compensation.

·       Many of HIMS’ clients were operating on premiums of between $3-12 million, and by switching to self-insurance immediately improved cash flow and productivity.

·       HIMS is a self-insurance specialist for firms with payrolls over $20mil +.

SYDNEY, NSW, 31 May 2021: According to self-insurance leader, Health & Injury Management Solutions (HIMS), major companies that have switched to self-insurance over the last four years are saving between 30-50% on the annual cost of providing worker’s compensation. 

Mr Chris Douglas, Director of HIMS Group Australia, said “In the 1930’s a new licensing regime in New South Wales was introduced that permitted employers to self-insure their workers’ compensation obligations. The compliance regime was very thorough and potentially expensive to maintain and so was generally only viable for very large employers.

“Earlier in the 1920’s South Australia precipitated a shift to allow self-insurance and then across Australia as other jurisdictions followed suit, with the Commonwealth scheme becoming available to certain employers in YEAR.

“Businesses who remain shackled to the traditional workers’ compensation schemes continue to experience ever increasing premiums for worker’s compensation insurance. Many of our clients were operating on premiums of between $3-12 million, so by self-insuring their workers’ compensation, they immediately made direct savings by not paying an annual premium, which improved cash flow.”

Why consider switching to self-insurance of workers compensation? 

Self-insurance enables an organisation to manage its liabilities and control workers compensation costs more efficiently than participating in an insured compensation scheme. Moreover, instead of paying a premium and adjustment each year, the claims costs in a self-insured program develop over time.

“As a self-insurer, an organisation can manage its claims more efficiently, as it understands the workplace and employees better than an insurance company. This provides C-suite executives such as CFOs, CEOs and HR leaders within an organisation with budgeting consistency and improved bottom line results” Mr Douglas said.

 

“If an employee is injured, the employer can promptly offer suitable duties because claims and injury management services are integrated into the business. In comparison, a representative from an insurance company may not be as well placed to discuss suitable employment alternatives for an injured worker.”

Additionally, self-insurance presents a potential human resources dividend in a more contented and committed workforce.

“Employees often appreciate that an employer with a self-insurance program is taking a direct interest in their health and wellbeing outcomes.

Why work with a self-insurance advisory and claims management service? 

A self-insurance advisory service such as HIMS manages personal injury claims by working very closely with its clients.

“We understand that your employees are your most valuable resource and that a positive workforce depends on employees knowing that they will be cared for by experienced and compassionate people when they are injured at work.

We focus on getting people well and back to work and this helps protect the bottom line.” 

“For over 20 years, our team members have been helping Australian businesses become self-insured and manage their workers’ compensation claims,” said Mr Douglas.

With offices across Australia, the HIMS Group provides the complete self-insurance solution that enables managers and executive leaders to focus on their core businesses, whether it’s manufacturing, financial services, telecommunications, healthcare, logistics, construction, retail sales or food retailing.

“We provide self-insurance feasibility assessment, licensing application support, regulatory communication and claims management.”

Early intervention is crucial to improving employee’s health to allow them to return to work and everyday life. According to Mr Douglas, the HIMS National Injury Hotline, together with its dedicated medical provider and imaging services networks, and in-house medical specialist, are all key tools which help HIMS clients to achieve early and durable return to work outcomes.

“Our focus is on helping our clients meet their regulatory obligations as self-insurers, providing advice and managing claims on their behalf.”

 

To find out more about switching to self-insurance, contact HIMS Group (02) 8378 2121