WorkSafe Victoria

Scheme Update

Tehn Chin & Julie Evans

13 November 2017

Contents

• where we are today

• changing environment

• where we are going: Strategy 2030

WHERE WE ARE TODAY

SafetyStrong positive result

ServiceStrong

employer/worker satisfaction

SustainabilityFinancially sound

Culture &

PlaceTransition & uncertainty

Return to

WorkMental health

challenge

End of Financial Year 2016-17

2012 to 2017 Overview

• 22 % reduction in claims per million hours worked –

largest reduction on record

• improved rate of return to work, but target unmet

• increase in mental health injury

• WorkSafe financially sound

• delivery of service – workers and employers satisfied

• 2016/17 the safest year on record

Safety

Our measures:

• Claims per million hours worked (CpMHW)

– our headline measure of safety

– million hours worked in a better measure of

exposure of risk than count of worker

• 4 week claims per million hours worked (4wkCpMHW)

– indication of severity and complexity of the claim

Strong improvement in CpMHW

Moderate improvement

in 4wk CpMHW

2.97

2.0

2.5

3.0

3.5

4.0

Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17

4 wk CpMHW

6.43

6.0

6.5

7.0

7.5

8.0

8.5

Jun-12 Dec-12 Jun-13 Dec-13 Jun-14 Dec-14 Jun-15 Dec-15 Jun-16 Dec-16 Jun-17

CpMHW

Safety Challenges

• mental injury

• occupational violence

• claim statistics suggest

more prevalent in some

industries, occupations

eg. healthcare workers

Return to Work

• return to work is part of the worker’s recovery –

employer, agent and treating health practitioner

have critical roles to play

• our measure: % Return to Work

– the percentage of claims with 10 days of time

loss reported in a 12 month period, that are back

at work six months after claim lodgement

% Return to Work

• Impacted by mental

injury claims

– greater mix of

mental injury; and

– return to work rates

reducing for mental

injury claims

Mental Injury 54.5%

Physical Injury 81.8%

All claims 78.5%

30%

40%

50%

60%

70%

80%

90%

30

-Ju

n-1

2

31

-Dec

-12

30

-Ju

n-1

3

31

-Dec

-13

30

-Ju

n-1

4

31

-Dec

-14

30

-Ju

n-1

5

31

-Dec

-15

30

-Ju

n-1

6

31

-Dec

-16

30

-Ju

n-1

7

Sustainability

• scheme is financially sound

– actuarial increase/(release): $169m

– break-even premium: 1.262%

– PFIO: $233m

– funding ratio: 119%

• key challenges:

– increasing mix of mental injuries claims

– more workers remaining on weekly benefits for longer

(physical and mental injuries)

Actuarial release challenges

394

511

78

189 136

182 179

303

(60) (135) (169)-300

-200

-100

0

100

200

300

400

500

600

06/0

7

07/0

8

08/0

9

09/1

0

10/1

1

11/1

2

12/1

3

13/1

4

14/1

5

15/1

6

16/1

7

$m

Historical Actuarial Releasesby Financial Year

More mental injury, on benefits longer

Worker serviceEmployer service Community service

90.4%91.3%

90.3%

2015/16

result2016/17

target

Service

7982

75

Sustainable engagement index

2015/16

result

2016/17

target

Culture & place

• We are passionate about

our vision:

– Victorian workers returning

home safe every day

• But undergoing a period

of significant transition:

– Geelong relocation (Jun-18)

– Strategy 2030

CHANGING ENVIRONMENT

The nature of work is changing

Increasing mobility / work from anywhere

Changing industry mixChanging jobs through automation

Greater exposure to global supply chains

Increasing workforce flexibility

Expanding definition of workplace

Trends & predictions

Service industries

Mental injuries

Older workers

Claims

Community expectations

Online services

Employer support and

guidance

Post injury support

Empathetic and seamless

STRATEGY 2030

Strategy 2030

Analytics and data

Prevention-led

Simplifying WorkSafe’s

business

Focused on the needs of workers and employers

Leading the way and

adapting quickly

Offering tailored products,

services and support

Sharing goals & outcomes

with the community

Prevention-led transformation

WorkSafe invests in being more efficient in targeting health and safety risks.

WorkSafe has effectively demonstrated ROI on prevention at employer level.

WorkSafe invests in enabling employers and employees to take greater ownership in preventing injuries.

Workplaces are enabled through tools and education to deliver greater self assessment and RTW outcomes.

WorkSafe invests in changing community views and expectations so that the community takes ownership of prevention.

Communities assist with hazard prevention induction, delivery of RTW outcomes through emotional support and creation of employment opportunities.

WSV-owned prevention

Community-owned prevention

Workplace-owned prevention

Early opportunities

Work is now underway on key initiatives

Website redevelopment

Simplification of guidance materials

Data and analytics

Innovation Centre

Detailed design

e.g. process mapping

• 140 workshops

• over 3,000 processes mapped

• Develop a picture of WorkSafe at its future best

• Re-think processes in line with S2030

Timeline

Build and delivery of early

opportunities

Establish enabling capabilities

Business and technology

design

Enabling capabilities matured

Initial transformation packages

completed

Ongoing rollout and

completion of transformation

packages

Commencement of final

transformation packages

HORIZON 3 (to mid 2023)HORIZON 1 (to mid 2019) HORIZON 2 (to mid 2021)

ONGOING COMMS & ENGAGEMENT, CAPABILITY & CULTURAL CHANGE MANAGEMENT

THANK YOU – ANY QUESTIONS?