Strengthening scheme outcomes in Victoria

Denise Cosgrove

Chief Executive, WorkSafe

27 February 2014

Our Vision Victorian workers returning home

safe every day

Our Mission Working with the community to deliver

outstanding workplace safety, together with

quality care and insurance protection to

workers and employers

WorkSafe 2017 outcomes

Page 3

WorkSafe 2017 targets

Summary of results

Strong Safety results

Modest

progress Service results

Improved Return to work results

Positive Financial Results

We have challenges ahead

• Victorian workplaces are changing and these shifts impact on workplace safety and return to work

• Our performance is at risk of reaching a plateau

• Victoria expects us to do more

4-week claim trajectory

Projected trend based on a 0% change in the March 2013 year-on-year result.

2.0

2.2

2.4

2.6

2.8

3.0

3.2

3.4

Ju

n-0

7

De

c-0

7

Ju

n-0

8

De

c-0

8

Ju

n-0

9

De

c-0

9

Ju

n-1

0

De

c-1

0

Ju

n-1

1

De

c-1

1

Ju

n-1

2

De

c-1

2

Ju

n-1

3

De

c-1

3

Ju

n-1

4

De

c-1

4

Ju

n-1

5

De

c-1

5

Ju

n-1

6

De

c-1

6

4 Week CpMHW

Current trend projection

WorkSafe 2017 Target

Not yet at work

18.00%

19.00%

20.00%

21.00%

22.00%

23.00%

24.00%O

ct-

07

Ap

r-0

8

Oct-

08

Ap

r-0

9

Oct-

09

Ap

r-1

0

Oct-

10

Ap

r-1

1

Oct-

11

Ap

r-1

2

Oct-

12

Ap

r-1

3

Oct-

13

Ap

r-1

4

Oct-

14

Ap

r-1

5

Oct-

15

Ap

r-1

6

Oct-

16

Ap

r-1

7

Not yet at work

W2017 target

Current trend projection

81.00%

82.00%

83.00%

84.00%

85.00%

86.00%

87.00%

88.00%

2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

'Employee/worker service'

W2017 Target

Current trend projection

Service targets and trajectory

A well-managed program of change

focused on the future

Safety / Health & Safety Strategy

including Modern Regulator

/ Initiatives arising from the

Health & Safety Strategy

Return to work

/ Health Benefits of Safe

Work

/ Better at Work project

Service

/ Online claims management

for injured workers and

employers

/ Streamlined treatment

requests

Sustainability / Value for Money Review

/ Agent Model Review

/ Our People Strategy

/ IT Strategy

Agent Model Review

Objectives

• Create more scope for Agents to innovate;

• Reduce the emphasis on process;

• Improve the efficiency of the model;

• Retain the most effective elements of the

existing mode; and

• Enable better support for attainment of

WorkSafe 2017 goals

Macro projects in the last 5 years have

saved $540m to $780m, but micro

projects less valuable Estimated Liability Value of WorkSafe Projects

in 5 years to 31 December 2012

$0m

$100m

$200m

$300m

$400m

$500m

$600m

$700m

$800m

$900m

Macro

Projects

Micro

Projects

Agent Outlier

(Long Tail)

Esti

mat

ed

Lia

bili

ty V

alu

e

Upper estimate

Lower estimate

* Numbers are indicative of relative value only and should not be relied upon as an exact quantification of

value

Maintain macro

interventions

(but make more

efficient)

Substantially

reduce micro

interventions &

process

Reduce WorkSafe

Involvement in

Agent structures

& roles

WorkSafe 2017 Rationalise

Agent engagement

(principles/contacts)

Simplify & stabilise

incentive system

(more outcome based)

Minimum training

standards for

functions (not role)

Scheme monitoring

remains core

strength

Potential opportunities for

improvement