Economic incentives in OSH Key results of the case study report Workshop 4-5 Feb 2009, Bilbao Marc...

Economic incentives in OSHKey results of the case study reportWorkshop 4-5 Feb 2009, Bilbao

Marc De Greef

www.prevent.be Economic incentives in OSH: Case study report 2

Content

1. Introduction

2. Case studies

3. Conclusions

1Introduction


Introduction

Report: 12 successful case studies and 5 snapshots in 10 member states

Focus on financial incentives Distinction between

accident insurance premium differentiation subsidies, grants


Overview of the incentives (1)


Overview of the incentives (2)

2 Case studies


Innovative case studies

Insurance premium variation:

Premium discount in the Farmers’ workers’ Compensation Insurance – Finland

Funding scheme:

Business financing for Programmes and Projects in OSH - Italy


Premium discount model - Finland Farmers employment accident insurance

(MATA) Premium discount Purpose: decrease in accident rates Target group: Self-employed Finnish farmers

Mandatory scheme for farmers with annual income > 3093 euros with > 5 hectares of land

Voluntary for other farmers


How does it work? Efficiency rating of individual company based

on the accident rate Each claim free year:

premium reduction: 10% every consecutive year: +10% max of 50% for 5 consecutive years

Each compensated accident: 10% loss of discount Upper limit


Results and evaluation

Decrease in injury rate (5%) after programme implementation

Decrease in overall injury rate: 10.2% Decrease in severity rate

0 days: 16% 7-13 days: 19% 1-6 days: 14% 14-29 days: 8%

Under-reporting Could contribute to decrease But: amount of premium discount is lower than amount of

claim


Success factors

Programme is mandatory, nation wide Self-employed -> no difference between

employer and employee motivation Experience rating at individual level Assessment and follow-up of results


Business financing - Italy Financial funding for SMEs in the craft and agriculture

sector Initiated by INAIL (Instituto Nazionale per

l’Assucurazione control gli Infortuni Sul Lavoro) Aim: compliance with safety regulations, decreasing

# of accidents, improving of OSH Two types of projects:

programmes to improve compliance with OSH regulations training and information programmes to increase the level of

OSH


Scope of the project

Compliance programme: Renewal of machinery, refurbishment of work

environment, system renewal, installation of monitoring systems, promotion of a safety management system

€ 232 M Training and information programme:

Increasing workers’ awareness of OSH risks and reducing the human error

€ 78 M


Interest account funding Credit line (loan) by banking institutions for

selected projects Zero interest for company Related interest, charges and additional

charges covered by INAIL (max. 155.000 € per project)


Capital account funding Financial support, additional to interest funding,

in case of excellence INAIL covers max. of 30% of interest funding

(max. of 46.000 €) Non refundable Funding strands:

modification and reengineering of systems, machinery, devices and processes, decrease of exposure to hazardous products, refurbishment of work environment

implementation of safety management systems.


Criteria Priority to companies with high # of accidents

according to the severity index parameter Characteristics of the applicants # of workers that are targeted Features and target group of the planned

actions Collaboration between different bodies Completeness/adequacy of the proposed

actions/tools Level of usability and transferability to other

groups.


Results and evaluation (1)

In general Increasing interest of applicants Decision to widen the target group to all companies

accross all sectors of activity Sectors with highest number of applications

machine tools agriculture



Compliance programme Projects on prevention and accident reduction Applications for tangible projects such as purchase of

equipment Variation in application according to company

dimensions micro-enterprises: purchase of equipment (productivity) > 10 employees: actions to improve working conditions



Training and information

Applicants: employers associations, consortia of companies, bilateral organisms

Sectors: espec. services, construction, agriculture, metal working

Training & info Training tools

Resources 66,106,483 11,362,051

Funding applied for 113,040,642 95,414,117

Projects submitted 6,340 829

Eligible and financed projects 4,789 118



Comparison of group with and without funding Injury trends from 2001-2005 Injury frequency index shows stronger decrease in

group benefiting from funding than the control group

3 Conclusions


Some conclusions (1)

Bonus/malus schemes are often mainly interesting for larger companies

Incentives based on prevention efforts are more interesting for SMEs

Attractiveness of scheme enhanced by The extent of the incentive The transparency of criteria The importance of the administrative burden The straightforwardness of the communication


Some conclusions (2)

New approaches: focus on sustainability and future actions.

Combination of schemes Subsidised loans for SMEs

Compatibility of different co-existing incentives, social security schemes and other relevant legislation

Effective indicators to evaluate and monitor results are needed.

Thank you !

Marc De Greef

[email protected]

Economic incentives in OSH Key results of the case study report Workshop 4-5 Feb 2009, Bilbao Marc...

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