scheme status report - workcover wa · 2018-11-08 · this scheme status report presents the status...

Scheme status report

March 2015

.

Data used in this report was extracted from WorkCover WA databases on 13 July 2015. Data reflects scheme activities that

occurred prior to and including March 2015.

Scheme status report: March 2015

Citation

WorkCover WA


Perth, Western Australia: Western Australian Government

Any queries or comments on this publication should be directed to:

Business Intelligence Services Branch

Legislation and Scheme Information Division

WorkCover WA

Phone: (08) 9388 5555

Fax: (08) 9388 5550

© WorkCover WA, Government of Western Australia

This publication is available at the WorkCover WA website:

www.workcover.wa.gov.au

Published by the Western Australian Government

Publication date: 24 August 2015

.

There is no objection to this publication being copied in whole or part, provided there is due acknowledgment of any material

quoted from the publication.

WorkCover WA 2 Data as at 13 July 2015


Table of contents

Page

Introduction 4

Section 1: Key indicators of WA workers' compensation scheme 5

1.0.1: Overview 5

Summary

1.1.1 - 1.1.6: Claim numbers 7

1.2.1 - 1.2.3: Claim payments 9

1.3.1 - 1.3.3: Estimated costs 10

1.4.1 - 1.4.3: Claim management 11

1.5.1 - 1.5.2: Disputes 12

1.6.1 - 1.6.2: Common law applications 13

1.7.1 - 1.7.4: Settlements 14

Section 2: Approved insurer and Self-insurer comparison 16

2.1.0 - 2.1.5: Claim numbers 16




2.5.0 - 2.5.6: Settlements 31

Section 3: Tables 34

3.1.1 - 3.1.5: Claim numbers 34




3.5.1 - 3.5.2: Disputes 39

3.6.1 - 3.6.7: Common law and settlements 40

Section 4: Glossary 42

Disclaimer 45



The report is presented in three sections:

3. Data tables: details of annual and quarterly values for all indicators presented in the report.

Notes for the reader:

Different reporting timeframes for two indicators: lost time and estimated claim costs

About this report

Lost time claim indicators (Indicator 1.1.5 and 1.1.6 in the report) allow for lost time estimates to mature and therefore are

only reported up to the September (Q1) 2014/15 quarter (lag time of two financial quarters).

Estimated claim cost indicators are only reported up to the March (Q3) 2013/14 (lag time of one financial year).

Estimated claim costs are strongly influenced by how insurers model and predict costs and are subject to significant

development over time. This timeframe is based on analysis by WorkCover WA which shows that estimated claim costs

have largely stabilised 12 months after claim lodgement.

2. Approved insurer and self-insurer comparison: detailed information presented in charts and graphs about

approved insurers and self-insurers performance in relation to claim numbers, payments, estimated costs, claim

management and settlements. This supplements information presented in Section 1.

Claims data used in the report is derived from data supplied by insurers and exempt employers in accordance with the Q1

specification which can be found on WorkCover WA's website at www.workcover.wa.gov.au.

This Scheme Status report presents the status of key elements of the WA workers’ compensation scheme for the

March 2015 quarter i.e. encompasses all new activity within the scheme between 1 January 2015 and 31 March 2015.

Comparisons are made with previous quarters spanning the last four years i.e. March (Q3) 2010/11 to March (Q3) 2014/15.

1. Key indicators: a high level overview that summarises long and short term trend changes for key elements within

the WA workers' compensation scheme.

Introduction

The scheme status report is produced on a quarterly basis to measure trends and variations in relation to key elements of

the WA workers’ compensation scheme including:

• claim numbers

• claim payments

• estimated costs

• claim management

• disputes, common law and settlements.

Scheme status report

Data from the Insurance Commission of Western Australia (ICWA) is also included in this report. ICWA manages workers'

compensation arrangements for WA government agencies. Although not an approved insurer within the WA workers'

compensation scheme, ICWA is considered to be more appropriately 'grouped' with approved than self-insurers.

WorkCover WA is the government agency responsible for overseeing the workers' compensation and injury management

system in Western Australia (WA).

WA operates a privately underwritten workers’ compensation scheme. This means that private insurance agencies are

approved by WorkCover WA to provide workers’ compensation insurance to WA employers. Additionally WorkCover WA

also exempts large employers, who have the material and financial resources to cover their own liabilities from any

workplace injuries that may occur, from having to obtain workers' compensation insurance from an approved insurer.

Exempt employers are commonly referred to as self-insurers. Currently, there are eight approved insurers and 26 self-

insurers operating within the WA workers’ compensation scheme.



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•

•

•

•

•

•

•

•

•

•

•

•

Estimated costs

•

•

* See Glossary for definition and further explanation.

Total estimated costs are subject to significant development as claims mature and therefore indicators of estimated costs

have a one year lag time. Within this report, estimated costs are reported up to December 2013, in order to provide

meaningful comparisons over time.

Common law applications

Over the reference period, total and average estimated claims costs increased slightly for both approved insurers and self-

insurers.

The number of dispute applications (conciliation) and the disputation rate increased over the reference period.

The proportion of active claims that had common law applications decreased (3.5%) over the reference period.

During the reference period, the proportion of claims finalised through Section 92(f) deeds increased to 6.5%.

The proportion of claims finalised by Memorandum of Agreements* remained stable at 11.5%.

Settlements

Summary of changes between March (Q3) 2012/13 and March (Q3) 2013/14

Claim payments continue to increase over time. This can be attributed to the increasing proportion of longer duration

claims (60 days or more lost time) in the scheme. Income replacement payments and lump sum payments (common law

and settlements) have increased.

The proportion of claims finalised through settlements has increased.

The management of claims by insurers has improved over time. The proportion of claims where liability decisions are made

within the specified legislative timeframes (14 days for approved insurers and 17 days for self-insurers) remained stable.

Summary of key changes between March (Q3) 2013/14 and March (Q3) 2014/15

Number of workers' compensation claims

Section 1: Key indicators

Overview

Four year summary (June (Q4) 2010/11 to March (Q3) 2014/15 quarter)

The number of claims received by insurers in the WA workers' compensation scheme decreased to 8,177 in March (Q3)

2014/15. The incidence rate decreased over the past four quarters to 0.59 claims per 100 employed people, the lowest rate

over the previous four years.

Disputes

Claim management

The average claim duration has increased over the four year period - currently at 7.8 months.

The number of new claims lodged in the WA workers' compensation scheme during the reference period decreased by

8.2% while the incidence rate of claims (number of claims per 100 workers) decreased by 10.4%.

The number of 'active' income claims in the WA workers' compensation scheme (i.e. had a transaction payment during the

period) declined by 7.1% during the reference period.

Claim payments increased by 5.6% over the reference period.

Payments direct to the worker and legal and other service payments both increased (5.4 % and 7.8% respectively) whilst

treatment service payments remained stable.

The average claim duration remained stable over the reference period and stands at 7.8 months.

The proportion of claims meeting legislative timeframes for liability decisions and insurer lodgement was stable.

Claim payments



1.0.1 Key indicators - Claims

Current

quarter

% change

from previous

quarter

Claim numbers (pg 7-8)

Total claim count 8,177 -8.1 -8.2 ▼Incidence rate 0.59 -7.1 -10.4 ▼Total active income claim count 17,822 -3.8 -7.1 ▼

Claim payments (pg 9)

Total payments ($m) 234.6 0.8 5.6 ▲Total payments direct to worker* ($m) 158.8 2.4 5.4 ▲Total payments for treatment services* ($m) 50.8 -1.3 4.9 ■Total payments for legal & other services* ($m) 24.9 -4.5 7.8 ▲

Proportion of payments direct to worker (%) 67.7 1.6 -0.1 ■Proportion of payments for treatment services (%) 21.7 -2.1 -0.7 ■Proportion of payments for legal & other services (%) 10.6 -5.3 2.2 ■

Average claim duration (months) 7.8 -0.1 2.7 ■Proportion (%) of insurer lodgement period within the

legislated time (Insurers only: 5 days) 75.8 -1.5 0.0 ■Proportion (%) of income claims with initial liability decision

made within the legislated time (Insurers: 14 days, Self-

insurers 17 days)

87.8 1.8 0.4 ■

Disputes (pg 12)

Number of dispute applications 541 -1.6 12.9 ▲Disputation rate 2.0 -0.5 7.1 ▲

Common law applications (pg 13)

Common Law 2004 Scheme Applications as a proportion

of active claims (%) 0.8 3.4 -3.5 ■

11.5 -0.6 12.8 ▲

Section 92(f) deeds as a proportion of finalised claims (%) 6.5 18.3 28.5 ▲


▲ Increased by 5% or more

■ Increased/decreased by less than 5%

▼ Decreased by 5% or more

> +/- 5% change in year

Note that percentage changes are calculated on actual values whereas figures presented with graphs show rounded values.


Overview

Claim management (pg 11)

Settlements (pg 14)

Memorandum of Agreements* as a proportion of finalised

claims (%)

% change from same

quarter last year



Claim numbers

(

1.1.1: Total number of claims by insurer received quarter

1.1.2: Number of claims per 100 employed people (incidence rate) by insurer received quarter

Numbers of employees are based on Australian Bureau of Statistics Labour Force survey data, catalogue 6291.0.55.001

1.1.3: Total number of active income claims by transaction quarter



Summary:

The number of claims lodged each quarter decreased over time and dropped by 15.1% since June (Q4) 2010/11 (Indicator

1.1.1).

The rate of new claims (per 100 employees) has decreased over time. Between June (Q4) 2010/11 and March (Q3)

2014/15, the incidence rate (Indicator 1.1.2) decreased by 23.5%.

The number of active income claims decreased by 6.2% over the reference period (Indicator 1.1.3).

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

9,633 10,082 9,614 10,105 10,167 9,935 9,563 9,445 9,693 9,639 9,408 8,907 8,924 8,841 8,898 8,177

0

2,000

4,000

6,000

8,000

10,000

12,000

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

0.77 0.80 0.76 0.78 0.78 0.75 0.71 0.72 0.73 0.72 0.69 0.66 0.65 0.64 0.64 0.59

0.00

0.20

0.40

0.60

0.80

1.00

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

19,002 19,252 19,463 19,397 19,813 20,162 19,813 19,445 20,495 20,785 19,712 19,190 19,773 19,289 18,518 17,822

0

5,000

10,000

15,000

20,000

25,000

30,000



Claim numbers

1.1.4: Total number of claims per accident quarter

1.1.5: Number of lost-time claims (1-59 days and 60+ days) by insurer received quarter

1.1.6: Proportion of lost-time claims (1-59 days and 60+ days) in the September (Q1) 2014/15 quarter



Summary:

Shorter duration claims (1-59 days) decreased by 12.4% and long duration claims (60+ days) increased by 21.6% over the

reference period. As outlined in the Introduction, this indicator (1.1.5 below) has a six month time lag.

At the commencement of the reporting period, long duration claims comprised 23.9% of lost time claims. In the September

(Q1) 2014/15 quarter, longer duration claims comprised 30.3% of lost time claims (Indicator 1.1.6).

The number of claims per accident quarter* (Indicator 1.1.4) has declined by 17.6% from the beginning of the series. The

number of claims in the most recent accident quarter was the lowest over the four year period. It should be noted that data

for the last two quarters is subject to significant development over time.

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

1-59 days 3,548 3,505 3,454 3,670 3,424 3,549 3,582 3,576 3,422 3,420 3,487 3,339 3,196 3,087 3,047 3,109

60+ days 1,113 1,108 1,054 1,185 1,102 1,191 1,278 1,213 1,201 1,205 1,264 1,342 1,340 1,324 1,304 1,353

0

1,000

2,000

3,000

4,000

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

9,404 10,028 9,486 10,355 9,831 9,674 9,446 9,654 9,253 9,378 8,969 8,968 8,439 8,564 8,329 7,746

0

4,000

8,000

12,000

16,000

1-59 days70%

60+ days30%



Claim payments

D

D

1.2.1: Total payments by transaction quarter

1.2.2: Type of payments by transaction quarter

1.2.3: Proportion of payments by transaction quarter



Summary:

As shown in Indicator 1.2.1, claim payments have increased over the reference period. From June (Q4) 2010/11 to March

(Q3) 2014/15, total payments increased by 14.9%.

Over the reference period, payments direct to worker increased while legal and other services and treatment service

payments remained stable (Indicator 1.2.2).

The proportion of payment types (Indicator 1.2.3) was stable over the reference period.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

204.2 203.2 192.3 204.3 204.4 205.9 203.2 206.9 219.1 230.0 215.2 222.2 256.1 242.6 232.7 234.6

0

50

100

150

200

250

300

$ m

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Direct to Worker 133.5 132.3 119.1 134.7 130.1 131.4 133.2 139.7 143.2 148.8 141.1 150.7 175.7 158.7 155.1 158.8

Treatment services 48.3 48.4 51.0 48.6 50.9 51.5 48.0 47.1 52.4 56.0 50.8 48.5 55.1 56.2 51.6 50.8

Legal & other services 22.5 22.6 22.2 21.0 23.4 23.0 21.9 20.2 23.6 25.3 23.4 23.1 25.3 27.8 26.0 24.9

0

40

80

120

160

$m

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Direct to Worker 65.4 65.1 61.9 65.9 63.7 63.8 65.6 67.5 65.3 64.7 65.6 67.9 69.6 66.3 67.5 68.8

Treatment services 23.6 23.8 26.5 23.8 24.9 25.0 23.6 22.8 23.9 24.3 23.6 21.8 21.5 23.1 22.2 21.7


0

20

40

60

80%



Estimated costs

1.3.1: Total estimated claim costs by insurer received date

1.3.2: Total outstanding estimated claim costs by insurer received date

1.3.3: Average estimated claim costs by insurer received quarter


Indicators 1.3.1 and 1.3.3 show that both total and average estimated claim costs* have increased over time. Total

estimated claim costs increased by 31% from June (Q4) 2009/10 to March (Q3) 2013/14 and average estimated claim costs

increased by 39.4% during the same period.


Summary:

As outlined in the Introduction to this report, estimated claim costs are reported up to the March (Q3) 2013/14 quarter (one

year time lag). This is because estimated claim cost data is subject to significant development over time and information for

the most recent four quarters (June (Q4) 2012/13 to March (Q3) 2013/14) is still preliminary, based on analysis undertaken

by WorkCover WA.

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

167.6 185.0 187.9 188.7 183.0 209.4 191.0 209.0 236.7 211.5 223.2 222.3 239.1 242.2 231.7 219.6

0

50

100

150

200

250

300

$m

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

17,688 19,017 19,029 19,492 18,994 20,769 19,866 20,684 23,284 21,290 23,342 23,534 24,668 25,128 24,626 24,660

0

5,000

10,000

15,000

20,000

25,000

30,000$

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

3.9 4.3 4.4 12.9 6.1 11.1 10.8 15.0 22.4 19.3 26.6 37.9 45.2 58.5 64.8 71.0

0

20

40

60

80

$m



Claim management

1.4.1: Average claim duration by initial finalisation quarter



Summary:

1.4.2: Proportion of insurer lodgement period within five working days by insurer received quarter

1.4.3: Proportion of income claims with initial liability decision made within the legislated time (14 days for insurers

and 17 days for self-insurers) by insurer received quarter

Indicator 1.4.1 shows that the average claim duration has increased by almost one month from 7 months in the June (Q4)

2010/11 quarter to 7.8 months in the March (Q3) 2014/15 quarter.

The proportion of income claims lodged by employers with their insurer within five working days (legislative requirement,

effective 1 October 2011) has slowly improved (Indicator 1.4.2). In the current quarter, 75.8% of income claims met this

requirement.

The proportion of income claims where an insurer/self-insurer makes an initial liability decision* within the specified

legislative time requirement has been improving over the reference period. In the most recent quarter, 87.8% of income

claims had a liability decision made within the required time (Indicator 1.4.3).

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

7.0 7.0 7.0 7.0 7.2 7.1 7.0 7.5 7.5 7.4 7.5 7.6 7.7 7.7 7.8 7.8

0

2

4

6

8

10

months

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

72.1 78.0 76.6 74.8 75.6 77.8 75.5 74.9 72.3 75.7 76.8 75.7 76.6 77.8 77.3 75.8

0

20

40

60

80

100

%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

85.5 85.4 84.4 86.3 85.0 86.1 86.1 85.5 85.6 86.2 87.1 87.4 86.1 84.2 86.0 87.8

0

20

40

60

80

100

%



Disputes

1.5.1: Number of dispute applications^ by acceptance quarter

1.5.2: Number of dispute applications per 100 active claims (disputation rate) by acceptance quarter *

* The disputation rate is the number of dispute applications per 100 active claims by dispute acceptance quarter. The number of active

claims tends to revise upwards over time as more payment data is received. Therefore the disputation rate is preliminary for the most

recent quarter.


Summary:

^ Dispute data prior to December (Q2) 2011/12 relates to disputes lodged in the WorkCover WA Dispute Resolution Directorate (DRD).

The December (Q2) 2011/12 quarter relates to a transition phase between disputes services where the DRD ceased operation on 30

November 2011 and WorkCover WA's Conciliation and Arbitration Services (CAS) commenced on 1 December 2011 (data is not

reported due to existing dispute applications in the DRD being transitioned to CAS). Dispute data reported from the March (Q3) 2011/12

quarter onwards relates to disputes lodged in the Conciliation Service (within CAS) and is shown in a different colour to distinguish

between services.

The Conciliation and Arbitration Services (CAS) commenced on 1 December 2011. The number of dispute applications

received in the December (Q2) 2011/12 quarter is not reported as existing dispute applications transitioned from the

former Dispute Resolution Directorate (DRD) to CAS.

Indicator 1.5.1 and 1.5.2 show that between June (Q4) 2011/12 and March (Q3) 2014/15, the number and rate of new

applications lodged in the Conciliation Service have increased. The disputation rate between June (Q4) 2011/12 and

March (Q3) 2014/15 is increasing. See note below in relation to the December (Q2) 2011/12 quarter.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

460 431 323 403 392 422 362 436 435 496 530 484 569 560 541

0

200

400

600

800

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

1.61 1.49 1.09 1.34 1.27 1.41 1.24 1.41 1.39 1.68 1.85 1.62 1.96 1.99 1.98

0.0

0.5

1.0

1.5

2.0

2.5



Common law applications



Summary:

1.6.1: Number of Common Law 2004 Scheme applications* by application quarter

1.6.2: Common Law 2004 Scheme applications* as a proportion of active claims by application quarter

The number of common law applications has increased over the reference period, despite variations across quarters. This

trend is also reflected in the rate of applications as a proportion of active claims.

In the same period, the application rate (Indicator 1.6.2) increased by 7.7%

Between the June (Q4) 2010/11 and March (Q3) 2014/15 quarters, the number of common law applications (Indicator

1.6.1) increased by 9.6%.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

208 209 179 184 176 212 183 215 255 219 224 248 234 243 228 228

0

50

100

150

200

250

300

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

0.75 0.73 0.62 0.62 0.59 0.71 0.59 0.72 0.87 0.71 0.71 0.84 0.82 0.81 0.78 0.81

0.0

0.2

0.4

0.6

0.8

1.0%



Settlements

1.7.1: Memorandum of Agreements* as a proportion of finalised claims by finalisation quarter

1.7.2: Memorandum of Agreement* payments as a proportion of finalised claim payments by recording quarter


The proportion of claims that were finalised through Memorandum of Agreements* remained stable since the previous

quarter (Indicator 1.7.1).

The proportion of Memorandum of Agreement* payments to finalised claim payments decreased by 6.4% between June

(Q4) 2010/11 and March (Q3) 2014/15 (Indicator 1.7.2).


Summary:

A Memorandum of Agreement* is a legal instrument that records a settlement of a worker's compensation.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

9.07 10.66 9.96 8.93 9.19 10.07 10.32 9.95 9.57 10.41 11.26 10.19 10.48 11.86 11.56 11.49

0

5

10

15

20%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

16.16 17.06 14.04 14.58 13.86 13.92 13.77 11.54 13.12 13.60 13.65 13.22 13.17 11.67 11.55 9.72

0

5

10

15

20

%



Settlements

1.7.3: Section 92(f) deeds* as a proportion of finalised claims by finalisation quarter

* See Glossary for definition and explanation of Common Law applications and Section 92(f) deeds.


Summary:

1.7.4: Section 92(f) deed* payments as a proportion of finalised claim payments by recording quarter

The proportion of claims finalised through lump sums for damages against the employer without proceeding to court

(Section 92(f) deeds) has been increasing over time, although it should be noted that proportions of total finalised claims

remain low. In the most recent quarter (March (Q3) 2014/15), 6.5% of claims were finalised through Section 92(f) deeds

(Indicator 1.7.3).

The proportion of payments associated with Section 92(f) deeds to finalised claim payments increased since June (Q4)

2010/11 to March (Q3) 2014/15.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

2.64 3.86 3.16 3.61 3.82 4.32 4.72 4.06 4.12 5.08 5.02 5.04 5.17 5.26 5.47 6.48

0

2

4

6

8

10%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

9.49 11.52 10.37 11.82 11.58 12.11 14.36 10.09 10.88 12.63 15.02 14.78 11.71 10.23 12.97 11.54

0

5

10

15

20

%



Section 2: Approved insurer and self-insurer comparison

Claim numbers

a

2.1.0 Claim numbers

Current

quarter

% change from

previous quarter

Total claim count (pg 17)

Approved insurer 7,336 -7.9 -7.2 ▼Self-insurer 841 -9.7 -16.4 ▼

Proportion of claims (%) (pg 17)

Approved insurer 89.7 0.2 1.1 ■Self-insurer 10.3 -1.7 -8.9 ▼

Active income claims (pg 18)

Approved insurer 16,185 -3.7 -6.7 ▼Self-insurer 1,637 -4.3 -10.9 ▼

New: closed claim ratio (pg 18)

Approved insurer 0.97 -2.63 -5.4 ▼Self-insurer 0.97 2.97 -8.8 ▼





Proportion of claims in the March (Q3) 2014/15 quarter

This section presents detailed information about claim numbers, payments, estimated costs, claim management and

settlements at both the approved insurer and self-insurer level. It should be noted that for claim payment indicators contained

in this section, information is reported by different types of payment rather than at the insurer level.

Summary: March (Q3) 2013/14 to March (Q3) 2014/15

% change from same

quarter last year

The number of new and active income claims lodged (i.e. had a transaction payment during the period) decreased for both

approved insurers and self-insurers.

Both approved insurers and self-insurers had a decrease in the new to closed claim ratio.

Approved insurer90%

Self insurer10%




Claim numbers

Summary:

2.1.1: Total number of claims by insurer received quarter

2.1.2: Proportion of claims by insurer received quarter

2.1.3: Total number of claims by accident quarter

The long term trend (four year period) shows a decrease in the number of claims lodged with approved insurers (13.7%)

and self-insurers 25.4% (Indicator 2.1.1).

The proportion of claims received by both insurer types has remained stable over time (Indicator 2.1.2). In March (Q3)

2014/15, 89.7% of claims within the WA workers' compensation scheme were managed by approved insurers.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Approved insurer 8,505 8,952 8,568 8,953 9,099 8,954 8,575 8,343 8,679 8,616 8,463 7,901 8,001 7,943 7,967 7,336

Self insurer 1,128 1,130 1,046 1,152 1,068 981 988 1,102 1,014 1,023 945 1,006 923 898 931 841

0

2,000

4,000

6,000

8,000

10,000

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Approved insurer 88.3 88.8 89.1 88.6 89.5 90.1 89.7 88.3 89.5 89.4 90.0 88.7 89.7 89.8 89.5 89.7

Self insurer 11.7 11.2 10.9 11.4 10.5 9.9 10.3 11.7 10.5 10.6 10.0 11.3 10.3 10.2 10.5 10.3

0

20

40

60

80

100%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 1,086 1,109 1,069 1,161 1,052 943 1,059 1,094 1,002 993 979 973 872 904 866 792

0

2,000

4,000

6,000

8,000

10,000




Claim numbers

Summary:

2.1.4: Number of active income claims by transaction quarter

2.1.5: Ratio of new claims to closed claims

The number of active income claims (i.e. had a transaction payment during the period) has remained stable for approved

insurers and slightly decreased for self-insurers (Indicator 2.1.4).

The ratio of new to closed claims for both approved and self-insurers remained stable (Indicator 2.1.5).

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 1.05 0.90 1.03 0.92 0.90 1.00 1.00 1.09 0.83 0.97 1.00 1.07 0.78 0.96 0.94 0.97

0.0

0.5

1.0

1.5

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 1,981 1,928 1,881 1,858 1,977 1,881 1,839 1,855 1,937 1,883 1,785 1,838 1,835 1,801 1,710 1,637

0

4,000

8,000

12,000

16,000

20,000




Claim payments

2.2.0: Claim payments

Current

quarter

Total payments ($m) (pg 20)

Approved insurer 214.9 0.8 5.8 ▲Self-insurer 19.7 1.0 2.5 ■

Income payment 91.1 5.8 0.3 ■Lump sums (incl common law) 67.8 -1.7 13.3 ▲Medical and hospital 31.8 0.6 6.0 ▲Allied health and vocational rehabilitation 19.0 -4.8 2.9 ■Legal and other services 24.9 -4.2 7.9 ▲

Proportion of payments (%) (pg 21)

Approved insurer 91.6 0.0 0.3 ■Self-insurer 8.4 0.2 -2.9 ■

Income payment 38.8 4.9 -5.0 ▼Lump sums (incl common law) 28.9 -2.5 7.3 ▲Medical and hospital 13.6 -0.3 0.4 ■Allied health and vocational rehabilitation 8.1 -5.6 -2.5 ■Legal and other services 10.6 -4.9 2.2 ■





Proportion of payments in the March (Q3) 2014/15 quarter


% change

from previous

quarter

% change from same

quarter last year

Overall, claim payments increased by 5.6%.

Income payments (the largest payment group) and allied health and vocational rehabilitation payments remained stable

over the past year. Medical and hopsital, lump sums and legal and other services payments increased by 6%, 13.3% and

7.9% respectively over the year.

The proportion of lump sum payments had the highest increase (7.3%) since last year, whilst income payment income

payments decreased by 5%. All other proportion of payments remained stable for the year.

Approved insurer92%

Self-insurer8%




Claim payments

Summary:

2.2.1: Total claim payments by transaction quarter

2.2.2: Claim payments direct to worker by transaction quarter

2.2.3: Claim payments for treatment services and legal & other services by transaction quarter

Claim payments increased for both approved insurers (15.8%) and self-insurers (5.4%) since the June (Q4) 2010/11

quarter (Indicator 2.2.1).

Indicator 2.2.2 shows that both income replacement and lump sum payments have increased over the four year period

(June (Q4) 2010/11 to March (Q3) 2014/15).

In relation to service payments, all payment types increased over the reporting period.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Income Payments 78.2 70.9 68.3 79.2 75.8 73.0 79.1 84.3 88.5 83.4 84.9 90.8 97.2 92.2 86.1 91.1

Lump sum (incl Common law) 55.3 61.3 50.8 55.4 54.4 58.5 54.1 55.4 54.7 65.4 56.1 59.8 78.5 66.5 69.0 67.8

0

20

40

60

80

100

$m

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Medical & hospital 29.7 30.0 31.8 30.6 31.8 31.9 29.6 28.6 31.7 33.6 30.2 30.0 34.6 35.8 31.8 32.0

Allied health & Voc Rehab 18.6 18.4 19.2 18.0 19.1 19.7 18.5 18.5 20.7 22.4 20.6 18.5 20.7 20.5 19.9 19.0


0

10

20

30

40

$m

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 18.7 18.2 17.0 16.6 18.2 16.5 17.3 17.0 19.7 17.4 18.0 19.2 19.0 20.4 19.5 19.7

50

100

150

200

250

$m




Claim payments

Summary:

2.2.4: Proportion of claim payments by transaction quarter

2.2.5: Proportion of claim payments direct to worker by transaction quarter

2.2.6: Proportion of claim payments for treatment services and legal & other services by transaction quarter

The proportion of claim payments has been stable over time for both approved insurers and self-insurers (Indicator 2.2.4).

Proportion of claim payments direct to worker (income payments) and lump sums remained steady over the reference

period (Indicator 2.2.5).

Proportion of claim payments for treatment services and legal & other services also remained steady over the reference

period (Indicator 2.2.6).

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 9.1 9.0 8.8 8.1 8.9 8.0 8.5 8.2 9.0 7.6 8.4 8.6 7.4 8.4 8.4 8.4

0

20

40

60

80

100

%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Income Payments 38.3 34.9 35.5 38.8 37.1 35.4 39.0 40.7 40.4 36.3 39.5 40.9 38.0 38.0 37.0 38.8

Lump sum (incl Common law) 27.1 30.2 26.4 27.1 26.6 28.4 26.6 26.8 25.0 28.4 26.1 26.9 30.6 27.4 29.6 28.9

0

10

20

30

40

50

%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Medical & hospital 14.5 14.8 16.6 15.0 15.6 15.5 14.5 13.8 14.5 14.6 14.0 13.5 13.5 14.8 13.7 13.6

Allied health & Voc Rehab 9.1 9.0 10.0 8.8 9.3 9.5 9.1 8.9 9.4 9.7 9.5 8.3 8.0 8.4 8.5 8.0


0

5

10

15

20

25

%




Estimated costs

2.3.0 Estimated costs*Mar (Q3)

2013/14

Total estimated claim costs ($m) (pg 23)

Approved insurer 202.3 -6.3 -0.7 ■Self-insurer 17.3 10.4 -6.4 ▼

Average estimated claim costs ($) (pg 23)

Approved insurer 25,610 0.3 4.8 ■Self-insurer 17,199 3.7 2.5 ■

Average estimated claim costs - excl common law ($) (pg 24)

Approved insurer 23,904 3.6 13.5 ▲Self-insurer 16,298 1.5 0.5 ■





Proportion of total estimated claim costs in the March (Q3) 2013/14 quarter



% change from

previous quarter

% change from

previous year

Estimated claim costs are reported up to the March (Q3) 2013/14 quarter only. This is because estimated costs data is

subject to significant development over time and information for the most recent year is still preliminary.

For approved insurers, the average and total estimated claim costs remained stable during the reference period.

Estimated costs for self-insurers decreased (6.4%) whilst the average estimated claim costs excluding common law

increased (13.5%).

Approved insurer92%

Self-insurer8%




Estimated costs

Summary:

2.3.1: Total estimated claim costs by insurer received quarter

2.3.2: Outstanding estimated claim costs by insurer received quarter

2.3.3: Average estimated claim costs by insurer received quarter

Long term trends show that total estimated claim costs (Indicator 2.3.1) are increasing over time for approved insurers but

remained stable for self-insurers.

Average estimated claim costs for both insurers have increased over the four year period.

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3


Self insurer 18.5 15.9 15.3 13.4 16.3 16.6 14.7 16.5 18.5 14.7 17.3 18.5 17.5 18.1 15.7 17.3

0

50

100

150

200

250

$m

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3


Self insurer 0.3 0.1 0.3 0.4 0.8 1.2 0.6 1.0 0.8 1.1 2.4 2.7 2.3 2.9 3.3 4.3

0

50

100

150

200$m

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3


Self insurer 16,387 14,572 13,377 12,029 14,410 14,718 14,047 14,326 17,355 15,026 17,508 16,777 17,217 17,665 16,585 17,199

0

5,000

10,000

15,000

20,000

25,000

30,000

$




Estimated costs

Summary:

2.3.4: Average estimated claim costs (derived) by insurer received quarter - excluding common law

2.3.5: Average estimated common law claim costs (derived) by insurer received quarter

Indicator 2.3.4 shows that average estimated claim costs, without the influence of common law, have been increasing over

time for both insurer types.

As shown in Indicator 2.3.5, average estimated common law claim costs continue to increase for approved insurers over

the long term. For self-insurers, due to the small number of claims, the average estimated common law claim costs is

subject to fluctuation.

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3


Self insurer 173,286 109,107 130,428 75,260 77,398 108,215 79,256 113,974 94,173 117,254 114,271 50,950 49,588 40,855 100,181 922,539

0

200,000

400,000

600,000

800,000

1,000,000

$

2009/10Q4

2010/11Q1

2010/11Q2

2010/11Q3

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3


Self insurer 11,506 10,873 9,140 9,424 12,214 11,642 11,856 11,295 14,829 12,352 15,407 16,210 16,632 17,597 16,050 16,298

0

5,000

10,000

15,000

20,000

25,000$




Estimated costs

2.3.6 Current claim costs for open claims (excl common law) by insurer received year - Approved insurer

Insurer received

year Open claims Total estimated $ Actual paid $

Outstanding

estimated $

% outstanding

estimate for all

open claims

All Earlier Years 106 15,640,835 11,248,880 4,391,955 28.1

2005/06 20 2,195,061 1,330,822 864,239 39.4

2006/07 37 5,637,079 4,100,805 1,536,274 27.3

2007/08 59 8,390,469 5,847,319 2,543,149 30.3

2008/09 85 14,312,105 9,659,044 4,653,061 32.5

2009/10 137 22,019,456 15,091,544 6,927,912 31.5

2010/11 212 30,374,198 22,290,009 8,084,189 26.6

2011/12 557 84,826,112 56,503,858 28,322,254 33.4

2012/13 1,334 198,614,030 123,338,608 75,275,422 37.9

2013/14 3,832 445,156,720 235,431,107 209,725,613 47.1

Total 6,379 827,166,065 484,841,996 342,324,068 41.4

2.3.7 Current claim costs for open common law claims by insurer received year - Approved insurer

Insurer received


Oustanding

estimated $

% outstanding

estimate for all

open claims

All Earlier Years <5 2,347,143 1,478,022 869,120 37.0

2005/06 <5 1,278,336 60,636 1,217,700 95.3

2006/07 0 - - - n/a

2007/08 <5 709,543 663,815 45,728 6.4

2008/09 <5 2,034,730 1,558,894 475,836 23.4

2009/10 9 6,238,930 3,544,079 2,694,852 43.2

2010/11 35 28,965,849 10,981,593 17,984,256 62.1

2011/12 75 48,109,019 20,696,652 27,412,368 57.0

2012/13 131 74,967,551 29,695,655 45,271,895 60.4

2013/14 159 76,252,746 23,178,446 53,074,299 69.6

Total 419 240,903,847 91,857,792 149,046,055 61.9

This section details actual and outstanding costs for all unfinalised claims up until 30 June 2014 for approved insurers.

Proportion of total estimated claim costs for all open claims for approved insurers within the WA workers'

compensation scheme to 30 June 2014

Non-common law, 77% ($827m)

Common law, 23% ($241m)




Estimated costs

2.3.8 Current claim costs for open claims (excl common law) by insurer received year - Self-insurer

Insurer received


Oustanding

estimated $

% outstanding

estimate for all

open claims

All Earlier Years 8 807,184 570,776 236,409 29.3

2005/06 5 244,824 115,647 129,177 52.8

2006/07 7 983,237 480,575 502,662 51.1

2007/08 6 433,959 266,203 167,756 38.7

2008/09 8 1,822,763 1,364,301 458,462 25.2

2009/10 17 2,603,153 1,990,535 612,618 23.5

2010/11 25 3,891,294 2,270,225 1,621,069 41.7

2011/12 46 7,448,582 4,907,930 2,540,652 34.1

2012/13 125 19,510,971 12,302,348 7,208,623 36.9

2013/14 330 30,118,319 17,134,039 12,984,280 43.1

Total 577 67,864,286 41,402,578 26,461,708 39.0

2.3.9 Current claim costs for open common law claims by insurer received year - Self-insurer

Insurer received


Oustanding

estimated $

% outstanding

estimate for all

open claims

All Earlier Years <5 84,850 34,850 50,000 58.9

2005/06 0 - - - n/a

2006/07 0 - - - n/a

2007/08 0 - - - n/a

2008/09 0 - - - n/a

2009/10 0 - - - n/a

2010/11 0 - - - n/a

2011/12 <5 1,497,263 448,584 1,048,679 70.0

2012/13 <5 2,304,998 1,023,349 1,281,649 55.6

2013/14 <5 1,606,133 625,669 980,465 61.0

Total 11 5,493,245 2,132,452 3,360,793 61.2

This section details actual, estimated and outstanding costs for all unfinalised claims up to 30 June 2014 for self-insurers.

Proportion of total estimated claim costs for all open claims for self-insurers within the WA workers' compensation

scheme to 30 June 2014

Non-common law, 93% ($68m)

Common law, 7% ($5m)




Claim management

2.4.0 Claim management

This quarter

Claim duration - initial finalisation (months) (pg 28)


Approved insurer 17 13.4 9.9 ▲Self-insurer 16 6.9 -12.9 ▼

Approved insurer 56 15.8 11.5 ▲Self-insurer 26 -60.8 -15.6 ▼

Insurer lodgement period - income claims (days) (pg 29)

Approved insurer 6 20.6 9.6 ▲

Approved insurer 75.8 -2.0 0.0 ■

Approved insurer 88.0 1.5 -0.5 ■Self-insurer 86.0 7.6 9.8 ▲







Employer lodgement period* - injury income

claims (days) (pg 28)

The average time taken to finalise a claim (claim duration) for approved insurers was 8 months and 6.4 months for self-

insurers.

The time taken for a worker to lodge an injury income claim with an employer increased by 9.9% for approved insurers to

17 days, for self-insurers this decreased by 12.9% to 16 days.

The proportion of income claims with an initial liability decision made within the required legislative timeframe has remained

stable for approved insurers but improved by 9.8% for self-insurers.

Employer lodgement period* - disease income

claims (days) (pg 29)

% change from

previous quarter

% change from same

quarter last year

Proportion (%) of income claims with insurer

lodgement periods within five days (pg. 29)

Proportion (%) of income claims with initial liability

decision period within the legislative time

(Insurers: 14 days, self-insurers: 17 days) (pg 30)




Claim management

Summary:

2.4.1: Average claim duration by initial finalisation quarter

2.4.2: Average employer lodgement period for injury income claims by insurer received quarter

The long term trend shows that the average claim duration for approved insurers has slightly increased from June (Q4)

2010/11. For self-insurers average claim duration trends show a greater level of fluctuation over time (Indicator 2.4.1).

Despite variations across quarters, the number of days between the occurrence of an injury and lodgement of a workers'

compensation claim with an employer (employer lodgement period) has improved over time for approved insurers (Indicator

2.4.2).

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

Approved insurer 17 16 16 18 17 17 17 18 18 18 16 16 16 17 15 17

Self insurer 17 15 15 18 22 13 19 26 18 23 17 19 20 23 15 16

0

5

10

15

20

25

30

Days

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 7.7 7.2 7.7 7.1 6.9 7.0 7.8 8.0 6.5 7.0 8.3 7.5 7.5 6.7 7.2 6.4

0.0

2.0

4.0

6.0

8.0

10.0

Months




Claim management

Summary:

2.4.4: Average insurer lodgement period for income claims by insurer received quarter

2.4.5: Proportion of insurer lodgement period within the legislated time of five working days by insurer received

quarter - income claims

2.4.3: Average employer lodgement period for disease income claims by insurer received quarter

The average number of days between diagnosis of a disease and lodgement of a worker's compensation claim with an

employer (employer lodgement period) increased for claims managed by approved insurers. For self-insurers there is

greater fluctuation. The small number of disease claims within the scheme can result in wide variations over time (Indicator

2.4.3).

As shown in Indicator 2.4.4, employers' timely lodgement of workers' compensation claims (with approved insurers)

remained stable over the past four years. From 1 October 2011, the timeframe for lodgement of claims was extended from

three to five working days as part of legislative changes to the Workers' Compensation and Injury Management Act 1981. In

the most recent quarter (March (Q3) 2014/15) the average was six days.

Indicator 2.4.5 shows the proportion of income claims lodged with an approved insurer within five working days has

gradually improved over time.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

6 5 5 6 5 5 5 5 6 6 5 5 5 5 5 6

0

2

4

6

8Days

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 63 35 79 55 45 38 89 86 82 105 227 31 101 26 67 26

0

50

100

150

200

250

Days

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

72.1 78.0 76.6 74.8 75.6 77.8 75.5 74.9 72.3 75.7 76.8 75.7 76.6 77.8 77.3 75.8

0

20

40

60

80

100

%




Claim management

Summary:

2.4.6: Proportion of income claims with initial liability decision made within legislative time (14 days for approved

insurers and 17 days for self-insurers) by insurer received quarter


Over the reference period, the proportion of claims where an initial liability decision* was made within the legislated

timeframe improved for both self-insurers and approved insurers (Indicator 2.4.6).

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 77.9 76.7 77.1 76.3 75.1 77.7 76.0 77.6 73.3 82.9 80.7 78.4 85.4 83.5 79.9 86.0

0

20

40

60

80

100

%




Settlements

2.5.0 Memorandum of Agreements* and Section 92(f) deeds*

This quarter

% change from

previous quarter

Number of Memorandum of Agreements* (pg 32)

Approved insurer 924 -6.4 12.3 ▲Self-insurer 45 -13.5 -23.7 ▼

Approved insurer 12.2 -1.0 14.4 ▲Self-insurer 5.2 -1.4 -16.8 ▼

Memorandum of Agreements* payments as a proportion of finalised claim payments (%) (pg 32)

Approved insurer 7.5 -19.5 -39.3 ▼Self-insurer 0.4 1.4 -48.3 ▼

Approved insurer 469 11.4 26.1 ▲Self-insurer 77 8.5 20.3 ▲

Approved insurer 6.2 17.8 28.5 ▲Self-insurer 8.9 23.6 31.3 ▲

Section 92(f) deed* payments as a proportion of finalised claim payments (%) (pg 33)







Section 92(f) deeds* as a proportion of finalised claims (%) (pg 33)

Memorandum of Agreements* as a proportion of finalised claims (%) (pg 32)


Number of Section 92(f) deeds* (pg. 33)

% change from same

quarter last year

The number of claims finalised through settlements (Memorandum of Agreements*) increased by 12.3% for approved

insurers and decreased by 23.7% for self-insurers.

The number of claims finalised through lump sums for damages against employers (Section 92(f) deeds) increased for

both approved insurers and self-insurers. Due to the small number of claims finalised through Section 92(f) deeds,

differences in quarters can vary significantly.

Section 92(f) deed* payments as a proportion of finalised claim payments remained stable for approved insurers but

decreased for self-insurers by 17.8%.

The proportion of Memorandum of Agreements* to finalised claims increased in 14.4% for approved insurers and

decreased by 16.8% for self-insurers.




Settlements

Summary:

2.5.1: Number of Memorandum of Agreements* by recording quarter

2.5.3: Memorandum of Agreement* payments as a proportion of finalised claim payments by recording quarter


2.5.2: Memorandum of Agreements* as a proportion of finalised claims by finalisation quarter

Indicator 2.5.1 shows that the number of claims finalised through Memorandum of Agreements* for this quarter (March

(Q3) 2014/15) decreased since the previous quarter (December (Q2) 2014/15).

The proportion of claims finalised through Memorandum of Agreements* has remained stable over time for approved

insurers and self-insurers. Between June (Q4) 2010/11 and March (Q3) 2014/15, proportions increased by 31.3% for

approved insurers and decreased by 26.6% for self-insurers (Indicator 2.5.2).

Indicator 2.5.3 shows that the proportion of Memorandum of Agreement* payments to finalised claim payments has

decreased for both approved insurers and self-insurers over the reporting period.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 76 82 75 71 74 74 58 58 51 60 90 59 71 73 52 45

0

200

400

600

800

1,000

1,200

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 7.08 6.53 7.35 5.65 6.23 7.53 5.89 5.74 4.19 5.68 9.53 6.25 5.97 7.82 5.27 5.20

0.0

5.0

10.0

15.0%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

2014/15Q4

Approved insurer 14.81 15.64 12.87 13.58 12.97 12.89 12.89 10.90 12.54 12.89 12.58 12.38 12.34 10.95 11.08 9.30 7.49

Self insurer 1.35 1.42 1.17 1.00 0.88 1.03 0.88 0.64 0.58 0.71 1.07 0.84 0.82 0.72 0.47 0.42 0.43

0

5

10

15

20

%




Settlements

Summary:

2.5.4: Number of Section 92(f) deeds* by recording quarter

2.5.6: Section 92(f) deed* payments as a proportion of finalised claim payments by recording quarter


2.5.5: Section 92(f) deeds* as a proportion of finalised claims by finalisation quarter

Over the reference period, both the number and proportion of claims finalised through Section 92(f) deeds increased for

both approved insurers and self-insurers (Indicators 2.5.4 and 2.5.5).

Indicator 2.5.6 shows that the proportion of Section 92(f) payments to finalised claim payments has remained stable for self-

insurers and increased for approved insurers from June (Q4) 2010/11 to March (Q3) 2014/15.

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3

2014/15Q4

Approved insurer 8.27 10.12 9.43 10.48 10.48 10.79 12.90 9.21 9.19 11.38 13.34 13.28 10.54 9.15 11.60 10.13 10.86

Self insurer 1.22 1.40 0.94 1.34 1.10 1.32 1.46 0.88 1.69 1.24 1.68 1.50 1.17 1.08 1.37 1.40 0.96

0

4

8

12

16

%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 4.10 3.82 4.02 3.66 4.04 6.21 6.10 5.54 5.42 7.10 7.73 6.78 5.88 8.14 7.20 8.90

0

2

4

6

8

10%

2010/11Q4

2011/12Q1

2011/12Q2

2011/12Q3

2011/12Q4

2012/13Q1

2012/13Q2

2012/13Q3

2012/13Q4

2013/14Q1

2013/14Q2

2013/14Q3

2013/14Q4

2014/15Q1

2014/15Q2

2014/15Q3


Self insurer 44 48 41 46 48 61 60 56 66 75 73 64 70 76 71 77

0

100

200

300

400

500



Claim numbersThe section provides details of annual and quarterly values for all indicators presented in the report.

3.1.1 Total claim count by insurer received date (number)

Insurer received date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 34,441 35,572 34,551 32,981 7,943 7,967 7,336

Self insurer 4,474 4,396 4,085 3,897 898 931 841

Total 38,915 39,968 38,636 36,878 8,841 8,898 8,177

3.1.2 Proportion (%) of claims


2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 88.5% 89.0% 89.4% 89.4% 89.8% 89.5% 89.7%

Self insurer 11.5% 11.0% 10.6% 10.6% 10.2% 10.5% 10.3%

3.1.3 Total claim count by accident date (number)

Accident date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 4,492 4,391 4,098 3,817 904 866 792

Total 38,684 39,700 38,027 35,754 8,564 8,329 7,746

3.1.4 Active income claims (number)

Transaction date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 3,385 3,528 3,394 3,254 1,801 1,710 1,637

3.2.4 Proportion (%) of total payments - transaction type34,751 36,488 37,173 36,390 19,289 18,518 17,822

This indicator reports the number of claims with at least one claim payment by transaction date.

3.1.5 New/closed claim ratio

2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 1.04 1.04 1.00 0.98 0.96 1.00 0.97

Self insurer 1.04 0.93 0.97 0.94 0.96 0.94 0.97

Total 1.04 1.03 1.00 0.98 0.96 0.99 0.97

This indicator reports the ratio of new claims by insurer received date to number of closed claims by initial finalisation date.

Section 3: Tables



Payments

3.2.1 Total payments ($m)


2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 73.0 70.0 70.5 73.7 20.4 19.5 19.7

Total 769.0 804.3 835.1 923.6 242.6 232.7 234.6

3.2.2 Proportion (%) of total payment


2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 90.5% 91.3% 91.6% 92.0% 91.7% 91.6% 91.6%

Self insurer 9.5% 8.7% 8.4% 8.0% 8.3% 8.4% 8.4%

3.2.3 Total payments ($m) - transaction type


2014/15 Q1 2014/15 Q2 2014/15 Q3

Allied Health and Voc Rehab 70.9 74.8 77.3 82.2 20.5 19.9 19.0

Income Payments 280.1 294.2 324.9 356.4 92.2 86.1 91.1

Lump Sums (incl Common law) 219.3 221.9 222.6 259.8 66.5 69.0 67.8

Medical or Hospital 114.1 124.4 121.9 128.4 35.7 31.7 31.8

Legal Expense Payment 42.7 46.2 44.9 52.2 16.2 15.7 15.1

Miscellaneous Payment 42.0 43.1 43.7 44.9 11.6 10.3 9.8

Total 769.0 804.5 835.3 923.9 242.6 232.7 234.6

These represent the types of payments within the WA workers' compensation scheme - n.b. lump sum refer to redemptions and Schedule 2

payments.

3.2.4 Proportion (%) of total payments - transaction type


2014/15 Q1 2014/15 Q2 2014/15 Q3

Allied Health and Voc Rehab 9.2% 9.3% 9.3% 8.9% 8.5% 8.6% 8.1%

Income Payments 36.4% 36.6% 38.9% 38.6% 38.0% 37.0% 38.8%

Lump Sums (incl Common law) 28.5% 27.6% 26.7% 28.1% 27.4% 29.6% 28.9%

Medical or Hospital 14.8% 15.5% 14.6% 13.9% 14.7% 13.6% 13.6%

Legal Expense Payment 5.6% 5.7% 5.4% 5.7% 6.7% 6.7% 6.4%

Miscellaneous Payment 5.5% 5.4% 5.2% 4.9% 4.8% 4.4% 4.2%

Total 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%

Section 3: Tables



Estimated costs

3.3.1 Total estimated claim costs ($m)


2013/14 Q1 2013/14 Q2 2013/14 Q3


Self insurer 61.4 60.8 66.4 68.0 18.1 15.7 17.3

Total 632.7 744.5 846.1 896.1 242.2 231.7 219.6

3.3.2 Proportion (%) of outstanding estimated claim costs


2013/14 Q1 2013/14 Q2 2013/14 Q3


Self insurer 0.6 1.6 3.6 8.5 2.9 3.3 4.3

Total 10.2 27.7 59.3 129.0 58.5 64.8 71.0

3.3.3 Average estimated claim costs ($)


2013/14 Q1 2013/14 Q2 2013/14 Q3


Self insurer 13,192 13,593 15,096 16,643 17,665 16,585 17,199

Total 16,783 19,133 21,170 23,194 25,128 24,626 24,660

3.3.4 Average estimated claim costs ($) - excluding common law


2013/14 Q1 2013/14 Q2 2013/14 Q3


Self insurer 9,570 10,409 12,376 15,200 17,597 16,050 16,298

Total 13,562 15,785 18,088 20,571 22,313 22,359 23,041

3.3.5 Average estimated claim costs ($) - common law


2013/14 Q1 2013/14 Q2 2013/14 Q3


Self insurer 119,724 97,810 99,039 87,082 40,855 100,181 922,539

Total 144,567 176,013 209,961 275,174 361,553 360,791 323,425

Section 3: Tables



Claim management

3.4.1 Average claim duration - initial finalisation (months)

Initial finalisation date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 6.9 7.2 7.3 7.6 6.7 7.2 6.4

Total 6.9 7.1 7.3 7.6 7.7 7.8 7.8

This indicator reports on the average duration of a claim from insurer received date to initial finalisation date.

3.4.2 Average employer lodgement period - injury income claims (days)


2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 17 17 18 17 17 15 17

Self insurer 16 17 19 20 23 15 16

Total 17 17 18 17 18 15 17

This indicator reports on the average number of days between injury occurrence and claim being lodged with employer.

3.4.3 Average employer lodgement period - disease income claims (days)


2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 52 47 47 56 49 48 56

Self insurer 70 54 73 110 26 67 26

Total 53 47 49 60 47 50 54

This indicator reports on the average number of days between occurrence of a disease and claim being lodged with employer.

3.4.4 Average insurer lodgement period - income claims (days)


2014/15 Q1 2014/15 Q2 2014/15 Q3


This indicator reports on the average number of days between employer receiving claim (with income payments) and lodging with approved insurer.

3.4.5 Proportion (%) of income claims with insurer lodgement period within legislated timeframes


2014/15 Q1 2014/15 Q2 2014/15 Q3


Section 3: Tables

This indicator reports on the proportion of claims with income payments that employers lodged with their approved insurers within the legislated required

period of 5 working days.



Claim management


2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 76.2 76.3 76.1 81.7 83.5 79.9 86.0

Total 84.5 85.3 85.8 86.7 84.2 86.0 87.8

Section 3: Tables

This indicator reports on the proportion of claims with income payments where initial liability decision period was made within 14 days for approved insurers

and 17 days for self-insurers.

3.4.6 Proportion (%) of income claims with initial liability decision made within legislated timeframe



Disputes

3.5.1 Number of new dispute applications^

Accepted date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3

Total 1,706 823 1,612 1,945 569 560 541

3.5.2 Number of dispute applications per 100 active claims (disputation rate)

2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3

Total 2.84 n/a 2.53 3.13 1.96 1.99 1.98

This indicator reports the number of dispute applications per 100 active claims.

Section 3: Tables

^ Please note that dispute data reported between the March (Q3) 2008/09 and September (Q1) 2011/12 quarters relates to disputes lodged in the

WorkCover WA Dispute Resolution Directorate (DRD). The December (Q2) 2011/12 quarter relates to a transition phase between disputes services where

the DRD ceased operation on 30 November 2011 and the WorkCover WA Conciliation and Arbitration Services (CAS) commenced on 1 December 2011.

Dispute data reported from the March (Q3) 2011/12 onwards relates to disputes lodged in the Conciliation Service.



Common law and settlements

3.6.1 Number of Common law 2004 Scheme applications

Application date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3

Total 700 748 865 925 243 228 228

Number of common law applications where the worker has at least an agreed or assessed 15% whole person impairment.

3.6.2 Number of Section 92(f) deeds*

Recorded date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 980 1,224 1,427 1,634 406 421 469

Self insurer 186 183 243 282 76 71 77

Total 1,166 1,407 1,670 1,916 482 492 546

Number of Section 92(f) deeds that records a statutory settlement of a workers' compensation claim.

3.6.3 Number of Memorandum of Agreements*

Recorded date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3

Approved insurer 3,250 3,454 3,627 3,716 1,015 987 924

Self insurer 271 302 241 280 73 52 45

Total 3,521 3,756 3,868 3,996 1,088 1,039 969

Number of agreements that records a statutory settlement of a workers' compensation claim.

3.6.4 Section 92(f) deeds* as a proportion of finalised claims (%)

Recorded date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 4.3 3.9 5.8 6.8 8.1 7.2 8.9

Total 3.1 3.6 4.3 5.1 5.3 5.5 6.5

3.6.5 Memorandum of Agreements* as a proportion of finalised claims (%)

Recorded date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 6.3 6.4 5.7 6.8 7.8 5.3 5.2

Total 9.4 9.7 10.0 10.6 11.9 11.6 11.5


Section 3: Tables



Common law, Section 92(f) deeds and Memorandum of Agreements

3.6.6 Section 92(f) deed* payments as a proportion (%) of finalised claim payments

Recorded date 2010/11 2011/12 2012/13 2013/14

2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 21.9 11.4 17.1 16.1 11.8 17.6 18.4

Total 9.7 11.3 11.8 13.5 10.3 13.0 11.6

3.6.7 Memorandum of Agreement* payments as a proportion (%) of finalised claim payments

Recorded date 2010/11 2010/11 2010/11 2010/11

2014/15 Q1 2014/15 Q2 2014/15 Q3


Self insurer 12.4 10.6 9.9 9.9 7.9 6.0 5.5

Total 13.8 14.8 13.1 13.4 11.7 11.6 9.8


Section 3: Tables



Section 4: Glossary

TERM DEFINITION / EXPLANATION OF TERM

Accident quarter The financial quarter in which the occupational injury/disease occurred or when

symptoms of the occupational illness or disease were first recognised.

Active claim A claim with one or more transaction payments in a financial year/quarter.

Average claim cost An estimate of costs for unfinalised claims, plus the total cost of finalised claims,

divided by the number of claims. Average cost is attributed to the year in which a

claim was lodged.

Claim costs An estimate of costs for unfinalised claims, and the total cost of finalised claims

attributed to the year in which a claim was lodged with an insurer.

Claim duration The number of months between the date the claim was received by the insurer and

the date at which the claim was first finalised.

Claim payments Payments direct to worker:

1. income payments (payments made for absences from work).

2. lump sum payments (including common law):

- redemption payments made under Schedule 1

- specific injury payments made under Schedule 2

- fatal payments including funeral expenses.

- common law and other Acts payments.

Payments for treatment services:

1. medical and hospital payments:

- medical practitioner and specialist payments

- hospital expenses (hospital accommodation and hospital treatment).

2. allied health and vocational rehabilitation payments:

- other treatment and appliance payments

- vocational rehabilitation payments.

Payments for legal and other services:

1. legal expenses

2. approved medical specialist service payment and third party referred report

3. miscellaneous payments.

Closed claims The number of claims closed during a financial year/quarter i.e. a finalisation date is

recorded.

Common law claim An action for common law damages made against an employer or other party in

respect of an injury; if the injury was caused by the negligence of the employer or

other party and the worker has at least an agreed or assessed 15% whole person

impairment.

Common law payment The total economic loss component of a common law settlement or judgement after

deduction of amounts for contingencies and contributory negligence. This includes

any amount for pain and suffering, permanent impairment, loss of superannuation,

legal expenses and future medical costs.



Section 4: Glossary


Common Law 2004 Scheme

Applications

Introduced by the Workers' Compensation Reform Act 2004 . This applies to workers

injured post 14 November 2005. To qualify for common law damages, an individual

must be assessed to have 15% whole-of-person impairment for limited common law

damages or 25% whole-of-person impairment for unlimited common law damages.

Dispute A dispute over a worker's compensation claim by parties involved (e.g. insurer,

employer, worker). A dispute can occur at any stage of a

claim in relation to a number of matters.

Disputation rate The number of dispute applications as a proportion of all active claims for the

reference year. Prior to 2009/10, the disputation rate was calculated slightly

differently, with the number of dispute applications represented as a proportion of all

new claims lodged in a reference year. The change to the current definition and

calculation was made at a national level, across all jurisdictions, to reflect that

dispute applications may occur at different stages during a claim cycle, not

necessarily in the first year.

Employer lodgement period The number of days between occurrence of a work-related injury or diagnosis of a

work-related disease and lodgement of a worker's compensation claim with an

employer.Estimated claim cost The total estimated incurred claim costs, exclusive of development estimate and

incurred but not reported (IBNR) amounts. Estimated costs are not adjusted for

inflation and are attributed to the year in which a claim was lodged with an insurer.

Incidence rate The number of lost-time claims per hundred employees (part-time, full-time, casual,

and seasonal) in Western Australia. Employee numbers are based on the Australian

Bureau of Statistics Labour Force data (catalogue number: 6202.0).

Insurer lodgement period After receiving a worker's compensation claim, an employer (whose worker is

covered by the Workers' Compensation and Injury Management Act 1981 ) is

required to lodge the received claim with their insurer within five working days. See

S.57A (2) Workers' Compensation and Injury Management Act 1981.

Initial liability decision for approved

insurers

After receiving a worker's compensation claim from an employer, an approved

insurer within the WA workers' compensation scheme is required to make an initial

decision as to whether to accept or decline liability for the claim within 14 days. See

S.57A (3) Workers' Compensation and Injury Management Act 1981.

Initial liability decision for self-insurers After receiving a worker's compensation claim, a self-insurer within the WA workers'

compensation scheme is required to make an initial decision as to whether to accept

or decline liability for the claim within 17 days. See S.57B (2) Workers'

Compensation and Injury Management Act 1981.

Insurer received quarter A three month period where new workers' compensation claims were lodged with an

insurer (approved insurer or self-insurer).

Lost time claims Claims for which the injury/disease results in an absence from work of at least one

day or shift.

Long duration claims Workers' compensation claims for which the injury/disease results in an absence

from work of at least 60 days or shifts.

Memorandum of Agreements A legal instrument which, if registered with the Conciliation and Arbitration Services

of WorkCover WA, records a statutory settlement of a worker's compensation claim.

See section 76 of the Workers' Compensation and Injury Management Act 1981 .



Section 4: Glossary


Number of claims Claims lodged during a given period It includes claims where no payment has been

recorded at the date of data extract.

New to closed claims ratio The relationship between the number of new claims lodged and the number of

closed claims for a given quarter.

Outstanding estimated claim costs Amount of liability that is yet to be paid for each incurred claim and as estimated by

insurers.

Payment year or payment period or

payment quarter

The year, period or quarter for when payments were made for workers'

compensation claims.

Payments Also see claim payments. Payments are adjusted for inflation to allow meaningful

comparisons over time.

Pending claims Where a decision to accept or decline liability for a worker's compensation claim is

extended by an insurer until further information is obtained (e.g. medical information

or details about a worker's weekly earnings).

Section 92(f) deeds A lump sum payment for damages against the employer without proceeding to court;

no further claim can be made. See Section 92(f) of the Workers' Compensation and

Injury Management Act 1981 .

Transaction quarter The date of when a payment was processed.



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5 Information concerning the accuracy and appropriate uses of the data or concerning other workers’

compensation data may be obtained by contacting WorkCover WA.

Disclaimer

Due to the dynamic nature of workers’ compensation claims, the interpretation of data contained within this

report (the data) must be undertaken with some caution. Data users are cautioned to consider carefully the

provisional nature of the data before using it for decisions that concern personal or public safety or the conduct

of business that involves substantial monetary or operational consequences.

The accuracy or reliability of the data is not guaranteed or warranted in any way. WorkCover WA has made a

reasonable effort to ensure that the data is up-to-date, accurate, complete, and comprehensive at the time of

disclosure. This data reflects data reported to this agency by insurers for the reporting periods indicated. Data

users are responsible for ensuring by independent verification its accuracy, currency or completeness.

Neither WorkCover WA, or its agencies or representatives, are responsible for data that is misinterpreted or

altered in any way. Derived conclusions and analysis generated from this data are not to be considered

attributable to WorkCover WA.

This data is provided as is and in no event shall WorkCover WA, its agencies or representatives be liable for any

damages, including, without limitation, damages resulting from lost data or lost profits or revenue, the costs of

recovering such data, the costs of substitute data, claims by third parties or for other similar costs, or any

special, incidental, punitive or consequential damages, arising out of the use of the data.


scheme status report - workcover wa · 2018-11-08 · this scheme status report presents the status...

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