Making insurance costs count

Chris Dyer examines new research into insurance cover for injury and ill health that could mark the beginning of a radical reform of the UK system, with all of the costs transferred to employers.

For years the HSE has been trying to persuade employers that the costs of work-related injuries and ill health have a direct effect on the bottom line. In 1993, it published guidance¹ including example case studies showing losses equivalent to 1.4% of operating costs and 37% of annual profits. The HSE has pursued the theme ever since and recently produced a "ready reckoner" to calculate the cost of work-related accidents and ill health - the first action point of the Government's Revitalising health and safety strategy (Employers face major health and safety at work shake-up).