Companies are always looking for ways to control costs and this year the focus is on Controlling Workers' Compensation costs.
In an article we posted in December of 2011 we noticed a new trend to do so by laying off workers to cut workers' comp costs . Cutting staff lessens the number of employees at risk and the amount of the premiums companies pay to insure them. Now cutting workers' comp is not an after thought but it has become a strategic weapon in the race to keep companies competitive.
In an interesting article in Insurance Journal posted yesterday, surveys of employers indicate this will be the trend in 2012.
Here is an excerpt from that article;
Controlling workers’ compensation costs is a top priority for employers.
During the next 12 months, employers say cost containment is their number one workers’ compensation insurance concern, a new study shows. Some 59 percent of employers say they are very or somewhat concerned about cost containment in 2012. Employers also expressed concerns about increasing exposures, renewals and rising fraud behaviors.
Almost half of all respondents to the survey – 48 percent – reported a workers’ compensation premium increase in the past year, while 28 percent reported a decrease and 24 percent said their premiums stayed the same.
While The SRS Group, LLC has long understood the benefit of cost containment of workers' comp as a key component of managing both risk and claims, in 2012 it has become recognized as a necessity.
To read the complete article in Insurance Journal click here
