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

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Presentation on theme: "Economic incentives in OSH Key results of the case study report Workshop 4-5 Feb 2009, Bilbao Marc De Greef."— Presentation transcript:

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

2 Economic incentives in OSH : Case study report2 Content 1. Introduction 2. Case studies 3. Conclusions

3 1 Introduction

4 Economic incentives in OSH : Case study report4 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

5 Economic incentives in OSH : Case study report5 Overview of the incentives (1)

6 Economic incentives in OSH : Case study report6 Overview of the incentives (2)

7 2 Case studies

8 Economic incentives in OSH : Case study report8 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

9 Economic incentives in OSH : Case study report9 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

10 Economic incentives in OSH : Case study report10 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

11 Economic incentives in OSH : Case study report11 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

12 Economic incentives in OSH : Case study report12 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

13 Economic incentives in OSH : Case study report13 Business financing - Italy Financial funding for SMEs in the craft and agriculture sector Initiated by INAIL (Instituto Nazionale per lAssucurazione 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

14 Economic incentives in OSH : Case study report14 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

15 Economic incentives in OSH : Case study report15 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 per project)

16 Economic incentives in OSH : Case study report16 Capital account funding Financial support, additional to interest funding, in case of excellence INAIL covers max. of 30% of interest funding (max. of ) 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.

17 Economic incentives in OSH : Case study report17 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.

18 Economic incentives in OSH : Case study report18 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

19 Economic incentives in OSH : Case study report19 Results and evaluation (2) 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

20 Economic incentives in OSH : Case study report20 Results and evaluation (3) Training and information Applicants: employers associations, consortia of companies, bilateral organisms Sectors: espec. services, construction, agriculture, metal working Training & infoTraining tools Resources66,106,48311,362,051 Funding applied for113,040,64295,414,117 Projects submitted6, Eligible and financed projects4,789118

21 Economic incentives in OSH : Case study report21 Results and evaluation (4) Comparison of group with and without funding Injury trends from Injury frequency index shows stronger decrease in group benefiting from funding than the control group

22 3 Conclusions

23 Economic incentives in OSH : Case study report23 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

24 Economic incentives in OSH : Case study report24 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.

25 Thank you ! Marc De Greef


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