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Explore best practices from new manufacturing and automotive study

Our latest study highlights 12 key elements critical to reducing your total cost of risk through safety management improvements.

10/03/2022

Using safety performance to reduce your total cost of risk

With companies increasingly focused on optimizing costs and performance, our latest study of more than 700 of your manufacturing and automotive industry peers highlights 12 key elements critical to reducing your total cost of risk through safety management improvements.

 

12 Key study insights

Workers’ compensation costs are the tip of the iceberg.

$15,878

Average cost per claim

$50,948

Average cost per lost time claim

28%

Percent of lost time claims

12.1%

Percent of litigated claims

Strains are the leading cause of loss, representing 34.4% of total claims and 41.2% of lost time claims.

While direct workers’ compensation costs are significant, indirect costs can be many multiples of them and permeate your entire income statement.

Benchmarking metrics powered by Marsh Blue[i] Claims Analytics[1]

Spotlight on ergonomics

A low priority?

Only 6.1% of respondents selected ergonomics as a top 1, 2, or 3 priority. This is alarming, as even without picking up a claims run, most safety and risk professionals know that ergonomic-related claims account for a high percentage of manufacturers’ injury claim costs. Now safety and risk professionals also must contend with more remote working situations, and many do not have an aligned ergonomics program in place.

What we see

Ergonomics programs, if implemented the right way, naturally add value and improve performance. Not only do they reduce musculoskeletal disorders, but they can also improve productivity, enhance quality, reduce employee turnover, and drive operational efficiency.

Best practices of leading companies

Responsibility lies with a program sponsor within senior level management.

  • Common metrics and key performance indicators are established.
  • Ergonomics is managed as a continuous improvement process, leverages technology, and is treated as an engineering discipline.

As the world navigates through economic challenges, the way forward is to focus on your people, who will in turn take care of your business. Finding qualified employees is hard. Keeping them healthy and productive with rigorous job demands, while at the same time achieving your total cost of risk objectives and lowering your indirect costs, can be daunting at times.

 

[1] Our Blue[i] Claims Analytics helps clients benchmark past performance and quantify future savings potential. The easy-to-use platform aggregates claims data from all of a client's carriers and TPAs, providing a dashboard that visualizes the largest opportunities for cost savings in real time. You can then work with our specialists to develop and implement custom claims optimization and cost reduction action plans.

Take the next step toward building a culture of safety

Take the Safety Performance survey

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