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Economic incentives in OSHKey results of the case study reportWorkshop 4-5 Feb 2009, Bilbao
Marc De Greef
www.prevent.be Economic incentives in OSH: Case study report 2
Content
1. Introduction
2. Case studies
3. Conclusions
1Introduction
www.prevent.be Economic incentives in OSH: Case study report 4
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
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Overview of the incentives (1)
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Overview of the incentives (2)
2 Case studies
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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
www.prevent.be Economic incentives in OSH: Case study report 9
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
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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
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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
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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
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Business financing - Italy Financial funding for SMEs in the craft and agriculture
sector Initiated by INAIL (Instituto Nazionale per
l’Assucurazione 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
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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
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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. 155.000 € per project)
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Capital account funding Financial support, additional to interest funding,
in case of excellence INAIL covers max. of 30% of interest funding
(max. of 46.000 €) 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.
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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.
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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
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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
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Results and evaluation (3)
Training and information
Applicants: employers associations, consortia of companies, bilateral organisms
Sectors: espec. services, construction, agriculture, metal working
Training & info Training tools
Resources 66,106,483 11,362,051
Funding applied for 113,040,642 95,414,117
Projects submitted 6,340 829
Eligible and financed projects 4,789 118
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Results and evaluation (4)
Comparison of group with and without funding Injury trends from 2001-2005 Injury frequency index shows stronger decrease in
group benefiting from funding than the control group
3 Conclusions
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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
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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.
Thank you !
Marc De Greef
marc.degreef@prevent.be
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