A NSW case study

Andrew Houltram presented the following paper at the 12th Institute of Actuaries of Australia Accident Compensation Seminar in November 2009: Workers' compensation payment-type analysis for self-insurers: A NSW case study.

The paper challenges the conventional wisdom that experience for self-insurers is too sparse to permit analysis that subdivides the liability into its payment-type components, and presents evidence that the reliability of liability projections by payment type will be much more reliable than those drawn from aggregate analysis. Additionally, the paper makes the case that payment-type valuations provide results in operationally meaningful terms, making the advice more business-relevant; and opening the door to identifying specific areas where corrective action has the potential to prevent deterioration in outcomes.