Employees’ compensation insurance premiums paid by employers in Hong Kong have soared dramatically in recent years to become one of the highest insurance costs for most businesses.
Many Hong Kong companies have seen employees’ compensation insurance premiums escalate by at least 20% to 30% over the past two to three years. And rates for the mandatory insurance are expected to continue to rise, driven by increased frequency and severity of claims over the last five years and reductions in available capacity.
To help control these rising costs, Marsh has found that a multi-disciplinary approach is most effective. Such a strategy should focus on four key areas:
- Safety management.
- Injury management.
- Claim management.
- Insurance and insurer management.
The total cost to employers of the underlying risk of employee injury may often be several times the cost of their employees’ compensation premium.