Managing disability risk better for higher returns

Once an individual has been absent from their job for more than six months there is less than a one in five chance that this person will return to work.

Carol Smit of Momentum Collective Benefits believes that this statistic can be changed and that there is a far better solution for both employees and employers alike. “If people who are at risk of becoming permanently disabled are left without early intervention they become victims of an “illness” mindset. These people give up and accept the idea of being “disabled” and unable to work. Yet our experience has shown that with early intervention this mindset can quickly be arrested and turned around, often with miraculous results.

Carol talks of Momentum Collective Benefit’s experience with clients where early intervention, absence management and rehabilitation are part of their income replacement solution. “Our statistics show that where there is early intervention and rehabilitation, potential disability cases are more likely to return to work by 40%. If weconsider people currently on disability,intervention and rehabilitationlead toa 60%increase in the numberof disability claims terminated as people return to work.

Not only is this return-to-work achievement good for business as companies retain valuable and well-trained resources, the scheme too benefits through lower rates and incentive bonuses. We have calculated that for every R1 we spend on rehabilitation the scheme saves over R100. A great return on investment. Add to this the fact that companies keep the value of key resources too. ”

In South Africa where skilled resources come at a premium, cost effective risk management solutions and the preservation of a skilled and experienced resource pool is fundamental to good business and industry competitiveness. Meaningful health and risk data that help reduce the risk of injury, illness and disability in the workplace and quick intervention and rehabilitation where potential and real disability occurs, is the new workplace challenge.

“There are significant advantages to a proactive approach for employers, employees and insurers, “ says Carol. “We have found that looking for potential risk in the workplace right from the start and putting preventative measures in place immediately reduces workplace risk. Where employers work with us in reducing risk, so we reduce their rates.

“Getting to the problem sooner is so important that we incentivise employers financially to inform us early.

“And we motivate employees with financial incentive bonuses to embrace their rehabilitation process and return to work. Earning 100% of your salary working is a lot better emotionally and financially than earning 75% of your salary as an income benefit.”

In the traditional disability insurance model, insurers have practiced a reactive approach, paying disability claims as they arise. In retrospect, this now appears to be a less productive and more expensive way in the long term to respond to workplace risk.

“We have found that such is the impact of key interventions on the risk costs that we can offer proactive disability management services free of charge to our clients on any of our income disability benefit plans. These services would include workplace risk assessments, absence monitoring and rehabilitation. The savings from a proactive approach not only benefit the insurer through lower claims, but they also benefit the scheme through lower rates and healthier reserves and the employer through increased productivity and lower absence costs. While it is an intelligent solution to managing risk more cost effectively in the workplace it is also a more human approach. “