The Client and Its Challenge
This international airplane engine manufacturer faced high workers’ compensation costs as a result of long claims durations and high average claims costs. The client wanted to identify key loss drivers and develop targeted risk mitigation programs.

The Risk Consulting Solution
Marsh consultants used a Workers’ Compensation Gap Analysis to review and compare the company’s existing workers’ compensation processes and procedures against recognized best practices. The first step involved a thorough review of the company’s formal health and safety programs, claims reporting process, post-injury management procedure, and written method for selecting and managing medical providers. Next, Marsh consultants conducted a site visit during which they interviewed employees with a range of job functions to find out how well workers’ compensation procedures were understood and implemented at the facility.

As a result of the Workers’ Compensation Gap Analysis, Marsh consultants found that musculoskeletal disorders accounted for 60 percent of the client’s loss costs at the manufacturing facility. Therefore, ergonomics was determined to be an area in which the company could expect a high return on its investment in prevention and safety programs.

In the next phase, Marsh consultants used Ergonomic Exposure Mapping to identify and prioritize risk factors associated with individual jobs. This allowed the company to focus more closely on those ergonomic improvements that would offer the greatest pre-loss cost reduction. Finally, based on the results, Marsh developed an action plan to address significant gaps identified in the client’s ergonomic processes.

Consultants also helped the company develop and train an in-house ergonomics team to be responsible for driving further ergonomic improvements. Team education included training on exposure mapping, in-depth ergonomic job analysis, ergonomic solutions, and team-based problem solving.

Results
Compared to the same period last year, the client reduced its loss costs by 86 percent and saved almost $200,000 in the first six months of the program. The client also significantly improved the work environment and reduced ergonomic risk factors for employees. Additionally, for the first time in its history, the facility received a score of three out of four on its annual corporate environmental health and safety audit—a significant achievement.