AIA sets standard in occupational rehabilitation

AIA Australia has announced it will commission an independent study into the life insurance rehabilitation and return to work process to determine ‘best practice’ principles for the industry. The research aims to deliver better results for super funds, businesses and employees engaging in return to work programs.

This follows an initial paper released by AIA Australia at its Group Insurance Summit in September, which showed that businesses were risking productivity levels by failing to implement appropriate in-house rehabilitation and return to work programs for employees. The paper also showed the positive impact that being back at work can have on an employee’s mental health.

The new study, to be conducted by renowned personal injury management and rehabilitation expert Petrina Casey, will draw on data collected from previous best practice research from around the world, return to work data, rehabilitation practitioner and employer research, as well as qualitative insights from claimants who have experienced the rehabilitation and return to work process.

At the completion of the research, a set of ‘best practice’ principles will be established for returning employees to work. These will then be contrasted against the industry’s current strategies to better align insurer practices with the needs of workers, employers and superannuation funds.

AIA Australia’s general manager life insurance, Damien Mu (pictured), said rehabilitation is a key opportunity for the industry to improve the claims experience for superannuation funds, employers and employees.

“As insurers we aim to protect and support Australians at their most vulnerable moments, and employee rehabilitation is a vital part of that,” Mu said. “This research will help us to confirm our current position in relation to best practice and improve our processes in rehabilitation, but also assist others in group insurance to see where they can improve their own practices.”

A survey conducted by AIA Australia following the Group Insurance Summit in September this year indicated that while 72 per cent of respondents had an occupational rehabilitation (OR) program in place through their insurer, 52 per cent thought employers were unaware of how to implement OR practices. 18 per cent thought the cost of implementing OR was too high.

“We’ve proven that when done correctly, the benefits of employee rehabilitation outweigh the costs for all involved,” Mu said. “The problem is a lack of education or consistent principles on which to measure effectiveness in the industry.  This means there is confusion as to whether occupational rehabilitation can achieve effective outcomes, and what contributes most to these results. This is what we are seeking to clarify through this research.”

Director of Cortex Solutions Petrina Casey, who has over 18 years of experience in the personal injury insurance sector, believes the research is long overdue.

“Until recently, life insurers have been comparing their own offering with that of their competitors to determine best practice for occupational rehabilitation,” he said. “Whether or not this was actually right for rehab recipients or their providers is unclear. With this research we hope to get a better picture of the issue.”

The research is due to be published in the early part of 2014, and is expected to drive an increased focus on improving rehabilitation and return to work practices for AIA Australia, which already operates a comprehensive program focusing on timely engagement, tailored solutions and evidence informed results.

“We’ve made good progress in this journey so far and we continue to seek feedback on ways we can help our partners succeed,” Mu said. “This research will ensure that our rehabilitation and return to work offering continues to strive for excellence and is framed by the principles of best practice.”