Hazel Armstrong, Hazel Armstrong Law, Wellington, New Zealand
Overview/Conclusion: Occupational disease claims raise distinct challenges for the experience rating model, demonstrating that it is not wholly effective in preventing occupational diseases or accurately attributing the claims costs of compensation or rehabilitation to employers. Experience rating is also incapable of effectively providing incentives to employers to manage most occupational disease claims, as there is likely to be a mismatch between the employer where exposure occurred and the employer where the disease manifests itself. In fact, there may be a perverse incentive on employers, where employers may not be concerned about exposing workers to potential diseases as the employer is unlikely to be accountable for them.
Authors: Hazel Armstrong and Kristen Bunn
Reference: Experience rating and occupational disease: a New Zealand case study. Policy and Practice in Health and Safety, 2012; 10(1):63-75