Premiums could soar if HSE cuts inspections, says broker
INSURANCE premiums could reach a 10-year high in reaction to Health and Safety Executive (HSE) plans to cut unannounced workplace inspections, according to Manchester broker CBG Group.
According to a letter leaked to the BBC, the HSE is proposing to reduce the inspections by a third. The cuts could mean the withdrawal of surprise inspections from entire sectors of industry.
Insurance experts are now predicting that a dip in enforcements and visits could see premiums starting to return to levels last seen a decade ago.
Dave Mackie, group business development director at CBG Group, said: “Undoubtedly, there will be a knee-jerk reaction to the HSE’s expected cuts. We could see a rise in claims costs and an increase in the frequency, which insurers will have to react to.
“Premiums have gradually reduced over the last few years. However, it’s extremely possible that any reduction in HSE inspections could see levels revert back to those experienced in 2000-01. It’s essential that companies plan carefully for these changes and review all policies that have a liability bias.”
No final decision has been made by the HSE, but the organisation is facing a 35% cut in its Government grant, leading to concerns over future workplace safety.
During 2009-10 there were 3,301 serious workplace injuries in the North West compared to 3,432 in 2008-9. Of these 716 were in Lancashire, down 4.6%; 1,252 in Greater Manchester, down 1.6%; 576 in Merseyside, down 2%; 489 in Cheshire, down 8.5%; and 268 in Cumbria, down 6%.
Cumbria had the worst record on fatalities with six workplace deaths, up from one last time. This was followed by Manchester where four people died, down from nine in 2008-9. In both Lancashire and Cheshire three people were killed at work, down from five in both counties last time. Merseyside saw three fatalities, the same as the previous year.
