Italy’s insurance premium discount for virtuous companies

Reinforcing the mechanism of incentives

Italy is introducing premium discounts on national insurance for workplace accidents for "virtuous companies" that invest in safety measures exceeding the 2008 Safety Consolidation Act. This initiative aims to reduce business risks and encourage high safety standards through potential financial incentives.

You heard it here first

Health & safety professionals have been saying for many years that “good safety is good business” – and Arinite is no exception. Our May 2022 Blog reproduced the famous “iceberg” model attempting to show the hidden costs of accidents, or rather how the costs of accidents (damage, legal costs, clearing up, production delays, investigation time, etc.) can be 8 to 36 times greater than any insurance payouts claimed.

Italy nailed it

Different countries have different ways of providing restitution for workers injured by their work. INAIL (Istituto Nazionale per l'Assicurazione contro gli Infortuni sul Lavoro) is Italy’s public authority managing mandatory insurance against workplace accidents and occupational diseases. Part of the Ministry of Labour, and funded by employer contributions, it protects workers via compensation, healthcare, and rehabilitation, while enforcing safety standards and funding workplace improvements.

Italy's main workplace health and safety legislation is Legislative Decree No. 81 of April 9, 2008, (Testo Unico sulla Salute e Sicurezza sul Lavoro), often referred to as the 2008 Safety Consolidation Act.

In a comparison of workplace accidents between Italy, Poland, Germany, Netherlands and Finland, INAIL noted that workplace accidents and illnesses in Italy impose a significantly greater economic burden, estimated to be over €100 billion per year, which represents approximately 6.3% to 6.7% of the country's GDP. The average cost per individual workplace accident was estimated to be around €54,964 to €64,000 – or €4,667 per person in 2021.

How the discount works

Last year, INAIL ringfenced a fund of €600m from its operating surpluses, to which it is inviting proposals from companies who may receive a (non-repayable) contribution of up to €130,000 for investing in health & safety. These investments need to go beyond minimum legislative compliance with the 2008 Safety Consolidation Act.

It’s not the first time that INAIL has launched this kind of initiative. The official press release stated that it is, however, the largest amount allocated in 15 iterations of the initiative, through which the Institute has allocated over €4 billion in non-repayable grants to the Italian manufacturing sector since 2010. (Other sectors, e.g. agriculture are also eligible for grants).

Not in Italy?

Your company may not, of course, have any operating divisions in Italy in a position to take advantage of INAIL’s grants. We understand that different countries operate different employer insurance schemes. Some, like the UK, are funded by employer payments into quoted insurance company schemes.

There can be, however, something of a “no claims bonus”. I once worked for a large organisation that enjoyed good health & safety standards – so much so that our insurers informed me they received so few compensation claims from our employees that they could remember each one by name, and didn’t need to look up files when I telephoned to discuss cases.

The phrase ‘good safety is good business’ really can bring financial benefits to organisations and by working hard to improve your H&S managements systems, will in time, bring the benefits of reduced insurance premiums!

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