The Impact of Insurance on the Reduction or Increasing of Occupational Accidents: A Review

Abstract

Despite the safety management and safety measures, occupational accidents in the workplace are inevitable, and occupational deaths and injuries occur every year around the world. One of the management approaches to control of risk is transfer risk. In this approach, the total or part of losses caused by accident compensated by the third party (insurance markets). This approach is used when the probability of occurrence of the accident is low but its impact and consequences are severe. In this article, we reviewed the studies related to insurance and occupational accidents. The aim was to find a link between insurance and occupational accidents and to answer the question that whether insurance has an effect on the reduction or increase of accidents or not. According to a study conducted on various papers from various databases, it has been shown that insurance, in addition to compensation, can improves safety and reduce accidents. Also, despite the fact that insurance may have other negative economic effects in organizations, it can reduce both the risk of occupational accidents and financial risks for insurers through an incentive and economic approach.

Keywords

• Insurance
• Occupational Accidents
• Risk Transfer
• Workers' Compensation Insurance.