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

Despite the safety management and safety measures, occupational accidents in workplaces annually cause occupational deaths and injuries worldwide. The risk transfer is one of the risk control approaches management. In this approach, the total or a part of the accident’s losses compensated by a third party (insurance industry). This approach applicable whenever the probability of an accident’s occurrence is low but it has severe impact and consequences. In the current study, we reviewed the studies related to insurance and occupational accidents. This study was aimed 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.