Loading...
Skip to content

2013 Premium Rates

In order to create stable and competitive premium rates for the future and ensure a sustainable workplace safety and insurance system for workers and employers, premium rates will increase by 2.5% for all employer rate groups in 2013. This increased rate is a necessary step to reducing the WSIB’s unfunded liability (UFL), which has grown to $14.2 billion.

This decision by our Board of Directors was made based on sound and detailed actuarial and financial analysis, and will enable us to meet the funding requirements set by the government earlier this year.

The increase is being applied to all rate groups. Our experience rating program remains in place to recognize employers who are performing well and reward them accordingly.

Financial discipline to get the most value out of your premium dollars

Employers can be confident that we are using their premium dollars wisely. We’ve brought increased financial discipline to the way we manage our insurance fund, and our hard work is getting results. Today workers are getting decisions on their claims faster than before, and they are getting back to work faster and safer. In 2011, for the first time in 10 years, we are reporting an operating surplus in terms of revenues compared to expenses, and so far results in 2012 are even more encouraging.

Did you know?

  • 91% of injured workers are getting back to work within a year
  • The WSIB has one of the lowest costs for new claims and administration among all of the provinces
  • The WSIB had its first surplus in a decade in 2011: $352 million

More consistent and rigorous case management and better support for recovery and return to work is resulting in improvements that benefit workers, employers, and the Ontario economy. These results include:

  • 93% of eligibility decisions made within two weeks, compared to 65% in 2008
  • 98% of telephone calls from employers are answered live within one minute, compared to 50% in 2010
  • A significant drop in the average length of time on claim, and the number of workers needing 100% wage loss support

Everyone is contributing to improved results

Workers and employers continue to make their workplace safer and healthier, resulting in fewer Lost Time Injuries (LTIs). At the same time, more consistent and rigorous case management and better support for recovery and return to work have assisted in getting workers back to work earlier and more safely.

These improvements have reduced annual benefit payments by almost $500 million over the past couple of years alone. We are managing well, and we are now in a position to eliminate the UFL.

Addressing the unfunded liability (UFL)

The WSIB is carrying a $14.2 billion debt, or UFL. This is the shortfall between the money the WSIB needs to pay benefits in the future and the money that is actually there in the system. Because of this UFL, workplace insurance premiums in Ontario are among the highest in Canada.

Did you know?

  • 30% of premiums go to paying down the UFL

For various reasons premiums in the past were not sufficient to cover the cost of claims. This has created an unfortunate situation where current employers are faced with paying the costs of the past.

Absent the need to service the UFL, Ontario would have among the lowest premium rates in the country. That is where we want to be.

history of average premium rate

While the premium rate increase for 2013 may add costs today, the retirement of the UFL will result in lower premiums and strengthened competitiveness for Ontario businesses in the longer term.

What can employers do to keep their workplace insurance costs down in 2013?

About 95% of premiums paid by most employers are experience-rated. That means employers who have safe workplaces and effective return-to-work programs can reduce their annual premiums paid.

Employers should also stay focused on preventing injuries and illnesses in the workplace. When incidents do occur, make sure they are reported early, because early intervention can help workers return to work earlier and more safely.

Read our news release.

 

 

eWSIB

I am:

Please note: Our website will be unavailable on Thursday, August 28 from 10 p.m. EDT until Friday, August 29 at 12 a.m. EDT due to system maintenance. We apologize for the inconvenience.