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Rate Framework: Our model

The new premium rate setting model will use a 3 step approach to determine your premium rates:

Step 1: Classification

The WSIB will be moving from our current classification structure to the NAICS-based classification structure. We’re simplifying how businesses will be classified by adopting the North American Industry Classification Structure system, or NAICS. NAICS is already used by Statistics Canada, the Canada Revenue Agency and is a North American standard. And it will help us simplify and streamline our classifications, going from 155 rate groups down to just 34 classes/subclasses. That will make it easier to understand why your business and other businesses are classified the way they are.

Step 2: Class Level Rate Setting

In the rate framework, you will be assigned to a Predominant Class. This is generally based on the Class that represents your largest percentage of insurable earnings. The class projected premium rate represents the collective experience of all of the employers within that class/subclass.

Step 3: Employer Level Premium Rate Adjustments

The rate framework takes a prospective rate setting approach. We are introducing something called ‘projected premium rates.’ In addition to your annual rates, you will be given the future direction your premium rate is going (up or down). We are also capping changes so that they are spread over time. This will help keep you informed, prepared and allow you to adjust for the future. This means that you will be given projected premium rates in advance of your actual rate, to help mitigate future risk early on, such as by investing in health and safety initiatives. This will result in an overall safer workplace.

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