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Rate Framework: Resources



FAQs

General Rate Framework

1. What is the rate framework?

The rate framework is an innovative rate setting structure intended to increase the transparency of the premium rate setting process to better align employer premium rates with actual costs of the system. The rate framework will change the way Schedule 1 employers are classified, and how premium rates are set and adjusted.

2. Will this mean increased or decreased rates for employers?

As an employer, the premium rate you pay for your WSIB coverage will be more reflective of your individual claims experience. Any changes to your rates will be phased over time to allow you to adjust to the new rate.

3. When will the rate framework come into effect?

The WSIB board of directors has approved an implementation date of January 2020. The WSIB is committed to ensuring that the transition to the new model occurs in a manner that fosters stability.

4. What are the benefits of the rate framework (changing the classification scheme and premium rate setting processes)?

The rate framework model will increase transparency of the premium rate setting process and will also better align employer premium rates with actual costs of the system. One of the key concerns with the current approach to employer classification and setting premium rates is that it does not accurately reflect the individual risk and experience of employers. As a reference, below are detailed goals of the rate framework:

Simpler Classification

We will be moving from our current classification structure to the NAICS (North American Industry Classification System) based classification structure. The NAICS structure is used by Stats Canada to classify employers all across Canada.
In the rate framework, employers will be assigned to a Predominant Class. This is generally based on the Class that represents the employer’s largest percentage of insurable earnings.

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<p>The rate framework provides an approach that ensures a fair premium for workplace coverage, and is based on each employer’s individual risk and claims experience.</p>
<h3><img src=Premium Rate Stability

The rate framework takes a prospective rate setting approach. This means that you will be given projected premium rates in advance, which will act as an early indicator of the direction of your premium rates.

Easy to Understand

The rate framework will be very clear, simple and easy to understand, and promotes active and informed participation by all parties.

Collective Liability

We will continue our risk sharing arrangement among all employers who collectively pay premiums to maintain the insurance fund. The rate framework is revenue neutral – the amount of premium dollars collected by the WSIB will not change.

Ease of Administration

Since the rate framework is very clear in its classification and rate setting approach, this will mean a more efficient and effective system for employers and for the WSIB to administer and maintain.

5. I can’t find the specific information I want on the WSIB website. Where can I get more information on the rate framework?

If you have a specific question that is not answered by the rate framework information on the WSIB’s website, you can send your question by email to consultation_secretariat@wsib.on.ca

6. Will I be getting more rate framework information from the WSIB before it takes effect?

Yes, while we transition into the rate framework, we will be actively engaging with all of our stakeholders to ensure every employer is engaged and educated about the new model.

Construction and Mandatory Coverage

1. What is happening to the current Rate Group 755?

The rate framework does not include special exceptions or anything similar to rate group 755 with regards to the rate setting process for non-exempt partners and executive officers in construction. The WSIB and government will continue to assess the issue of non-exempt partners and executive officers in construction.

Experience Rating

1. How will the rate framework impact my current experience rating plan?

When the rate framework is introduced in 2020, the current experience rating plans will cease. The last CAD-7 and NEER assessments will be issued in 2020, which will review the 2019 injury year and subsequent years applicable to the plans. The final MAP statement will apply for the 2019 premium year.

2. Are CAD-7/NEER and MAP ending?

Yes, all mandatory experience rating programs: NEER, CAD-7 and MAP will be ending when the rate framework begins.

3. Will you be using all claims to calculate my new rate under the rate framework?

Yes, however certain claims will be excluded and capped as is currently done.

4. Will this include claims that are allowed but do not have costs associated with them?

Yes, all allowed claims will be considered to calculate the new rate under the rate framework, including claims with “zero” costs.

5. Will NEER/CAD7 still be a part of the rate framework?

No, your individual premium rate will be more reflective of your organization’s claims experience.

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