Rate Framework (Archived): Review of Classification and Experience Rating

Following the release of the Case for Change, Morneau Shepell undertook a further analysis of the WSIB's current classification structure, premium rate setting process, and experience rating programs. The reviews revealed a compelling case for replacing the WSIB's current employer classification structure and experience rating programs. While the WSIB has made some changes to the current system, the analysis further reinforced that a reorganization of the WSIB's current classification structure would be extensive, and it may not be sufficient to fix more systemic issues. Additionally, the analysis suggested that the WSIB should consider exploring a prospective experience rating approach for all Schedule 1 employers at the same time.

Previous Review of Classification: WSIB – Construction Sector Working Group

A similar review to the Rate Framework Reform Consultation, specifically the reduction of employer groupings, was undertaken by a stakeholder-WSIB joint working group. In December 2008, the Joint Advisory Implementation Subcommittee – Compliance Registered Working Group, released a position paper entitled, Reduction of Rate Groups in the Construction Sector.

A number of key challenges were identified in the position paper about implementing the hybrid model. The principal challenge was the extensive reform that would also be needed on the existing experience rating programs. Ultimately, this initiative did not move forward because at the time, the WSIB was not conducting a simultaneous review of its experience rating programs. Fortunately, the scope of this Rate Framework Reform Consultation includes employer classification, premium rate setting and experience rating.