Rate Framework: How does our new model work?

Starting point rate

As we move to our new model, each business will be assigned a starting point rate that reflects their claims experience and 2019 rate group rate under our old rate-setting process.

Businesses not in an experience rating program

Businesses in an experience rating program

  • If you have one premium rate and were not previously in an experience rating program, you will receive a starting point rate that closest reflects your 2019 rate group rate.
  • If you have multiple premium rates and were not previously in an experience rating program, you will receive a starting point rate that reflects your 2019 rate group rates weighted by their payroll.*
  • If you have one premium rate and were in an experience rating program, your starting point rate will also include any experience rating adjustments made for your claims experience between 2016 -2018.
  • If you have multiple premium rates and were previously in an experience rating program, you will receive a starting point rate that reflects your 2019 rate group rates weighted by your payroll, including any experience rating adjustments made for your claims experience between 2016 -2018.*

* Example of weighted by payroll - if a business includes electrical and HVAC repairs, with 70 per cent of payroll going to HVAC services staff and 30 per cent to electrical staff, the 2019 rate group rates would be weighted 70/30 to create a single starting point rate.

Transition

To help businesses smoothly transition to our new model, any rate decreases will be applied immediately, while any initial rate increases will be phased in over three years.

2020

To determine the 2020 premium rate, businesses will be assigned a starting point rate and projected premium rate based on previous rates, claims experience, size of business, NAICS classification and whether or not they were previously in an experience rating program.
 

The projected premium rate will provide businesses with the future direction, up or down, that their premium rate is heading if there is no change in individual and class experience.

Businesses with projected premium rate decreases will move down to their projected risk band.

2021

Businesses with projected premium rate increases will move up a maximum of one risk band from their 2020 risk band. Businesses with projected premium rate decreases will move down to their projected risk band.

2022

Businesses will move up a maximum of two risk bands above their 2021 risk band. As in year two, businesses with projected decreases will move down to their projected risk band.

Starting in 2023, our policies for premium rate setting under the new model will be fully in effect. Businesses with projected premium rate increases will see their rates increase up to three risk bands per year, until they reach their projected premium rate. Businesses eligible for decreases will see their rates decrease up to three risk bands per year until they reach their projected premium rate.

For more information on the transition rules, see our Transition policy.

What if your premium rate is projected to increase?

Businesses not experienced rated

Businesses in an experience rated program