Rate Framework: Understanding your 2020 premium rate

Your 2020 premium rate is the actual rate that you will pay in 2020.

It is based on your assigned starting point rate (which reflects your claims experience and 2019 rate group rate), the size of your business, new NAICS classification, your projected premium rate and whether or not you were in an experience rating program previously. Your projected premium rate provides the future direction, up or down, that your rate is headed if there is no change in your individual and class experience from year-to-year.

Visit 2020 premium rates for an overview of our 2020 rates.

Starting point rate

As you move to our new model, you are assigned a starting point rate that reflects your 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 you transition smoothly into our new model, any initial rate increases will be staggered over time.

Businesses with projected premium rate increase
  • In 2021, businesses with projected premium rate increases will move up a maximum of one risk band from their 2020 risk band.
  • In 2022, businesses that have not yet reached their projected premium rate will move up a maximum of two risk bands above their 2021 risk band.
Businesses with projected premium rate decreases

Any projected rate decreases have been applied to your 2020 rates. This will also happen in 2021 and 2022.

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