Insights

Why Performance Matters

Posted in: WCB Premium Reduction | Posted by Rebecca Ingram on September 11, 2017

When it comes to WCB premiums, its performance – in terms of the number and severity of work-related accidents, incidents and illnesses – that has a significant impact on premium rates. Simply put, employers who have a large number of WCB claims and high WCB claims costs will pay more in WCB premiums than employers with few or no WCB claims and little or no WCB claim costs. Although the WCB provides discounts and rewards for employers with good accident records, the primary incentive to get employers with poor performance histories to make immediate improvements to their disability management and prevention programs is through monetary repercussions. The Poor Performance Surcharge (PPS), which is levied on large employers (i.e. employers who pay more than $15,000 per year in industry rated premiums in a 3 year period) who have consistently poor accident records over consecutive years. It is, perhaps, the most detrimental […]

WCB Accident Fund Surplus: Have Your Say

Posted in: Claims Costs,WCB Law,WCB Premium Reduction,Worker's Compensation Board | Posted by Rebecca Ingram on December 20, 2016

As part of the government directed WCB Review currently underway in Alberta, the Review Panel is taking a closer look at WCB-Alberta’s Accident Fund and how it is managed. This has been a topic of discussion in recent workshops and the Panel is very keen on getting as much input as possible from stakeholders. WCB Accident Fund The Accident Fund is established from Employer Premiums. The WCB is funded through premiums assessed to employers. There are no tax dollars or employee payroll deductions involved in the workers’ compensation system. Each year the WCB establishes the premiums that employers will pay. These rates are set so that the total premiums collected in the current year will pay for all estimated present and future costs of claims that are made during that year. Based on the overall amount of premiums that need to be collected, the WCB determines premium rates for each […]

Worker’s Compensation Board Under Review

Posted in: Claims Costs,WCB Law,WCB Premium Reduction,Worker's Compensation Board | Posted by Rebecca Ingram on December 5, 2016

In March 2016, the Alberta Government announced that it would be conducting a review of the province’s workers’ compensation system. Although the Workers’ Compensation Board (WCB) is not a government agency per se, the WCB was created by the Alberta Government to administer the Workers’ Compensation Act and as such, is responsible to ensure the WCB is operating as fairly, efficiently and effectively as possible. To that end, an independent three-member panel is conducting a formal review of the entire workers’ compensation system, including the WCB, the Appeals Commission and the Medical Panel Office. As part of the review, the Panel is looking at how things are done, how effective the process is, what is working, what is not, what needs to be improved and what needs to be changed. From June 6, 2016 to July 15, 2016, the Review Panel asked for input from Albertans to share their opinions […]

A Cost Free Way to WCB Savings: Historical Claim Review

Posted in: Claims Costs,WCB Premium Reduction | Posted by Rebecca Ingram on October 26, 2016

During November and December every year, most Workers’ Compensation Boards (WCB) across the country send out the annual Experience Rating statements to employers. These statements include figures used in the calculations to establish their WCB premium rates for following year. Provided, on the statement, is a list of all the claims and associated costs that are used to determine any discount or surcharge being applied to the premium rate. Seeing your WCB claims history laid out along with the financial impact associated with those claims, can be a jolt to the system! As an employer, have you ever wondered if all the costs on your WCB claims are your responsibility? Are the costs on a claim relative to the work-related injury? Have you ever felt that something was not quite right with a claim but couldn’t put your finger on it? Or have you wondered whether there were special circumstances […]

How to Reduce the Cost of WCB Premiums

Posted in: Accident Prevention,Claims Costs,Safety,WCB Premium Reduction,Workplace | Posted by Rebecca Ingram on August 15, 2016

The calculation of WCB Premiums is complicated and can be daunting to understand. Some employers feel so confused by the complexity of the process that they believe that they are at the mercy of the WCB, and have no control over the rate they are assessed. While many of the components and formulas used to determine premiums rates are fixed, there are some simple things employers can do that will have a positive impact on their rate. Here are couple of strategies for lowering WCB Premiums: Reduce Claims Costs: The single most important thing an employer can do is try to reduce the number of work-related claims they have, and the costs associated with those claims. The impact of claims costs can be seen in the Experience Ratio (ER), or how an individual employer’s costs compare to their industry average. This comparison will also determine the amount of discount or […]

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