For the fourth year in a row, Workplace Safety and Insurance Board (WSIB) premiums are heading down.

The board announced its schedule of employer premiums for 2020—the first year under the new rate-framework model—at its annual general meeting on September 25. The average premium rate has been reduced by 17 percent. This represents a premium decrease from a Schedule 1 average rate of $1.65 on every $100 of insurable payroll in 2018 to an average of $1.37 in 2020.

Contributing to this decrease was the decision to eliminate the Past Claims Cost component of premium rates. Labour Minister Monte McNaughton made this announcement on September 24, and the WSIB backed up this decision with the message that its operations are now better than 110 percent funded, and the board operates a reserve of more than $3.2 billion. The board indicated it was also able to lower administrative and new claims costs for the 2020 premium year.

Since 2016, the average premium rate has dropped nearly 47 percent.

"Eliminating our unfunded liability last year paved the way for us to implement a new premium rate-setting model that levels the playing field, boosts fairness and increases transparency," said WSIB chair Elizabeth Witmer. "We are pleased that we have been able to help more people recover and return to work while reducing premiums for Ontario businesses."

The WSIB also announced that its Maximum Insurable Earnings Ceiling for 2020 increased to $95,400, compared to $92,600 in 2019. Changes to the ceiling are directly linked to changes in average earnings in Ontario as measured by Statistics Canada, and provisions under the Workplace Safety and Insurance Act.

Construction rates drop nearly 20 percent

Under the new rate framework model, construction companies are now grouped into five classes—rather than 13 rate groups. In 2019, the average premium paid across the 700-series rate groups, those to which most construction companies belonged, was $3.32. For 2020, the average premium rate for construction’s five classes has dropped 19.6 percent to $2.67.

• G1        Building Construction  $2.30
• G2        Infrastructure Construction    $2.31
• G3        Foundation, Structure and Building Exterior Construction    $4.45
• G4        Building Equipment Construction       $1.84
• G5        Specialty Trades Construction            $2.47

Individual companies’ premium rates will vary based on their claims experiences. Employers can login to WSIB’s online services to see their particular premiums for 2020.

WSIB announces HSEP and new online services

Premium rates weren’t the only announcement that made news at WSIB’s AGM. The board announced that it will launch is new Health and Safety Excellence program in November. Details of the program have not yet been announced, but it is expected to replace the Safety Groups program, and help employers improve their health and safety records with a view to lowering their premium rates.

The board also announced details of a number of online services that will help employers see their premium rates and claims and costs data, and will help anyone report injuries or illnesses, upload claim-related documents, make premium payments, and register new businesses.

"Our focus now is on improving service for people and making Ontario a safer place to work," said WSIB president and CEO Thomas Teahen. "Today we announced new online services and a new Health and Safety Excellence program to help thousands of Ontario businesses become even better places to work."