b'WSIB WSIBNEW WSIB PREMIUM RATE-SETTING MODELO n January 1, 2020,profile and share of responsibility the Workplace Safetyto maintain the insurance fund.and Insurance Board (WSIB) moved to a newSecond, that class is then further premium rate-settingdivided based on risk and model.experience, with each risk band H OSWCA Magazinegiven an associated premium rate 2 approximately 5% higher or lower spoke with Janine Dyck, Vicethan the one before it. President of Employer Services, WSIB, about the changes and how the new Rate Framework willThird, we look at each business impact OSWCA members. specific claims history to create a risk profile that compares their risk to the rest of the businesses Q:How are businesses classifiedin their class. Businesses in the under the new premium rate- same class, with similar risk setting model and how areprofiles will be assigned to the OSWCA members impacted?same risk band and premium rate that reflects their individual A:The new model makes it easierrisk profile. to understand how businesses are classified. By using the North American Industry ClassificationQ:How soon can contractors System (NAICS), we have stream- expect to see tangible benefits of lined classification and movedthe new rate-setting model?from 155 different rate groups toJanine Dyck, Vice President,34 class/subclasses. Employer Services, WSIB A:Our new rate-setting approach helps businesses better plan Under this system, most sewerfor any future changes to their and watermain contractors are inON JANUARY 1, 2020,premium rate today.NAICS class G2 Infrastructure Construction. However, basedOn 2020 premium rate state-on individual business activities,THE WORKPLACEments shared in September, we OSWCA members may beprovided businesses with their classified under a different class.SAFETY ANDrate and a projected rate. In Businesses can view our newaddition to knowing what they Employer Classification Manual forare paying in 2020, the projected information.INSURANCE rate provides the future direc-tion, up or down, that their BOARD (WSIB)premium rate is headed if there Q:How are premium rates set inis no change in their individual the WSIBs new model? and class experience from MOVED TO A NEWyear-to-year.A:Our new model better reflects individual claims experiencePREMIUM Additionally, contractors no by following three steps to setlonger have to wait for rebates or premium rates.RATE-SETTINGsurcharges. Our new model uses a prospective rate-setting approach First, we set an average premiumthat considers experience each rate for each class based on its riskMODEL.year when we calculate premium 22 H 2 OSWCAFall/Winter 2019'