- Average Premium Rate Drops 4.4% to $1.51
- Lowest Rate Schedule in Nearly 30 Years
- 33,583 Employers Have 2014 Rate Reduction
- Safety Performance and Higher Reported Payrolls Key Factors
The WCB Board has approved a 2014 premium schedule with lower premiums for employers in 40 industry codes. The decreases range from 0.9% to 12.0%, and drop the average premium rate from $1.58 to $1.51 per hundred dollars of payroll.
WCB Chairperson Gord Dobrowolsky says it is the lowest rate schedule approved since 1987 and that the average premium rate is 26.3% below an eleven-year high of $2.05 in 2004. The schedule also has premium increases in 8 industry codes, and no change in another 2 industry codes. The increases range from 1.6% to 5.2%.
Dobrowolsky adds that employers will receive letters this week with the specifics of their 2014 premium rate. “An employer’s premium rate is a reflection of their safety record. Good safety records push premiums down and can earn an employer a premium discount. Higher injury rates and costs push premiums up, and can earn a surcharge.” For 2014, the WCB expects to apply $28.5 million in discounts and $27.4 million in surcharges against employer premiums.
The WCB is forecasting growth of $1.4 billion in assessable payroll in 2014, generating an increase of $8.6 million in premium revenue. WCB CEO Peter Federko explains those forecasts were the second driver of a lower average premium for next year.
“Our economy continues to boom, giving us a higher assessment base. This combined with decreasing claims provides for significant reductions in the premium rate; a testament to injury prevention being the most effective way to keep premiums down,” Federko says.