The Workplace Safety and Insurance Board (WSIB) today announced details at its annual general meeting on 2020 premium rates and confirmed they will be implemented through their new ‘Rate Framework’ system.
As carriers will recall, as the WSIB eliminated their unfunded liability last year (now fully funded at 110%), the trucking industry saw a 30% decrease in premium rates from $6.97 in 2018, to $4.88 in 2019 for RG 570.
However, for 2020, premium rate setting will work differently.
As the WSIB stated today, the average premium rate for the newly created class F1 (Rail, Water, Truck Transportation and Postal Service) will be $4.27. At face value, this is a $0.61 decrease from last year’s rate for RG 570.
What is important to remember is that $4.27 is the class average for the newly created F1 Group (which is replacing the old RG 570). This means carriers will likely find their own individual rate either above or below this average.
What each specific carrier’s rate will be, according to the WSIB, is now based on their actual performance at a company level and not the rate group’s performance as was the case in the past. The WSIB will continuously track six years of past history to project future rates. For carriers that have been participating in rating programs such as NEER, they will enter the new Rate Framework system with a rate that reflects that past actual experience. In other words, a history of rebates will be positively reflected in future premium rates. Companies can find more information on the Rate Framework here.
As this new system unfolds, carriers will then see their rates begin to increase, decrease, or flatline based on their individual performance as a company. In essence, starting in 2020, carriers within the trucking industry could have widely different rates based on their own actual performance when it comes to health and safety.
Letters from the WSIB should now be on their way to carriers outlining what their individual 2020 premium rate will be. OTA expects carriers will receive these over the next few days. In the meantime, carriers can also login to their account online to check their 2020 rates.
As the WSIB moves to this new system, the Ontario Trucking Association (OTA) is reminding the WSIB that now more than ever, it needs to ensure that all carriers are paying their fair share.
As previously reported by OTA, the WSIB has moved to a more targeted enforcement approach in our industry with an eye set on those shirking their responsibilities, especially carriers using the Driver Inc. scheme. OTA expects the WSIB to keep these efforts up to ensure a level playing field as the industry transitions to the new Rate Framework system.
