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WCB projects lower premium rates for 2005
Supporting documents
- Backgrounder (PDF 32 KB)
- 2005 preliminary rates
August 3, 2004, Richmond, B.C. — The Workers' Compensation Board (WCB) is projecting a 4.1 percent decrease in the overall premium rate for 2005. The rate reduction reflects the recent years' trends of lower injury rates, lower duration of injuries, and the success of the WCB's WorkSafe initiative — the shared commitment of employers, workers, and the WCB to prevent injuries, diseases, and fatalities from occurring in the first place.
The 2005 aggregate base rate is projected to be $1.975 per $100 of assessable payroll, compared to $2.059 in 2004. "This is a good news story for B.C. employers because their rates are among the lowest in Canada," said WCB Chief Financial Officer, Sid Fattedad. "Fewer workers are being injured on the job — and that means lower claims costs and lower rates."
In recent years the WCB has maintained stable premium rates for employers. "The B.C. WCB has accomplished this at a time when insurance rates for both workers' compensation and general insurance in North America have typically been increasing substantially," said Fattedad.
In 2005, lower base rates are projected for hospitals, long term care facilities, public school districts, universities, poultry processing, auto and aircraft assembly, auto dealerships, and financial institutions. Each of these industry groups will see a 20 percent reduction in their workers' compensation premium rates.
Key industries whose rates are projected to increase include logging, industrial construction and shake or shingle mills. "Premiums are driven by injury costs," said Fattedad. "Industries can influence their rates by improving safety and return-to-work programs and through effective disability management." To this end, in order to assist industries to lower their injury and premium rates, the WCB has helped establish safety associations in the forestry, construction and agriculture industries, participated in the Forest Safety Task Force and developed sector-based business teams to work closely with industry and labour groups.
Overall, approximately 56 percent of employers will have no change or a reduction in their 2005 premium rate and 44 percent of employers' rates will experience an increase.
The WCB is releasing preliminary rates to provide reasonable notice to employers and an indication of the direction of their premium rates. Preliminary rates are reliable as indicators; however they may differ when final rates are set in October.
Information on the 2005 preliminary rates is available on the WCB's web site at www.WorkSafebc.com.
Serving nearly two million workers and more than 175,000 employers, the
Workers' Compensation Board of B.C. is a provincial statutory agency governed
by a Board of Directors and funded by employers. The WCB is committed
to a safe and healthy workplace, to providing return-to-work rehabilitation
and legislated compensation benefits to workers injured as a result of
their employment, and to being responsible, accountable and financially
sustainable.
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For more information please contact: |
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Donna Freeman |
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