WSIB lowers ’22 premiums by 5%
The Workplace Safety and Insurance Board (WSIB) announced at its annual general meeting on October 6 that it will reduce the average premium rate for Ontario businesses next year.
Premiums will drop across all sectors by an average of 5.1 percent for 2022—from $1.37 to $1.30.
The announcement comes after the WSIB held 2021 premium rates at the same level as the previous year in an effort to support businesses through the COVID-19 pandemic. Indeed, premium rates have dropped in five of the past six years. Meanwhile, the board has taken strides to increase its sufficiency ratio to a low of below 80 percent to where it is today—at 119 percent.
“Our strong financial performance allows us to ease the pressure on Ontario businesses during these difficult times while continuing to help people recover and return to work,” said Chair Elizabeth Witmer. “This is the fifth time in the last six years we have been able to reduce the average premium rate, confirming Ontario as a jurisdiction with among the most generous benefits in North America at a competitive cost.”
Construction was among those to see rate reductions.
Four of the five construction class groups saw their rates drop from a year ago. Tops among those was the Infrastructure Construction group (G2) which saw premiums drop 9.1 percent from $2.31 to $2.10. Groups G3 (Foundation, Structure and Building Exterior Construction) and G4 (Building Equipment Construction) saw their premiums drop by 7.6 percent to $4.11 and $1.70 respectively, while G5, Specialty Trades Construction, saw premiums drop 4.5 percent to $2.36.
Group G1, Building Construction, was split into two groups for 2022 to separate the residential and non-residential construction sectors. The new G1 group, Residential Builders, will pay $2.63 in premiums in 2022, while Group G6, Non-Residential Building Construction, will pay $1.79.
"Ontario construction employers and workers have continually risen to the challenge of making worksites safe while building the essential infrastructure our communities rely on,” said Giovanni Cautillo, president of the Ontario General Contractors Association.
The Residential Construction Council of Ontario (RESCON) also says it is pleased with the premium reductions, and encourages employers to invest the money they will save into initiatives to make construction sites even safer.
“Today’s announcement will allow employers in the construction industry to increase their investment in health and safety and grow their businesses, allowing construction to continue to lead the economic recovery,” said vice-president Andrew Pariser. “Premium rate decreases highlight that health and safety efforts in residential construction are working. RESCON supports the approach that the risk should be reflected in the rate. Lower rates show our safety improvements are working.”
The overall reductions means that employers will collectively pay $168 million less in premiums than they did in 2021. Since 2018, premiums have dropped by $2.4 billion.
In addition, Labour, Training and Skills Development Minister Monte McNaughton announced that the province intends to introduce legislation that, if passed, would allow for a significant portion of the WSIB’s $6.1-billion reserve to be distributed to safe employers.
The legislation would allow the WSIB to distribute surpluses when its insurance fund reaches a surplus of 115 percent surplus, and requires the WSIB to distribute funds when the surplus reaches 125 percent.
The WSIB also announced further enhancements to its online services at its meeting. Starting in 2022, businesses will be able to log in to view detailed claim information in real time, a service that was first started for people with claims in 2020.
“We are transforming the way we do business so that doing business with us is easier,” said acting president and CEO Tom Bell. “Enhancements to our online services continue to make it simpler for people to file or track a claim, for businesses to manage their accounts, or for health care providers to register, bill and get paid – freeing up their time and ours to focus on service.”
Businesses will receive their 2022 premium rate statements later this month.