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WCIRB Reports on Whether Experience Rating Affects Workplace Safety

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has released its new report, Does Experience Rating Help Keep Workers Safe? This study is based on over a decade of employers’ loss and payroll experience to evaluate the independent impacts of experience rating on work-related injuries.

The full report is available in the Research section of the WCIRB website and at the following link:

Highlights of the report include:

  • Qualification for experience rating led to a larger decline (–17 percent) in claim frequency for newly rated employers relative to non-rated employers of similar size and industry during the analysis period, three years after the first experience modification (X-Mod).
  • For experience rated employers, an increase in X-Mod from credit (less than 100 percent) to debit (greater than 100 percent) is associated with a larger decline in the likelihood (–5 percent by the third year) of having any claims.
  • The construction, manufacturing and hospitality industries have a relatively high share of employers eligible for X-Mods. In all three industries, employers that had an increase in their X-Mods from credit to debit had a larger decrease in future claim frequency than other experience rated employers.
  • While a credit to debit X-Mod increase is associated with a larger decline in claim frequency for employers of all sizes, medium-sized employers appear to have the largest relative decline (–8 percent) in claim frequency.

WCIRB Research Forum Webinar

The WCIRB is hosting a free webinar to discuss this new report. Click on the registration link below to sign up.

Does Experience Rating Help Keep Workers Safe?
Wednesday, March 29, 2023, 10:00 – 11:00 AM PT
In California, the primary statutory goal of experience rating is to provide financial incentives for employers to promote a safe workplace. While most employers pay close attention to experience rating, there is limited research on its effectiveness as a safety incentive. Speakers will summarize the results of their research assessing the impacts of experience rating on claim frequency.

For those unable to attend the live webinar, a recording will be posted in the Research section of the WCIRB website following the event and will be available to all registrants.

March 29, 2023