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:

• Does Experience Rating Help Keep Workers Safe?

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.
Register

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.