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2017 Average Assessment Rate

The average assessment rate for New Brunswick employers in 2017 will increase from $1.11 per $100 of payroll to $1.48 per $100 of payroll. This is the first increase since 2010. 

Read more about the 2017 average assessment rate.

Resources: 

News Release: WorkSafeNB announces increase in average assessment rate for 2017

Power Point:  Stakeholder Presentation 2017 Assessment Rates

Policy: Setting Basic Assessment Rates

Understanding Assessed Premiums

Report: 2017 Assessment Rates

Tables: 2017 Industry Assessment Rates

Video: How rates are set

FAQ: 2017 Average Assessment Rate

  1. What is the 2017 average assessment rate?

    The 2017 average rate has been set at $1.48 per $100 of payroll.  This represents a 33% increase over the 2016 rate of $1.11.  This is the first rate increase since 2010. Over the last six years, the average rate has declined from $2.08 in 2010 to $1.11 in 2016.

  2. How does the rate increase break down?

    • $0.20 – When WorkSafeNB’s funding position is above the board’s target of 110%, policy directs us to reduce funding levels by lowering assessment rates. In previous years, New Brunswick employers received a significant reduction in assessment rates. The 2016 rate contained a $0.43 reduction. The 2017 rate will contain a smaller reduction of $0.23 due to our declining funding position. 
    • $0.08 – In 2016, changes to benefits have increased the estimated revenue required. Several decisions by the Workers’ Compensation Appeals Tribunal (WCAT), which the province enacted on April 1, 2015, impacted WorkSafeNB’s 2017 liabilities by an estimated $87 million. Amortizing that amount over eight years (as per policy) adds $0.12 to the rate to provide these benefit changes to existing clients. However, some of these changes, amounting to $0.07 on the rate, were accounted for in the 2016 rate reduction outlined in the bullet above. A further $0.03 is added to provide these benefit changes to future clients. (See Power Point: Stakeholder Presentation 2017 Assessment Rates for a breakdown of the 2016 benefit changes.)   
         
    • $0.09 – The board of directors has approved increases in the cost of benefits over and above the WCAT decisions and administration costs, as well as a new initiative to improve service. 
        
  3. How does the rate compare across the country?

    For the last few years, New Brunswick’s 14,400 employers have experienced the second lowest average assessment rate in Canada – and the lowest in Atlantic Canada – in part because of declining claim costs and a strong funded position. With the increase for 2017, the average assessment rate is expected to be below the median when compared to other provinces, and remain the lowest in Atlantic Canada.

  4. Do all industries pay assessments at the average rate?

    No – all employers are assigned a basic rate based on their rate group classification.

    First, employers who register for coverage with WorkSafeNB are assigned to one of 789 industries based on their primary business activity. Industries involved in similar activities and expected to have similar cost experience are then combined into one of 75 industry groups.  Finally, industry groups with similar claim cost profiles are combined to one of 19 different rate groups.  Rates range from $0.30 to $4.90.

  5. Why were some industry groups moved to a different rate group? 

    WorkSafeNB monitors industries and industry groups every year to ensure that their claim cost profile continues to match the profile of their group.  

    Because some industries’ claim cost profiles were significantly higher than the average of their former group over a number of years, they were moved to a higher one. Most of these industries will see a 2017 basic rate increase of 53%, based on the 33% increase in the average assessment rate plus the annual transition limit of 20%. 

    Other industries were moved to a lower rate group because their claim cost profile was significantly lower than the average of their former group over a number of years.  Most of these industries will see a 2017 basic rate increase of 13%, based on the 33% increase in the average assessment rate minus the annual transition limit of 20%. 

  6. What do I get for my premiums?

    In New Brunswick, workers' compensation is administered through a no-fault insurance system set up under the Workers' Compensation Act. The system is designed to protect employers and workers by compensating injured workers while protecting employers from being sued by workers who are injured on the job.

  7. How can I lower my assessment rate?

    By preventing injuries and disease, accommodating injured workers at work and helping them return to work safely, you can reduce claim costs and ultimately assessment rates. 

  8. What if I still have a question?

    For information on the average assessment rate, email your question to Assessment Services. For information on the 2016 benefit changes, email your question to Planning and Policy.

     







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