Today’s issue of WorkCompRecap features the release of a new report from the California WCIRB that explores the effectiveness of experience rating as a safety incentive for employers, leveraging over a decade of employer loss and payroll data to assess the impacts of experience rating on work-related injuries in the state.
Key findings of the report included that qualification for experience rating led to a 17% decline in claim frequency for newly rated employers compared to non-rated ones of similar size and industry. For rated employers, increases in experience modification (X-Mod) from credit (<100%) to debit (>100%) resulted in a 5% decline in the likelihood of having any claims by the third year. While a credit to debit X-Mod increase was associated with larger declines in claim frequency for employers of all sizes, medium-sized employers appeared to have the largest relative decline in claim frequency at 8%.