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Member, Beacon International Group, Ltd.
EDMONTON, AlbertaThe Workers Compensation Board of Alberta said it plans to reduce employer premiums by 14% in 2006 due to a solid decline in workers comp claims and a steep increase in its operating surplus.
The WCB posted a preliminary average premium rate of $1.57 per $100 Canadian of insurable earnings for 2006, a 14% drop from the rate in 2005. This follows a 7.6% decrease in average premiums from 2004 rates. The final premium rate for 2006 will be set in November.
Canadian workers comp coverage is provided largely by provincial workers comp boards and financed by employer-paid premiums.WCB President and Chief Executive Officer Guy Kerr said efforts to improve workplace safety are paying off. Alberta workers had 1,600 fewer time-lost claims in 2004, and average claim duration dropped 18% from 49.2 to 40.1 days.
These results, combined with more employers paying into the system and good investment performance, led to a 64.2% increase in the operating surplus of the WCB last year. The surplus stood at $254.4 million Canadian ($211.4 million) at the end of 2004.
"We must maintain these positive trends, and remain focused on preventing injuries and helping Albertans return to work safely through 2005, to see another premium rate reduction in 2006," Mr. Kerr said.