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Stability in times of volatility

WCB-Alberta maintains a stable average premium rate for Alberta’s employers

EDMONTON, AB – While the value and price of everything around us either climbs or plummets, employer premium rates remain affordable and stable at $1.32 per $100 of insurable earnings.

“We have benefited from our stakeholders’ strong performance and some long-term thinking about our funding requirements,” says Guy Kerr, president and CEO of WCB-Alberta. “Employers and workers can take credit for having fewer claims overall, reducing the incidence of lost-time claims, and for finding and using opportunities for modified work.” These efforts have helped the organization mitigate the impact of today’s capital markets.

Like most companies, WCB-Alberta has not been sheltered from the uncertainties of investments. But the lower value of WCB’s investment portfolio has not translated into a financial impact on employers due to a strong funding position and a number of investment risk mitigation strategies. Alberta legislation requires the organization to be 100 per cent funded at all times. WCB’s own policies require a minimum funding level of 114 per cent and the organization expects to end the year at that level. The drop in overall funding reflects the reduced value of WCB-Alberta’s investment portfolio and a $348 million dividend paid to employers earlier in the year.

“We know that only through long-term financial stability can we ensure worker benefits remain protected and employer premium rates remain reflective of their efforts to keep workers safe,” says Kerr. “We are working hard to ensure we remain financially stable for the long term.”

Other key business drivers for the organization’s performance include the following forecasts for 2009:

  • The average number of days a worker remains off the job will hold steady at 32.7 days – an all time low in Alberta
  • The lost-time claim rate is predicted to remain at 1.7 per 100 workers
  • The number of workers covered in the province will grow to 1.92 million
  • The disabling injury rate is expected to drop slightly to 3.3 per 100 workers

In a meeting with employers, Kerr reiterated his belief that right now it is critically important to remain dedicated to making safety a priority and to be proactive in planning for the future. His message to employers was reassuring: “If we continue to partner in safety and disability management, I am confident that we can deal with the challenges ahead.”

The Workers' Compensation Board (WCB) - Alberta is a not-for-profit organization legislated to administer the workers' compensation system for the province. Through the payment of premiums, 135,000 employers fund this no-fault system to provide compensation for workplace injuries and occupational diseases to over 1.74 million workers.

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2009 Premium Rate Fact Sheet (pdf, 465 KB)
2009 Premium Rate Highlights (pdf, 157 KB)

Media Inquiries: Jennifer Dagsvik
Media Relations Specialist
WCB-Alberta
Phone: 780-717-5855
Fax: 780-498-7875
E-mail: jennifer.dagsvik@wcb.ab.ca