Risk Management Program Plus (RMP+)
Workforce Safety & Insurance (WSI) has created a performance-based incentive program that gives employers the opportunity to receive a premium discount if they meet specific claim frequency and severity rates or remain loss free during the reporting period. The goal of the program is to spend less time completing paperwork and more time developing proactive and productive safety programs. There is no paperwork or audit process involved!
As a policyholder you will automatically be enrolled in the RMP+ (excluding
retrospective rated accounts, deductible accounts and minimum premium accounts).
Employers will be eligible for discounts of up to 15% based upon each employer's
reductions in the frequency (total number of claims) and the severity (total
number of days lost from work directly related to an injury) of their claims
from the previous year (baseline).
The 15% discount is achieved by:
- 5% for reducing the claim frequency rate by 10%;
- 5% for reducing the claim severity rate by 10%; and
- an additional "bonus" of 5% for reducing both rates.
Note: If you have experienced zero claims in the past and continue to do so in the future, you will automatically receive the maximum 15% discount.
Frequency
Frequency = Number of Claims Per $Million of Payroll
Frequency is calculated by multiplying the total number of claims reported in the measurement year by 1 million and dividing by the employer's total gross payroll for that year.
# Total claims x 1,000,000
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| Total gross payroll |
The year in which claims are reported is determined by the "acceptance date", i.e. the date in which WSI accepts the claim.
Claims combined into other claims, as well as "Denied" claims as of the date on which frequency is measured, are specifically excluded.
Each claim will only be counted once. Additional allowances on existing claims do not constitute new claims. Medical only and Lost Time claims are treated equally - a claim is a claim regardless of its type or severity.
An employer having no claims in the year in which its baseline frequency is established and no claims in its measurement year will be eligible for the combined frequency/severity discount because it is mathematically impossible to reduce zero by 10%.
Severity
Severity = Time Loss Days Per $Million of Payroll
Severity is calculated by multiplying the total number of time loss days during the measurement year by 1 million and dividing by the employer's total gross payroll for that year.
# Total lost time days x 1,000,000
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| Total gross payroll |
The total number of time loss days in the measurement year will be calculated using those claims accepted in the measurement year plus claims with acceptance dates in any of the four previous years.
No days are charged to the employer's severity if the claim incurring the time loss days during the measurement year is outside this 5-year period.
Combined claims, as well as "Denied Claims" as of the date on which severity is measured, are specifically excluded.
Time-loss days for the measurement year include the number of days benefits
were paid for:
If a claim experiences several periods of disability (time off work), each
period is evaluated separately, and only "time loss days" occurring in the measurement
year are counted.
An employer having no days absent in the year in which its baseline severity is established and no days absent in its measurement will be eligible for the combined frequency/severity credit because it is mathematically impossible to reduce zero by 10%.
Baseline year
Baseline year = the preceding 12 months from the premium renewal date that establishes the frequency and severity rates of accepted claims.
Sample Calculations
Baseline calculation
Measurement Year calculation
WSI Safety Professionals will be available to assist you in making safety a core value at your workplace!
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