How Schedule Rating Drives Utilization, Outcomes, and Pricing Precision:
The Schedule Rating program provides carriers with flexibility to adjust workers’ compensation premiums based on risk characteristics not fully captured by standard rating plans. To evaluate how the program is being applied in practice, PCRB analyzed schedule rating experience across policy years 2006 through 2022, including both the Bureau’s plan and independently filed carrier programs.
This report examines participation levels, premium impact, policy characteristics, and loss experience for schedule-rated and non-schedule-rated risks. By analyzing long-term trends, the report provides insight into how schedule rating continues to function within Pennsylvania’s workers’ compensation system and how it influences pricing outcomes across different segments of the market.
60%
Approximately 60% of eligible premium is subject to schedule rating.
What’s in the report
- The program continues to be applied to a substantial share of eligible premium, reflecting its role as a core pricing tool for carriers.
- While carriers generally align on which risks warrant adjustments, credits applied in practice remain significantly higher than indicated, while debits track more closely with actuarial indications.
- As the program has matured, average policy size among participants has declined, reflecting broader adoption across a wider range of employer sizes.