Schedule Rating in Practice: Utilization, Outcomes, and Pricing Precision
Schedule rating allows insurers to adjust workers’ compensation premiums based on risk characteristics not fully reflected in standard rating plans or prior loss experience. To evaluate how this tool is applied in practice, DCRB analyzed schedule rating experience across policy years 2006 through 2022, including both the Bureau’s plan and carrier-specific programs.
This report examines participation levels, premium adjustments, 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 influences pricing outcomes and how closely applied adjustments align with underlying risk across Delaware’s workers’ compensation system.
27%
Actual schedule rating credits average approximately 27% across participating policies.
What’s in the report
- While participation is limited to a portion of eligible policies, schedule-rated risks account for a significant share of total premium, reinforcing its importance in carrier pricing strategies.
- Credits applied in practice remain higher than indicated, while debits tend to be lower, suggesting adjustments do not fully align with observed loss experience.
- As utilization has expanded, average policy size among participants has declined, reflecting increased adoption across a wider range of employers.