Things to consider when voting for or against the ICP program

The Workers’ Compensation Board is re-polling a number of industries to see whether their members want to continue participating in the WCB’s optional Industry Custom Pricing or ICP program. As we have discussed before on the BCL blog, the program offers industries a choice of whether to remain in the traditional system for calculating premiums or to agree to be part of ICP, and while there are benefits to being in this program, there are also some strong negatives, and it’s important to consider both before you agree to join or rejoin.

Under custom pricing, companies can get lower premiums in return for giving up the option for cost relief for pre-existing conditions or for allowing the WCB to modify the rate-setting calculations for that industry. The last province-wide vote was held in September of 2025. All the members of a given industry get to vote on whether to become part of ICP, and if companies representing more than 50% of the total assessable earnings vote in favour, every member gets included in the program, regardless of how they voted (although companies have the option to change their vote up until the voting is closed).

In most cases, industries remain covered by the program for five years, but if enough members of an industry vote that they want to be re-polled on their participation in ICP, the WCB allows for a re-vote three or four years after the initial vote. This appears to be happening with some industries — members of a number of sectors got letters from the WCB recently that laid out the benefits of the program, including estimates of how much that industry has saved in premiums by belonging to the ICP plan. In at least one case, that estimate is more than $2 million, in premium savings, compared with standard pricing.

While this might make the ICP program seem enticing, there is a bigger picture worth considering. In most cases, companies will pay more in premiums under ICP than they would using the standard pricing model. Some companies might expect to pay less because their accident or injury record is better than most of the other employers in the industry, so there is an incentive for them to join (and if one or two large members of your industry sign up, that could push you into ICP whether you want to be in it or not). However, within the 5 year participation period the company’s safety record may not stay the same. A string of bad luck and suddenly their accident record is worse than the industry average resulting in a jump in premiums.

For many of our clients, ICP means higher premiums, because the option for cost-relief for pre-existing conditions is removed, and claim costs for this kind of injury will generally be higher. Under cost relief, the increased claim costs related to the effects of the aggravation of a pre-existing injury are removed from an employer’s account, but if an industry gives up that ability then employers will be assessed with all of those related costs, even though they are non-compensable.

The decision on whether to vote for or against joining the ICP program is complicated, with numerous benefits and drawbacks. The team at BCL can help you understand ICP and what it means for your organization. We can take a look at your operations, workforce, claims history and safety record, then advise you of the potential impact that participating in ICP could have on your WCB premiums now and in the future. We will help you make an informed decision that is right for you!

You can contact us directly during business hours using our chat feature or by telephone at 1-844-377-9545, or you can connect with us on Facebook, Twitter, or Linkedin, or you can reach us via email at [email protected].