Online support available Monday through Friday 7:30 a.m. - 5:30 p.m. Click here to get help!
OhioBWC - Basics: Individual-retrospective-rating plan
Individual-retrospective-rating plan
The individual-retrospective-rating plan allows an employer to assume a portion of the
risk in return for a possible reduction in premiums. The greater the assumed
risk, the greater the potential reduction in premiums. Employers who have a
consistent claims history and proven safety practices will benefit the most
from individual-retrospective rating. You can customize the plan to
control the amount of risk you assume and the potential savings by selecting a
maximum premium and maximum claims costs you are willing to pay. You may
benefit from individual-retrospective rating because of lower initial premiums
and realized cash flow advantages, which increase as premiums decrease.
The drawbacks of individual-retrospective rating may outweigh the advantages for some
employers. For example, if you incurred high losses in a rating year, actual
premiums could double.
