An Update to the Push for Schedule Rating in Wisconsin

As you may know, several carriers have been advocating for the implementation of schedule rating in Wisconsin. Early last year the IIAW Board of Directors voted unanimously to oppose efforts within the Workers Compensation Rating Bureau (WCRB) to recommend to the Commissioner of Insurance that Wisconsin move to adopt schedule rating. As a result, IIAW Government Affairs Chairman Jeff Thiel and I have been very active in presenting at and attending WCRB meetings and voicing our opposition to any effort to adopt schedule rating. The IIAW has also discussed our opposition with Wisconsin Insurance Commissioner Mark Afable and his staff.

On September 2, 2020 a motion was brought forward within the WCRB’s rating committee that would have advanced the exploration of schedule rating in Wisconsin. The vote on the motion resulted in a 6-6 tie. In the event of a tie, the motion goes to OCI to break the tie. On September 16th, the IIAW was notified that OCI had chosen to abstain from voting on the motion whether to move forward with further evaluating the extent of industry support for schedule rating in Wisconsin.

Pursuant to WCRB Bylaws, Article XI, Paragraph 2, because a majority of members of the Rating Committee did not assent to the motion and the OCI abstained, the motion did not pass. 

We will continue to monitor the situation, but we hope, for now, the issue of advancing schedule rating in Wisconsin is dead. If more action is taken, we will be sure and communicate accordingly to our members and move aggressively to defeat it. The IIAW wishes to thank those carriers that voted against schedule rating and stood with their independent agency sales force in opposition. If you have any questions regarding the events that occurred and would like additional insight and information, please do not hesitate to contact me.