Workers are protected from their financial losses due to workplace injuries and work-related diseases by workers’ compensation. The existence of workers’ compensation is critical to provide a safe working environment for all Canadians.
Workers’ compensation plans, more formally known as public personal injury compensation plans (PPICPs), provide wage replacement, health care and physical and vocational rehabilitation to workers who suffer job-related injuries or diseases. Benefits are also available to survivors, such as spouses and children of workers who die as a result of job-related accidents or diseases.
Each province and territory has a workers’ compensation board entity set up under its own legislation that administers this insurance arrangement and stipulates how the board is to be governed. The governing body often includes representatives from the employer, labour and public interest communities.
Actuaries in the workers’ compensation practice area ensure the financial obligations to workers are properly valued and the employers who fund the systems are paying adequate premium rates. The actuarial functions involved in PPICP work parallel actuarial practice in other types of insurance. Actuaries in this practice area typically have the following skills:
- valuation of liabilities;
- setting assessment rates;
- costing of potential legislation or policy changes; and
- financial projections – deterministic and stochastic.
Curious about how you can bring in new ideas to workers’ compensation practice?
The actuarial career path isn’t all about risk – it comes with a variety of rewards, too. From the opportunity to bring in state-of-the-art models like artificial intelligence and machine learning, build in-house actuarial computer applications and collaborate across teams to improve workplace safety, actuarial careers are multi-faceted and intriguing.