Analysis of the state, provincial and federal jurisdictions in the US, Canada, and Australia shows that the majority of jurisdictions use competitive or exclusive state funds to provide some or all of the workers’ compensation insurance needs within their respective jurisdictions. Provision of workers’ compensation insurance solely by private or mutual insurance is common in many jurisdictions either as the only option or in a market competing with state funds.
- Private and mutual insurers only jurisdictions
- State Fund and Private Insurance competitive jurisdictions
- Exclusive “State” Fund Jurisdictions
[(Worker Benefits Paid)/payroll*100]/ [(Employer Cost)/payroll*100]=
(Worker Benefits Paid)/ (Employer Cost)
This ratio represents the proportion of employer costs (mainly premiums paid for workers' compensation insurance) in a year that are paid out in cash benefits (compensation and medical costs, regardless of year of injury) in that same year.