ABOUT ICP

What Is Industry Custom Pricing?

Industry Custom Pricing (ICP) is a program that allows industries in Alberta to tailor their workers’ compensation insurance costs.

Think of it like a group decision—employers in an industry vote on whether to participate in Industry Custom Pricing and which pricing options their industry will use.

Industries can participate in one or both ICP options:

  • Waiving of Cost Relief (CR)
  • Experience Rating (ER)

If employers representing 50.01% or greater of the industry's assessable earnings vote in favour of remaining in ICP, the industry will continue participating in ICP beginning in the next premium rate year. If the vote does not pass, or if not, enough votes are submitted, the industry will return to Standard Pricing.

ICP lets industries customize parts of how premiums are set. Through Industry Custom Pricing, industries can choose to increase the maximum experience rating discount and surcharge range from 40% to 60% for large employers, remove the cost relief levy from their industry rate, or select both options. Any option chosen applies to all employers in the industry.

Download the WCB Fact Sheets here:

  • Industry Custom Pricing (ICP)  (Last Update: May 20, 2025 • WCB-542)
  • Waiving of cost relief option  (Last Update: April 16, 2026 • WCB-565)
  • Participating industries and re-polling schedule (Last Update: May 25, 2026 • WCB-562) 
  • Experience Rating (ER) Option  (Last Update: April 16, 2026 • WCB-561)
  • The Polling Process (Last Update: June 25, 2025 • WCB-554)

How does it work?

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    Industry vote: Every employer in the industry can vote. The outcome is determined by employer votes weighted by assessable earnings (payroll).
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    All included: If employers representing 50.01% or greater of the industry's assessable earnings vote in favour of remaining in ICP, all employers in the industry will continue participating in the applicable ICP option, regardless of how they voted.
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    Re-polling: Industries are normally re-polled every five years to confirm whether they want to continue participating in ICP. An industry may also be re-polled earlier if there is sufficient evidence that employers want to change their ICP option or return to Standard Pricing.

Important: If you do not submit a vote, it will be counted as a vote to return to Standard Pricing (exit ICP). Make sure to cast your vote so your voice counts in the outcome.

ICP Options (Simplified)

  • E
    Experience Rating (ER) Option: Increases the maximum discount and surcharge range for employers in the large business experience rating plan from 40% to 60%, making premium adjustments more reflective of an employer's claims performance. Small employers remain in the standard 5% adjustment range.
  • E
    Waiving of Cost Relief (CR) Option: Removes the cost relief levy from the industry rate, lowering upfront premiums. In exchange, employers are no longer eligible for cost relief related to prolonged recovery resulting from the aggravation of a pre-existing condition. All other types of cost relief, cost transfers, and maximum per-claim cost protections remain available.

Industries can choose either option individually or participate in both options.

Potential Benefits of ICP:

  • Lower Upfront Premiums: Industries participating in the Waiving of Cost Relief (CR) option have the cost relief levy removed from their industry rate, reducing upfront premiums.
  • Performance-Based Pricing: Premium adjustments become more reflective of an employer's claims performance, with larger discounts and surcharges available under the Experience Rating (ER) option.
  • Greater Control: Industries can customize features of their pricing program, including participation in the Experience Rating (ER) and Waiving of Cost Relief (CR) options.
  • Shared Accountability: ICP promotes accountability by making premium adjustments more reflective of employer performance, encouraging injury prevention and safer workplaces.

Standard Pricing vs ICP Pricing

 

Feature Standard Pricing Industry Custom Pricing (ICP)
Industry vote needed? No Yes – employers representing greater than 50% of assessable earnings must vote in favour.
Discounts/Surcharges Up to 40% (large employers) Up to 60% (with ICP-ER option).
Participation factor Fixed by size Can be adjusted for bigger impact.
Cost Relief Levy Included in rate Removed if industry waives cost relief.
Impact of not voting N/A Counts as a vote to return to Standard Pricing.
Who decides? WCB pricing program applies Employers vote on whether to participate in ICP and which ICP option(s) their industry uses
Pricing options

Standard pricing features apply to all industries

 Industries can choose the Experience Rating (ER) option, the Waiving of Cost Relief (CR) option, or both.
Ongoing polling No automatic re-polling cycle Industries are automatically re-polled every 5 years