A Critical Review of Literature on Experience Rating in Workers’ Compensation Systems

In this paper we present a review of the English language peer-reviewed literature on experience rating and critically examine the framing of research questions, methodology selection, study findings, the interpretation of results and underlying logic. Two main questions are addressed: what is known about how experience rating motivates employer and worker behaviour?; what is known about how experience rating affects workplace health and safety? We conducted a comprehensive search of quantitative and qualitative literature on experience rating and claims management. Studies were appraised on several key characteristics (eg central objective, relevance), study quality (eg study design, interpretation of results) and experience-rating findings (eg how it motivates stakeholders, other health and safety incentives, cost-shifting). While some qualitative studies consider claims management, we found that few focus directly on the topic of experience rating. Several of the qualitative studies do not adequately theorise the power relations, socioeconomic context and politics of experience rating. Many of the quantitative studies were based on simplified understandings of human behaviours, and made substantial conclusions from proxy measures used in statistical models. Several studies aggregate data across multiple jurisdictions and pay little attention to the variety of contextual details. This review finds that the social and economic logic of experience rating, as well as the effects of its implementation, is an important and neglected subject in occupational safety and health research. There is still much to be learned about the topic.