How does WorkCover estimate claims costs?

We use F factors to estimate the final cost of claims for the year corresponding to the injury. They are calculated at a scheme level each year and are the same for all policies. 

How are F factors used?

At an individual policy level, F factors are applied to experience based rating (EBR) claim costs to estimate the likely ultimate cost of the claims for each injury year. The ultimate cost of the claim is divided by the corresponding wages for each year to establish an experience rate for each policy.

F factors for 2007-2008

F factors are listed under schedule 2, section 6 of the WorkCover Queensland Industrial Gazette (No 1) 2008. The table of F factors to apply for the 2008-2009 renewal year are:

F0 = 4.95 where

F0 is the relevant number applied to calculate the total cost of claims under the Act and the former Act to 30 June 2007 in respect of injuries incurred between 1 July 2007 and 30 June 2008 inclusive.

F1 = 2.95 where

F1 is the relevant number applied to calculate the total cost of claims under the Act and the former Act to 30 June 2007 in respect of injuries incurred between 1 July 2006 and 30 June 2007 inclusive.

F2 = 2.65 where

F2 is the relevant number applied to calculate the total cost of claims under the Act and the former Act to 30 June 2007 in respect of injuries incurred between 1 July 2005 and 30 June 2006 inclusive.

F3 = 3.40 where

F3 is the relevant number applied to calculate the total cost of claims under the Act and the former Act to 30 June 2007 in respect of injuries incurred between 1 July 2004 and 30 June 2005 inclusive.

F4 = 2.95 where