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MembershipBilling & Payment


Billing & Payment

The WCRA bills members an estimated reinsurance premium every December for the coming year. A member’s estimated premium is determined by multiplying its estimated exposure base by the reinsurance rate applicable to the retention level chosen by the member.

To calculate the estimated reinsurance premium, the WCRA uses an actuarial projection of its total exposure in the coming year. Each member is charged estimated premiums based on its pro rata share of the WCRA’s total projected exposure. The pro rata share is based on the most recent actual exposure base figures available, which are usually for the period two years prior to the coverage year being billed.

Although all WCRA members pay the same rate for similar coverage, self-insured members must pay Minnesota premium tax. The tax is added to self-insured members’ invoices. For payment procedures, please contact

The full premium amount or the first installment payment is due at the WCRA lockbox on February 1 of each year. If the payment received by February 1 is an installment payment, the remaining quarterly premiums are due April 1, July 1, and October 1. The WCRA emails premium invoices approximately 20 days prior to the due date.

WCRA members may pay their premium bills in one lump sum or in four equal quarterly installments. It is not necessary to notify the WCRA of your payment option. If the first payment received is an installment payment, the WCRA will automatically send invoices for the remaining quarterly premiums. There is no additional fee or penalty for choosing to pay in quarterly installments.

Yes. Premium payments must be received at the WCRA’s bank by the due date indicated on the premium notice to avoid late fees.

The WCRA annually audits 20 percent of its membership with exposure to assist members with proper reporting and to help them learn more about WCRA services. The WCRA premium audit staff initiates contact with members to schedule audits and identify documentation they will need to review.

Between May and July each year, WCRA staff calculates a reinsurance premium adjustment by member when the actual adjusted pure premium exposure figures for the previous year become available. For example, the WCRA billed its members for 2022 premiums in December 2021. The most recent audited exposure base figures available at the time of billing were for calendar year 2020. The 2022 premium is adjusted based on the actual 2022 data available after the close of the year. In most cases, 2022 premium calculations will be finalized by July 2023, one and one-half years after the original estimate.

The premium notices issued each September include any adjustment for the previous coverage year’s reinsurance premium. If the estimated premium was less than the actual premium, the member’s payment to the WCRA for the additional premium is due by October 1. If the estimated premium was greater than the actual premium, the WCRA applies this credit to any remaining premiums due. If a credit balance remains, the WCRA automatically refunds this amount to the member.

The following sample reinsurance premium adjustment calculations are for an insurer member at the low retention limit, using hypothetical “company” figures, 2022 exposure levels, and 2022 reinsurance rates.

Calculation 1: Estimated 2022 Reinsurance Premium (prepared Dec 2021)

2022 estimated WCRA exposure base $12,000,000
2022 insurer reinsurance rate for low retention x 7.95%
Estimated 2022 WCRA premium $954,000


Calculation 2: Actual 2022 Reinsurance Premium (prepared May 2023)

2022 actual WCRA exposure base $13,000,000
2022 insurer reinsurance rate for low retention x 7.95%
Actual 2022 WCRA premium $1,033,500


Calculation 3: 2022 Annual Adjustment (billed August 2023)

2022 actual WCRA premium $1,033,500
Less estimated 2022 WCRA premium -954,000
2022 Annual Adjustment $79,500