Skip to Content

Learning Center

Print page

Insurer Rates

Each insurance company develops its own set of workers' compensation insurance rates. These rates are used in determining what you actually pay for your workers' compensation insurance coverage (insurer rates) and are filed with the California Department of Insurance prior to use. In deriving its rates, an insurer may adopt the WCIRB's advisory pure premium rates as a starting point and add on factors to account for its administrative costs or, alternatively, an insurer may develop its own rate structure, using its own statistical and actuarial forecasting methods. In either case, once an insurer's rates have been filed with the California Department of Insurance, they must be used on the insurer's policies in effect during the applicable period. The WCIRB does not have any authority over the rates that an insurer applies to a policy.

Pure Premium Rates Vs. Insurer Rates

Insurer Rates Include: Pure Premium Rates Include:
Claims/Losses Claims/Losses
Loss Adjustment Expense Loss Adjustment Expense
Commissions  
Acquisitions Expenses  
General Expenses  
Taxes  
Dividends  
Profit  

* Pure premium rates are amended at least annually. For the current pure premium rate, visit the Publications and Filings section of the WCIRB website.

Learn about Advisory Pure Premium Rates.