Earlier today, the WCIRB testified at a California Department of Insurance (CDI) public hearing regarding the WCIRB’s July 1, 2017 Pure Premium Rate Filing which was submitted to the CDI on April 11, 2017.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci, along with President and CEO Bill Mudge, presented the actuarial basis for the WCIRB’s average proposed July 1, 2017 advisory pure premium rate of $2.02, which is 16.5% lower than the corresponding industry average filed pure premium rate of $2.42 as of January 1, 2017 and 7.8% less than the Insurance Commissioner’s approved average January 1, 2017 advisory pure premium rate of $2.19. The primary factors driving the proposed decrease include downward medical loss development in part driven by continued acceleration in claim settlement, decreasing indemnity claim frequency and lower than projected loss adjustment expenses. Despite these positive trends, Mr. Bellusci cautioned that high levels of lien filings, continued growth in cumulative injury claims and rising medical severities could erode the impacts of these trends and warrant continued monitoring.
At the conclusion of the hearing, the hearing officer announced that the record will officially close at 5:00 PM, on May 4, 2017. The Insurance Commissioner is expected to issue a decision with respect to the WCIRB’s filing within 30 days of the close of the record. The WCIRB will post the decision to its website once it is issued by the Insurance Commissioner and will release a WCIRB Wire story.
An Excel version of exhibits referenced in Section B, Computation of Indicated Average Pure Premium Rate for Policies Incepting between July 1, 2017 and December 31, 2017 of the WCIRB’s July 1, 2017 Pure Premium Rate Filing has also been released. You may view the document in the Filings section of the WCIRB website or at the link below: