One of the WCIRB's responsibilities is measuring the cost of providing workers’ compensation benefits to injured workers. To do that, the WCIRB performs a number of functions, including collecting payroll and loss data on every workers' compensation insurance policy, collecting aggregate financial data from insurers, examining workers’ compensation policy documents, inspecting insured businesses, and performing test audits of insurance company audits.
Once the data is collected, actuaries from the WCIRB produce advisory pure premium rates for recommendation to the Insurance Commissioner. These rates become part of a WCIRB Pure Premium Rate Filing and are subject to public hearing and comment. See Proposed Changes to Regulations. Pure premium rates may be used by insurance companies as a benchmark for developing their own premium rates (insurer rates) for specific types of businesses.
The WCIRB also collects workers' compensation insurance coverage information to assist injured workers, insurers and others identify which insurer wrote a workers' compensation policy for a specific employer.
Loss and payroll data collected by the WCIRB is used to calculate experience modifications for eligible employers. The WCIRB annually publishes approximately 120,000 experience modifications. For more information about experience rating, see the California's Experience Rating System module.
In addition to rates and experience modifications, the WCIRB develops and maintains the Standard Classification System. This series of approximately 500 classifications is used to group together businesses with similar operations. This grouping of businesses into classifications is necessary for the collection of data and development of pure premium rates.
For more information about the classification system, see The Standard Classification System section.
As provided in the California Insurance Code, one of the requirements for an insurer writing workers’ compensation insurance in California is membership in a licensed rating organization. The WCIRB is California’s licensed rating organization for workers’ compensation. As a member of the WCIRB, insurers are required to fund the WCIRB’s operations.
For a list of WCIRB members, view the WCIRB Membership List.
The WCIRB Governing Committee sets policy and oversees management of the affairs of the WCIRB, including the actions of all other committees.
The Governing Committee is comprised of twelve members:
The Insurance Commissioner, or his designated representative, is entitled to attend all meetings of the Governing Committee.
The Actuarial Committee advises the Governing Committee with respect to pure premium rates, rating methodologies, and other matters.
The WCIRB Actuarial Committee is comprised of up to nine persons who are appointed by the President of the WCIRB and an actuary representing the public members of the Governing Committee. In addition, actuaries representing the California Department of Insurance may attend and participate in Actuarial Committee meetings.
The Classification and Rating Committee's responsibilities include reviewing proposed changes with respect to the Insurance Commissioner's workers' compensation insurance regulations and administrative matters of a technical nature.
The Classification and Rating Committee is comprised of seven members: