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Commissioner Issues Decision on July 1, 2018 Pure Premium Rate Filing

Today, the California Insurance Commissioner issued a Decision regarding the WCIRB’s July 1, 2018 Pure Premium Rate Filing (Filing) which was submitted to the California Department of Insurance (CDI) on April 9, 2018. In the Filing, the WCIRB proposed July 1, 2018 advisory pure premium rates that averaged $1.80 per $100 of payroll, which was 7.2% less than the average of the approved January 1, 2018 advisory pure premium rates. A public hearing regarding the Filing was held on May 2, 2018.

In his Decision, the Commissioner approved advisory pure premium rates that average $1.74 per $100 of payroll effective July 1, 2018. The approved advisory pure premium rates are 10.3% less than the average of the approved January 1, 2018 advisory pure premium rates and 21.6% lower than the industry average filed pure premium rate as of January 1, 2018. The approved July 1, 2018 advisory pure premium rates differed from the WCIRB's proposed advisory pure premium rates in that the pure premium rate projection reflected in the CDI Decision incorporated in part incurred loss development to project ultimate medical losses and a medical severity trend projection of 1% annually in lieu of the 3% reflected in the WCIRB Filing.

The Insurance Commissioner’s Decision and electronic files containing the approved July 1, 2018 advisory pure premium rates may be downloaded from the Filings and Plans section of the WCIRB website (wcirb.com).

The “WCRATE” file with the abbreviated class wording and the approved July 1, 2018 advisory pure premium rates will also be available for download in the Filings and Plans section within the next few days.

Related Information

Insurance Commissioner’s Decision
Bulletin Regarding the Insurance Commissioner's Decision (WCIRB Bulletin 2018-09)
July 1, 2018 Pure Premium Rate Filing
Advisory Pure Premium Rates:  XLS File | Delimited File

May 29, 2018