Today, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) Governing Committee voted to authorize the WCIRB to submit a September 1, 2022 Pure Premium Rate Filing to the California Insurance Commissioner. The filing will propose advisory pure premium rates that will be on average 7.6 percent above the average approved September 1, 2021 advisory pure premium rates. The proposed September 1, 2022 advisory pure premium rates, in addition to reflecting the loss experience as of December 31, 2021 excluding COVID-19 claims, also reflect an average 0.5 percent provision for the projected cost of COVID-19 claims to be incurred on policies incepting between September 1, 2022 and August 31, 2023.
In his presentation to the Governing Committee, WCIRB Executive Vice President and Chief Actuary Dave Bellusci noted that the average of the proposed September 1, 2022 advisory pure premium rates are fairly consistent with the average of the advisory pure premium rates proposed by the WCIRB in the September 1, 2021 Pure Premium Rate Filing. Mr. Bellusci noted that, in effect, the increases in loss development and claim frequency over the last year were largely offset by increased estimates of wage inflation.
The WCIRB expects to submit its September 1, 2022 Pure Premium Rate Filing to the California Department of Insurance (CDI) during the week of April 25, 2022. The CDI will schedule a public hearing to consider the filing, and once the Notice of Proposed Action and Notice of Public Hearing is issued, the WCIRB will post a copy in the Filings and Plans section of the WCIRB website.