Today, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) Governing Committee voted to authorize the WCIRB to submit a September 1, 2023 Pure Premium Rate Filing to the California Insurance Commissioner. The filing will propose advisory pure premium rates that will be on average 0.3 percent above the average approved September 1, 2022 advisory pure premium rates. The proposed advisory pure premium rates reflect loss and loss adjustment experience (LAE) as of December 31, 2022.
In his presentation to the Governing Committee, WCIRB Executive Vice President and Deputy Chief Actuary Sean Cooper noted that on average, the proposed September 1, 2023 advisory pure premium rates are lower than the advisory pure premium rates proposed by the WCIRB in the September 1, 2022 Pure Premium Rate Filing. According to Mr. Cooper, the more notable drivers of the change were lower-than-projected loss emergence for the 2022 accident year, modestly lower loss development on earlier years, a reduced LAE provision and a slightly lower claim frequency projection.
The WCIRB expects to submit its September 1, 2023 Pure Premium Rate Filing to the California Department of Insurance (CDI) by the end of April. 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.