Today, the California Insurance Commissioner issued a Decision regarding the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) September 1, 2021 Pure Premium Rate Filing (Filing), which was submitted to the California Department of Insurance (CDI) on April 29, 2021. The WCIRB proposed advisory pure premium rates in its filing that average $1.50 per $100 of payroll, which reflected a 2.7 percent increase from the average of the January 1, 2021 approved advisory pure premium rates. The CDI held a public hearing regarding the Filing on June 7, 2021. The CDI’s official hearing record closed on July 6, 2021.
In his Decision, dated July 21, 2021, the Insurance Commissioner approved advisory pure premium rates that average $1.41 per $100 of payroll. The average approved September 1, 2021 advisory pure premium rate is 3.4 percent below the average approved January 1, 2021 advisory pure premium rate. The approved September 1, 2021 advisory pure premium rates differ from the WCIRB’s proposed pure premium rates, which averaged $1.50 per $100 of payroll. The difference between the WCIRB proposed and CDI approved advisory pure premium rates is due to somewhat different assumptions regarding medical loss development, future indemnity claim frequency and future claim severity trends.
Insurance Commissioner's Decision
Bulletin 2021-14 WCIRB September 1, 2021 Pure Premium Rate Filing Decision
September 1, 2021 Pure Premium Rate Filing (April 29, 2021)
September 1, 2021 Advisory Pure Premium Rates: XLS File | Delimited File
WCRATE (classification wording and pure premium rates): Delimited File | Product Documentation