Earlier today, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) Governing Committee (Committee) met to review the WCIRB Actuarial Committee’s analysis of December 31, 2019 California workers’ compensation experience. The indicated average July 1, 2020 advisory pure premium rate based on December 31, 2019 experience and the methodologies recommended by the Actuarial Committee is $1.53 per $100 of payroll, which is $0.01 above the average approved January 1, 2020 advisory pure premium rate of $1.52.

Given the minor indicated change in advisory pure premium rates and the exceptionally high level of uncertainty of the potential effects of the COVID-19 pandemic related to the impacts of the impending economic downturn on payrolls and claims costs, the potential slowdown in claims activity resulting from the statewide stay-at-home order and emerging claims arising from COVID-19 diagnoses, the Committee unanimously decided not to submit a July 1, 2020 filing. The Committee also agreed that the potential impacts of the COVID-19 pandemic and payroll and claim cost level should be considered as part of the WCIRB’s January 1, 2021 pure premium rate filing, which is anticipated to be submitted to the Insurance Commissioner in August.

The Actuarial Committee’s analysis of December 31, 2019 experience is publicly available to all stakeholders as are the documents from today’s Committee meeting, including the agenda and materials presented at the meeting, on the Committee Documents page of the WCIRB website, wcirb.com.

Related Information

Actuarial Committee Agenda and Presentations