Today, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) submitted its January 1, 2020 Pure Premium Rate Filing to the California Department of Insurance (CDI), proposing advisory pure premium rates that are, on average, 5.4 percent less than the average of the current January 1, 2019 advisory pure premium rates. The average of the January 1, 2020 advisory pure premium rates, including the impact of the payroll limitation previously adopted by the Commissioner for five classifications, is $1.58 per $100 of payroll. If adopted, this would be the ninth consecutive pure premium rate decrease since 2015 totaling approximately 45 percent.
The proposed average decrease in advisory pure premium rates reflects continued downward loss development, acceleration in claim settlements, sharply declining pharmaceutical costs and a further decline in the number of liens being filed. In the filing, the WCIRB also noted that factors such as increases in cumulative trauma claims, rising claim severities and continued high levels of allocated loss adjustment expenses are moderating the pure premium rate declines and warrant continued monitoring.
View the filing at the following link:
Once the CDI schedules a public hearing to consider the filing, a Notice of Proposed Action and Notice of Public Hearing will be issued and posted in the Filings and Plans section of the WCIRB website. All related filing documents are available on the WCIRB January 1, 2020 Regulatory and Pure Premium Rate Filings page.
The WCIRB has scheduled a webinar to discuss the highlights of the January 1, 2020 Pure Premium Rate Filing as well as the new schedule for WCIRB filings beginning in 2021. To register, use the link below.
The WCIRB’s January 1, 2020 Pure Premium Rate Filing and Future Changes in WCIRB Filing Schedule
Wednesday, August 28, 2019, 10:00 – 11:00 AM PT
Register for the webinar>