Earlier today, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) testified at a California Department of Insurance (CDI) public hearing regarding the WCIRB’s January 1, 2021 Pure Premium Rate Filing, which was submitted to the CDI on August 26, 2020 and amended on September 15, 2020.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci, along with President and CEO Bill Mudge and Tony Milano, Vice President of Actuarial Services, presented the actuarial basis for the WCIRB’s average proposed January 1, 2021 advisory pure premium rate of $1.56 per $100 of payroll.
Mr. Bellusci, Mr. Mudge and Mr. Milano discussed the key components of the WCIRB’s filing, which, including the 4 percent estimated impact of COVID-19 claim costs on 2021 policies, reflected a 2.6 percent increase from the January 1, 2020 advisory pure premium rates. In particular, the WCIRB discussed the moderating pre-pandemic trends in loss development and claim settlement, the impact of the economic slowdown on claim frequency and the projection of COVID-19 claim costs.
A PDF version of the WCIRB’s presentation is available in the Filings and Plans section of the WCIRB website and at the following link:
The CDI hearing officer announced that the record will temporarily be kept open so additional requested information can be provided. The Commissioner will issue a notice as to when the record will close.
The Insurance Commissioner is expected to issue a decision with respect to the WCIRB’s filing within 30 days of the close of the record. The WCIRB will post the decision to its website once it is issued by the Insurance Commissioner and will release a WCIRB Wire story. (Sign up to receive WCIRB Wire stories in your inbox on the Subscribe to WCIRB Email Alerts page.)