Earlier today, the WCIRB testified at a California Department of Insurance (CDI) public hearing regarding the WCIRB’s July 1, 2018 Pure Premium Rate Filing which was submitted to the CDI on April 9, 2018.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci, along with President and CEO Bill Mudge, presented the actuarial basis for the WCIRB’s average proposed July 1, 2018 advisory pure premium rate of $1.80, which is 7.2% less than the Insurance Commissioner’s approved average January 1, 2018 advisory pure premium rate of $1.94 and 19.0% lower than the corresponding industry average filed pure premium rate of $2.22 as of January 1, 2018.
Mr. Bellusci and Mr. Mudge discussed the key drivers of the WCIRB’s seventh consecutive proposed advisory pure premium rate decrease which included favorable loss development largely driven by significant increases in claim settlement rates, a sharp decline in lien filings following the implementation of Senate Bill No. 1160 and anticipated savings resulting from the new drug formulary.
At the conclusion of the hearing, the hearing officer announced that the record will officially close at 5:00 PM, on May 3, 2018. 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.