Today, the WCIRB testified at a California Department of Insurance (CDI) public hearing regarding the WCIRB’s January 1, 2018 Pure Premium Rate Filing, which was originally submitted to the CDI on August 18, 2017 and then amended on September 8, 2017 based on the WCIRB's evaluation of June 30, 2017 loss experience. The amended filing proposed advisory pure premium rates to be effective January 1, 2018 that average $1.96 per $100 of payroll. These amended proposed pure premium rates are on average 2% less than the average of the approved July 1, 2017 advisory pure premium rates of $2.00.
During the CDI public hearing, Executive Vice President and Chief Actuary Dave Bellusci, along with President and CEO Bill Mudge and Vice President and Actuary Tony Milano, presented the actuarial basis for the WCIRB’s proposed advisory pure premium rates. The WCIRB's testimony included a presentation that highlighted the key drivers of the indicated decrease including lower than projected loss development and continued acceleration in indemnity claim settlement. The WCIRB also advised that these positive trends, which have significantly contributed to advisory pure premium rate decreases of the last several years totalling almost 30% since 2015, are now showing signs of moderating. In addition, the WCIRB identified several areas of concern including continued growth in cumulative injury claims and increasing average claim severities.
The Commissioner is expected to issue a decision with respect to the WCIRB’s January 1, 2018 filing within 30 days. The WCIRB will post the decision to its website once it is issued by the Commissioner and will release a WCIRB Wire story.