After completing its analysis of accident year experience valued as of June 30, 2000, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) announced it will amend its pure premium rate filing.
The new proposal is for a 10.1 percent increase to average pure premium rates, rather than the 5.5 percent submitted to the Insurance Commissioner on July 31 this year. At that time, the WCIRB had noted its concern regarding the volatility of recent loss development patterns and indicated that it might have to adjust its pure premium rate filing following examination of the additional data.
“The projected loss ratio based on June 30, 2000, experience is significantly higher than the loss ratio reflected in the filing,” WCIRB Chief Actuary Dave Bellusci said in a statement. “The increase is due primarily to sharply increasing loss development in the second quarter, particularly for the 1998 and 1999 accident years.”
The WCIRB will adjust the proposed experience rating eligibility requirements as a result of the amended pure premium rate level, but no changes will be made to classification relativities. The amended filing will be submitted to the Insurance Commissioner on Sept.
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