View this article online: https://www.insurancejournal.com/news/west/2013/09/05/304194.htm
A workers’ compensation rate hike looks to be in the works for California.
The Workers’ Compensation Insurance Rating Bureau Actuarial Committee met Wednesday and reviewed the June 30 experience, which showed “significant adverse medical loss development and increasing indemnity claim frequency” relative to the March 31 experience presented to WCIRB’s Governing Committee on Aug. 7, according to a WCIRB spokesman.
Because of the deterioration the Governing Committee will reconsider the average advisory pure premium rate indicated based on March 31 experience, according to WCIRB spokesman Jack Hannan.
“A final number is not known, but the original indication based on March 31, 2013 data was an average pure premium rate that is 3.4 percent above the current industry average pure premium,” Hannan said. “With this latest evaluation, the number will be higher by serveral percent. We’ll know more next week.”
In August the Governing Committee voted unanimously to file an advisory pure premium rate for 2014 of $2.62 per $100 of payroll, 3.4 percent above the industry average filed pure premium rate of $2.53 per $100 of payroll as of July 1.