California Insurance Commissioner Harry Low recently approved a 10.1 percent average increase in workers’ compensation pure premium rates. The increase, which was proposed by the Workers’ Compensation Insurance Rating Bureau (WCIRB), will go into effect on July 1 for new and renewal policies. The decision was in response to a filing submitted by the WCIRB on March 28, which recommended a mid-year increase as the result of continued deterioration in loss development. A hearing was held by the California Department of Insurance (CDI) on May 14 to consider the WCIRB’s filing.
The CDI has advised the WCIRB that those insurers who choose to change their base rates to reflect the July 1 change in pure premium rates may request an early effective date pursuant to California Insurance Code Section 11735(a). Following submission of a complete filing, insurers may utilize those rates rather than waiting 30 days to implement the new base rates. Additionally, the CDI will accept electronic filings using the State Electronic Rate Filing Form (SERFF) system. Information on SERFF submissions will be available on www.insurance.ca.gov in the “Regulating Insurers” section, under the “Rate Filings” link.
Topics Trends California Pricing Trends
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