On March 27, the Workers’ Compensation Insurance Rating Bureau (WCIRB) Governing Committee met to consider the recommendation of the WCIRB Actuarial Committee with respect to filing for a change in the pure premium rate level effective July 1, 2004.
The Committee reviewed recent medical and indemnity loss experience valued as of Dec. 31, 2003. The updated experience produces projections that are consistent with the projections that underlie the WCIRB’s Jan. 1, 2004 recommended pure premium rate decrease of between 2.9 percent and 5.3 percent. In lieu of the 2.9 percent to 5.3 percent decrease recommended by the WCIRB, the insurance commissioner approved a decrease in pure premium rates of 14.9 percent effective Jan. 1, 2004.
Inasmuch as a review of the Dec. 31, 2003 experience indicated no significant change in the indicated inadequacy of the approved pure premium rates relative to the rates proposed by the WCIRB in its Jan. 1, 2004 rate filing, the Governing Committee adopted the recommendation of the Actuarial Committee that no July 1, 2004 pure premium rate filing be made. However, both committees recognized that if workers’ compensation legislation affecting benefit costs is enacted, a rate filing might be necessary.
Nevertheless, it should be noted that based on the methodology used in the WCIRB’s Jan. 1, 2004 filing, the WCIRB continues to believe the approved Jan. 1, 2004 pure premium rates are inadequate by between 8 percent and 12 percent.
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