The rate increase was rejected by the commissioner in July but yet some took one anyways – why is this that different?
Yes, the carriers will have to stay within approved filed rates or adjusted slightly upwardly filed new rates for January but with the swing of debit/credits they can apply to their rates they still can have a significant rate increase.
I am still seeing many companies with well over $80,000+ in available premium savings staying with the over charging insurance agents and carriers while laying off employee’s and this I just do not understand.
I work for a small carrier and I’m going to have to file with absolutely no credible data since the WCIRB loss costs are inadmissible. Going to be a long fight to get a good rate increase approved. It makes the small carriers play with deficient manual rates while the big carriers get to file adequate rates.
Nero fiddles again. Another purely political decision by the Poisoner. I fear Calif WC is heading for another meltdown.
This is the type of activity that makes carriers leave markets, which reduces competition and ultimately raises prices.
It looks like the short term mentality of politicians will prevail again… to everyone’s detriment.
The rate increase was rejected by the commissioner in July but yet some took one anyways – why is this that different?
Yes, the carriers will have to stay within approved filed rates or adjusted slightly upwardly filed new rates for January but with the swing of debit/credits they can apply to their rates they still can have a significant rate increase.
I am still seeing many companies with well over $80,000+ in available premium savings staying with the over charging insurance agents and carriers while laying off employee’s and this I just do not understand.
Andrea Luoni
RateCraft
I work for a small carrier and I’m going to have to file with absolutely no credible data since the WCIRB loss costs are inadmissible. Going to be a long fight to get a good rate increase approved. It makes the small carriers play with deficient manual rates while the big carriers get to file adequate rates.
While the premium rate change was not approved, changes to the expected loss rates and to the method of calculating the primary/excess split during the experience mod calculation were approved. While the AVERAGE mod is not supposed to change, some variance is expected. We’ve blogged about this at http://workcompedgeblog.com/2009/11/12/california-workers-compensation-2010-split-formula-change-mod/