California Insurance Commissioner Dave Jones adopted an advisory average pure premium rate of $2.70 per $100 of employer payroll for workers’ compensation rates effective Jan. 1, 2014, which is lower than that proposed by the Workers’ Compensation Insurance Rating Bureau.
WCIRB’s proposed advisory average rate was $2.75 per $100 of payroll. WCIRB’s proposed advisory average pure premium rate is 8.7 percent above the industry’s average filed rates as of July 1. Jones’ adopted pure premium rate is 6.7 percent above the industry’s average filed rates as of July 1.
Commissioner Jones, WCIRB and the public members’ actuary all agree that the overall impact of workers’ comp reform law Senate Bill 863 continues to result in savings for the workers’ comp system.
The California Department of Insurance continues to observe that medical and indemnity losses are outpacing wage growth and consequently, the average advisory pure premium will increase in 2014, according to a statement from Jones’ office.
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