The Workers’ Compensation Insurance Rating Bureau testified at a California Department of Insurance public hearing today regarding the bureau’s July 1 pure premium rate filing, which was submitted to the CDI on April 11, the WCIRB announced.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci and with President and CEO Bill Mudge presented the actuarial basis for the WCIRB’s average proposed July 1 advisory pure premium rate of $2.02, which is 16.5 percent lower than the corresponding industry average filed pure premium rate of $2.42 as of Jan. 1 2017 and 7.8 percent less than the insurance commissioner’s approved average Jan. 1 advisory pure premium rate of $2.19.
The primary factors driving the proposed decrease include downward medical loss development in part driven by continued acceleration in claim settlement, decreasing indemnity claim frequency and lower than projected loss adjustment expenses, the WCIRB said.
Despite these positive trends, Bellusci cautioned that high levels of lien filings, continued growth in cumulative injury claims and rising medical severities could erode the impacts of these trends and warrant continued monitoring.
The insurance commissioner is expected to issue a decision with respect to the WCIRB’s filing within 30 days of the close of the record.
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