California Workers’ Comp Committee Votes for Higher Pure Premium Filing

The governing committee of the Workers’ Compensation Insurance Rating Bureau today voted to authorize the WCIRB to submit a Jan. 1, 2018 Advisory Pure Premium Rate Filing to the California Insurance Commissioner with rates that average $2.01 per $100 of payroll.

That is 14.3 percent less than the industry average filed pure premium rate of $2.34 as of July 1.

However, the rate is 0.1 percent more than the average approved July 1 advisory pure premium rate of $2.00. The modest proposed increase follows five consecutive advisory pure premium rate decreases since early 2015 that have totaled more than 27 percent.

The WCIRB staff noted that the indicated January 1, 2018 average advisory pure premium rate, while slightly above the average approved July 1, 2017 pure premium rate, is more than 7 percent below the average Jan. 1, 2017 advisory pure premium rate.

Some of the factors contributing to this reduction over the last year include:

• Medical losses have continued to develop downward
• Claim settlement rates have continued to accelerate
• Increasing loss adjustment expense trends have moderated
• Increased wage growth is being forecast

The WCIRB will submit its Jan. 1, 2018 filing to the California Department of Insurance on or around Aug. 18.

Related:

• Nearly 60% of Payments in California Comp in 2016 Were for Medical Services
• California Commissioner Lowers Workers’ Comp Pure Premium
• California Comp Bureau Testifies on Lower Rates at Pure Premium Hearing
• California Worker’s Comp Governing Committee Votes for Lower Mid-Year Filing
• California Workers’ Comp Board Submits Amended Rate Filing to Department of Insurance
• California Workers’ Comp Bureau Lowers Rate Filing with Eye on Bills

Topics California Workers' Compensation