The Workers’ Compensation Insurance Rating Bureau of California’s governing committee voted on Wednesday to authorize the WCIRB to submit a Jan. 1, 2020 advisory pure premium rate filing to the California Insurance Commissioner that will be on average 5.7% below the average approved Jan. 1, 2019 advisory pure premium rates.
If adopted, this would be the ninth consecutive pure premium rate decrease since 2015 totaling roughly 44 percent.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci, in a presentation to the governing committee, noted that the indicated Jan. 1, 2020 average advisory pure premium rate change reflects continued downward loss development, acceleration in claim settlements, sharply declining pharmaceutical costs and continued decline in the number of liens being filed.
Despite these favorable trends, Bellusci also cautioned that loss adjustment expenses remain high and that medical and indemnity average claim severities are beginning to rise at levels closer to their historical norms.
The WCIRB expects to submit its Jan. 1, 2020 advisory pure premium rate filing to the California Department of Insurance around the third week of August. The CDI will schedule a public hearing to consider the filing.
Was this article valuable?
Here are more articles you may enjoy.