The Workers’ Compensation Insurance Rating Bureau of California’s governing committee has decided not to submit a July 1, 2020 rate.
The committee met this week to review the WCIRB actuarial committee’s analysis of Dec. 31, 2019 California workers’ comp experience.
The indicated average July 1, 2020 advisory pure premium rate based on Dec. 31, 2019 experience and the methodologies recommended by the actuarial committee is $1.53 per $100 of payroll, which is $0.01 above the average approved Jan. 1, 2020 advisory pure premium rate of $1.52, according to the WCIRB.
Given the minor indicated change and the high level of uncertainty of the potential effects of the COVID-19 pandemic related the impending economic downturn on payrolls and claims costs, the potential slowdown in claims activity due to the statewide stay-at-home order, and emerging claims arising from COVID-19 diagnoses, the committee unanimously decided not to submit a July 1, 2020 filing.
The committee also agreed that the potential impacts of the COVID-19 pandemic and payroll and claim cost level should be considered as part of the WCIRB’s January 1, 2021 pure premium rate filing, which is anticipated to be submitted to the insurance commissioner in August.
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