The Workers’ Compensation Insurance Rating Bureau of California has submitted its Jan. 1, 2021 pure premium rate filing to the California Department of Insurance, proposing advisory pure premium rates that are on average 2.6% above the average approved Jan. 1, 2020 advisory pure premium rates.
The average of the proposed January 1, 2021 advisory pure premium rates is $1.56 per $100 of payroll.
Absent the estimated impact of COVID-19 claims on 2021 policies, the filing reflects a modest decrease (1.3%) in advisory pure premium rates. In addition to projecting the cost of COVID-19 claims to be incurred on 2021 policies, the filing also reflects the impact of the pandemic-related economic slowdown on future wage growth, claim frequency and claim severity.
The move follows a vote by the WCIRB governing committee earlier this month.
Once the CDI schedules a public hearing to consider the filing, a Notice of proposed action and notice of public hearing will be issued and posted in the filings and plans section of the WCIRB website.
Related:
- California Workers’ Comp Committee OKs 2021 Pure Premium Filing
- Report: Sharp Drop in California Workers’ Comp Premiums Expected from COVID-19
- California Workers’ Comp Bureau Lowers Mid-Range Estimate of COVID Costs by $10B
Topics California Workers' Compensation
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