California Workers’ Comp Committee OKs 7.6% Pure Premium Filing
The governing committee of the Workers’ Compensation Insurance Rating Bureau of California authorized the WCIRB to submit a Sept. 1, 2022 pure premium rate filing to the California Insurance Commissioner that is on average 7.6% above the average approved Sept. 1, 2021 advisory pure premium rates.
The proposed Sept. 1, 2022 advisory pure premium rates, in addition to reflecting the loss experience as of Dec. 31, 2021, excluding COVID-19 claims, also reflect an average 0.5% provision for the projected cost of COVID-19 claims to be incurred on policies incepting between Sept. 1, 2022 and Aug, 31, 2023.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci noted that the average of the proposed Sept. 1, 2022 advisory pure premium rates are fairly consistent with the average of the advisory pure premium rates proposed by the WCIRB in the Sept. 1, 2021 pure premium rate filing.
According to Bellusci, the increases in loss development and claim frequency over the last year were largely offset by increased estimates of wage inflation.
The WCIRB expects to submit its filing to the California Department of Insurance during the week of April 25. The CDI will schedule a public hearing to consider the filing.