California WCIRB Proposes Premium 7.8% Below 2015 Average
The Workers’ Compensation Insurance Rating Bureau has submitted its Jan. 1, 2016 pure premium rate filing to the California Department of Insurance proposing advisory pure premium rates that average $2.45 per $100 of payroll.
That WCIRB figure is 7.8 percent less than the corresponding industry average filed pure premium rate of $2.66 as of July 1, 2015, and 0.8 percent less than the average approved July 1, 2015 advisory pure premium rate of $2.47.
The proposed further reduction in the advisory pure premium rate level for Jan. 1, 2016 follows a 10.2 percent reduction approved by the California Insurance Commissioner effective July 1, 2015. The primary drivers of the reduction include:
- Medical losses continue to develop favorably;
- Recent severity growth continues to emerge below projections;
- Increases in projected wage growth in California due to economic expansion;
The Department of Insurance will schedule a public hearing to consider the filing.
Related:
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