California Workers’ Comp Committee Votes for Lower Mid-Year Filing
The governing committee of the California Workers’ Compensation Insurance Rating Bureau voted unanimously on Wednesday to authorize the WCIRB to submit a mid-year pure premium rate reduction filing to the California Department of Insurance
The filing will propose a July 1 average advisory pure premium rate of $2.30 per $100 of payroll, which is 10.4 percent lower than the corresponding industry average filed pure premium rate of $2.57 as of Jan. 1 and 5.0 percent less than the insurance commissioner’s approved average Jan. 1 advisory pure premium rate of $2.42.
The governing committee’s decision was based on the WCIRB actuarial committee’s analysis of insurer loss and loss adjustment experience as of Dec. 31, 2015, which was reviewed at public meetings of the actuarial committee held on March 22 and April 5.
Cumulative trauma claims continue to increase, particularly in the Los Angeles region, according to the committee.
Despite these upward pressures on system costs, the governing committee believed that lower frequency, lower medical severity and favorable loss development warranted a reduction in the industry average pure premium rate as of July 1.
The WCIRB anticipates submitting its filing to the CDI by April 11.
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