California Workers’ Comp Committee Votes for 2.7% Higher Pure Premium Filing
The governing committee of the Workers’ Compensation Insurance Rating Bureau of California has voted to authorize the WCIRB to submit a Sept. 1, 2021 pure premium rate filing to the California Insurance Commissioner that are on average 2.7% above the average approved Jan. 1, 2021 advisory pure premium rates.
Included in the proposed increase is a 1.4% overall estimated cost impact of recent changes adopted by the Division of Workers’ Compensation to the Medical-Legal Fee Schedule and the Evaluation and Management Section of the Official Medical Fee Schedule.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci noted that to reflect the unique impact of the COVID-19 pandemic on exposure and losses, the WCIRB excluded all claims arising from a COVID-19 diagnosis from the analysis, refined projection methodologies to adjust for distortions caused by the pandemic and largely relied upon-pre-pandemic experience to project cost levels for the period the proposed advisory pure premium rates will apply.
The WCIRB expects to submit its filing to the CDI around April 26. The CDI will schedule a public hearing to consider the filing.