The WCIRB Actuarial Committee met in San Francisco today to review insurer experience valued as of December 31, 2010. The Committee’s analysis continues to show significant pure premium rate inadequacy. Pure premium rates have not been adjusted since January 1, 2009.
A final indicated change is not yet available, but the Actuarial Committee’s review of December 31, 2010 experience shows a deterioration of more than ten percentage points since the WCIRB’s January 1, 2011, filing which recommended an increase in pure premium rates of +27.7%. The deterioration in experience is primarily attributable to (a) continued adverse loss development on the 2009 accident year, (b) high emerging costs on the 2010 accident year driven by an increase in claim frequency, (c) less optimistic forecasts of statewide wage level growth, and (d) increased levels of allocated loss adjustment expense that are likely, in part, attributable to the 2009 Ogilvie and Almaraz/Guzman decisions.
The WCIRB Governing Committee meets on April 6, 2011 to consider the Actuarial Committee’s analysis and will make a decision at that time whether to authorize the WCIRB to make a July 1, 2011 pure premium rate filing.
Source: CA WCIRB