San Francisco, CA – At its April 6, 2011 meeting, the WCIRB Governing Committee directed the WCIRB to submit to the California Department of Insurance (CDI) an informational analysis of insurer experience as of December 31, 2010 in lieu of a mid-year advisory pure premium rate filing. The WCIRB was advised by the CDI that its submission could be considered an advisory pure premium rate filing. In light of this information, the WCIRB withdrew its submission and scheduled a meeting of the Governing Committee to consider further action.
Earlier today, the WCIRB Governing Committee reconsidered the issue, but opted against a mid-year filing. In deciding not to make a filing, the Committee noted that a decision on a mid-year filing would likely not be available prior to the WCIRB’s upcoming January 1, 2012 Advisory Pure Premium Rate Filing in mid-August and two pending filings with the CDI has the potential to create a great deal of confusion.
The Committee also renewed its concern about the confusion that currently exists in the marketplace concerning advisory pure premium rates and their impact on insurer rates. WCIRB President Robert Mike informed the Committee that WCIRB staff will be meeting with the CDI in the coming weeks to discuss ways of presenting information about advisory pure premium rates and system cost drivers in a way that lessens this confusion.
The WCIRB will make its annual January 1, 2012 Advisory Pure Premium Rate Filing in mid-August.