San Francisco, CA – On April 2, 2014, the WCIRB Governing Committee met in San Francisco to consider a potential July 1, 2014 Pure Premium Rate Filing. In his prepared remarks for the Committee, WCIRB Executive Vice President and Chief Actuary, David Bellusci discussed the recent analysis of December 31, 2013 statewide premium and loss information conducted by the Actuarial Committee at its March 31, 2014 meeting.
In his presentation to the Governing Committee, Mr. Bellusci noted that the year-end 2013 experience is a mix of both positive and negative results. Among the positive developments are stable indemnity loss development, an acceleration in the rate at which claims are settling, continued moderation in medical and indemnity severity trends, and lower than previously forecast accident year 2013 losses.
Mr. Bellusci did caution that there continue to be areas of concern for the Actuarial Committee. These include the continued deterioration of medical loss development, increasing claim frequency-especially in the Los Angeles basin region, and the higher than projected emergence of post-SB 863 allocated loss adjustment expenses.
In summary, Mr. Bellusci noted “in the context of a potential July 1, 2014 pure premium rate filing, this mix of positive and negative trends largely offsets each other. The July 1, 2014 indicated average pure premium rate of $2.74 is almost identical to the WCIRB’s January 1, 2014 indicated average pure premium rate of $2.75.”
After considering the Actuarial Committee’s analysis and the presentation made by Mr. Bellusci, the insurer and public members of the Governing Committee unanimously voted to forego a rate filing for July 1, 2014. The Committee will review updated insurer experience later this year when it convenes in August to consider the January 1, 2015 Pure Premium Rate Filing.
Source: CA WCIRB