Oakland, CA – The WCIRB recently testified at a California Department of Insurance (CDI) public hearing regarding the WCIRB’s January 1, 2016 Pure Premium Rate Filing which was submitted to the CDI on August 19, 2015.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci, along with President and CEO Bill Mudge, presented the actuarial basis for the proposed advisory pure premium rates that average $2.45 per $100 of payroll, which is 7.8% less than the corresponding industry average filed pure premium rate of $2.66 as of July 1, 2015, and 0.8% less than the average approved July 1, 2015 advisory pure premium rate of $2.47.
According to testimony offered by Mr. Bellusci, the primary factors driving the proposed decrease are favorable medical loss development and lower than projected indemnity and medical claim severity. Mr. Bellusci cautioned that abnormally high claim frequency in the Los Angeles area and increases in loss adjustment expenses are of concern, as well as uncertainty regarding optimistic wage growth forecasts in light of recent global economic turbulence.
Source: CA WCIRB