San Francisco, CA – The WCIRB recently submitted its January 1, 2017 Pure Premium Rate Filing (Filing) to the California Department of Insurance (CDI) proposing advisory pure premium rates that average $2.26 per $100 of payroll, which is 11.0% less than the corresponding industry average filed pure premium rate of $2.54 as of July 1, 2016, and 2.6% less than the average approved July 1, 2016 advisory pure premium rate of $2.32. This marks the fourth consecutive filing that the WCIRB has recommended a decrease in pure premium rates, totaling -18.6% when compared to the average of the approved January 1, 2015 advisory pure premium rates.
The proposed further reduction in the advisory pure premium rate level for January 1, 2017 follows a 5.0% reduction approved by the California Insurance Commissioner effective July 1, 2016. The primary drivers of the reduction include:
- Medical losses on 2014 and prior accident years continue to develop favorably
- Medical claim costs on 2015 accidents are emerging at lower than projected levels
- Indemnity claims are settling at quicker rates than in the recent past
- Forecasts of future wage level growth in California have increased
The Filing and all related documents, including a detailed executive summary highlighting the Filing’s major components, are available on the Regulatory and Pure Premium Rate Filings page of the WCIRB website.
The CDI will schedule a public hearing to consider the Filing. Once the Notice of Proposed Action and Notice of Public Hearing is issued, the WCIRB will post a copy on the Regulatory and Pure Premium Rate Filings page.
Source: CA WCIRB