Today’s issue of WorkCompRecap features the California WCIRB’s recent announcement that its Governing Committee voted to authorize the submission of a mid-year pure premium rate filing, which will propose a a July 1, 2017 average advisory pure premium rate that is 7.8% lower than the January 1 rate.
The WCIRB cited lower medical loss and allocated loss adjustment expense development, continued acceleration in claim settlement, and recent indemnity claim frequency decreases as motivating factors in the decrease. The Actuarial Committee of WCIRB did however note that cumulative trauma claims continue to increase, especially in the Los Angeles region, and medical severities are beginning to increase after several years of more moderate severity trends driven by SB 863. Despite those upward pressures, the Governing Committee believed the other favorable developments cited made the reduction warranted.
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