Today’s issue of WorkCompRecap features the announcement from the California WCIRB that its Governing Committee has authorized the submission of a September 1, 2022 Pure Premium Rate Filing to the state’s Insurance Commissioner.
The WCIRB noted that the filing will propose advisory pure premium rates on average 7.6% above the average approved September 2021 advisory rates. The proposed rates, in addition to reflecting the loss experience as of December 31, 2021 excluding COVID-19 claims, also reflect an average 0.5% provision for the projected cost of COVID-19 claims to be incurred on policies incepting between September 2022 and August 2023. The WCIRB also noted that the average of the proposed September 1, 2022 advisory pure premium rates are fairly consistent with the average of the advisory pure premium rates it proposed in the September 2021 Pure Premium Rate Filing. In effect, the increases in loss development and claim frequency over the last year were largely offset by increased estimates of wage inflation.