WCIRB WIRE ALERT • APRIL 11, 2016: Today, the WCIRB submitted a July 1, 2016 Pure Premium Rate Filing to the California Department of Insurance (CDI) proposing advisory pure premium rates that average $2.30 per $100 of payroll effective July 1, 2016. The average proposed advisory pure premium rate is 10.4% lower than the corresponding industry average filed pure premium rate of $2.57 as of January 1, 2016 and 5.0% less than the Insurance Commissioner’s approved average January 1, 2016 advisory pure premium rate of $2.42.
In the Executive Summary of the Filing, the WCIRB highlights the reduction in frequency, lower medical severity and favorable loss development as primary drivers of the proposed decrease, but cautioned that higher loss adjustment expenses, a sharp rise in lien filings and increases in the number of cumulative injury claims are continuing to exert upward pressure on system costs.
The Filing and all related documents are available in the Publications and Filings section 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 its website and issue a Wire Story.