California Insurance Commissioner Ricardo Lara today issued a decreased pure premium rate for workers’ compensation insurance, lowering the annual benchmark rate from $1.41 to $1.38 per $100 of payroll— representing a 2.1% percent decrease from last year.
The advisory rate is set to go into effect on Sept. 1.
Factors in the commissioner’s decision include the continuing decrease in the number of medical services associated with each workers’ comp claim, and a continuing decline in the percentage of claims with permanent disability benefits.
The Workers’ Compensation Insurance Rating Bureau of California‘s Sept. 1 pure premium rate filing includes COVID-19 experience in the portion of the projection that is developed from accident year 2023. Beginning with accident year 2023, COVID-19 experience will no longer be excluded from consideration when setting rates.
Lara’s decision results in an average advisory pure premium rate that is below the $1.42 average rate proposed by the WCIRB in its filing with the CDI.
Topics California Workers' Compensation
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