7.6% comp rate hike recommended for California employers
The Governing Committee for the Workers’ Compensation Insurance Rating Bureau on Wednesday voted to recommend that California Insurance Commissioner Ricardo Lara increase the advisory pure premium rate by about 7.6%, effective Sept. 1.
The recommended rate, in addition to reflecting insurer experience through the end of 2021, excluding COVID-19 claims, includes an average 0.5% provision for the projected cost of COVID-19 claims to be incurred on policies after the start of September, the WCIRB said in a statement. The difference appears to amount to about a penny per $100 of payroll.
The WCIRB Governing Committee approved an advisory pure premium rate of $1.55 per $100 of payroll, excluding COVID-19 claims. The addition of the COVID-19 factor should bring the rate to about $1.56 when the WCIRB submits its filing later this month.
Before approving the rate recommendation, members of the Governing Committee rejected a slight rate cut recommended by the actuary for public members of the panel. Actuary Mark Priven, who consults with members of the Governing Committee who don’t represent insurance companies, recommended a rate of $1.42, a bit more than a 2% cut from the current rate.
WorkCompCentral is a sister publication of Business Insurance. More stories here.
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