California Insurance Commissioner Dave Jones has issued a revised advisory pure premium rate, reducing rates by 16.5%.
The revised rate lowers the benchmark to $2.02 per $100 of payroll for workers compensation insurance. As of Jan. 1, the average pure premium rate was $2.42. The revised rate is effective July 1, the California Department of Insurance said Monday in a statement.
The midyear pure premium advisory rate reduction is based on data that shows workers comp insurers’ medical costs were lower in 2016, the department said in a statement.
“A reduction in the pure premium rate reflects a reduction in the cost to insurers of providing workers' compensation insurance, which benefits California's business economy if insurers lower their pricing,” Mr. Jones said in the statement.
Maine’s workers compensation lost costs are set to decrease 4.3%, effective immediately, according to a statement Friday from Eric Cioppa, superintendent of the Maine Bureau of Insurance.