Workers comp premium rate hike of 2.8% filed in CaliforniaPosted On: Jan. 18, 2012 12:00 AM CST
SACRAMENTO—The top 100 insurers writing workers compensation insurance in California filed pure premium rates showing an increase averaging 2.8% for 2012, Insurance Commissioner Dave Jones announced Tuesday.
The top 100 companies account for 96.7% of California's workers comp insurance market, the commissioner said.
Last year, California adopted a new pure premium benchmark for insurers filing rates with its insurance department. But insurers are free to file rates near the benchmark, or they may choose to deviate.
“This past year we improved the pure premium benchmark process by establishing a benchmark based on what is happening in the market,” Mr. Jones said in a statement. “In November, I announced the approved advisory pure premium benchmark that would be effective in 2012. A significant number of insurers, representing a significant share of the overall market, are using the approved advisory pure premium rates.”
Pure premium is the part of premiums that covers losses, but does not include loading for expenses such as taxes and commissions.