California rating bureau eyes increase in workers compensation pure premium advisory ratesPosted On: Aug. 8, 2012 12:00 AM CST
SAN FRANCISCO—The Workers' Compensation Insurance Rating Bureau of California is considering a 7.6% increase in workers compensation pure premium advisory rates next year, just months after the state approved a midyear workers comp rate hike for California employers.
The bureau's actuarial committee recommended an average premium advisory rate of $2.68 per $100 of payroll for 2013 during its Aug. 2 meeting, according to a summary of the meeting posted online. The indication was based on a review of WCIRB's comp claim losses and administrative costs as of March 31.
The projected 2013 rate compares with a pure premium rate of $2.49 per $100 of payroll for the second half of 2012, which was approved by California Insurance Commissioner Dave Jones in June.
In its summary, WCIRB said the rate indication reflects increasing comp claim losses, increased claim frequency and an expected decrease in payroll growth amid a "sluggish" economic recovery, among other factors.
The actuarial committee's recommendation will be presented to WCIRB's governing committee on Aug. 15.