California insurance head advises comp rate reduction of 16.5%Posted On: May. 23, 2017 3:46 PM CST
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.