California comp insurers advised to reduce rates to reflect decreasing costs

The California Department of Insurance said Thursday that the pure premium rate will reduce 17.1% to $1.94 per $100 of payroll for workers compensation insurance, effective Jan. 1, 2018. 

The decision is based on an advisory pure premium rate that is slightly below the $1.96 average rate recommended by the California Workers Compensation Insurance Rating Bureau in its filing, the department said in a statement.

“The continued decreases in costs to insurers should be passed along to employers through lower rates,” Dave Jones, California Insurance Commissioner, said in the statement. “Workers’ compensation reform legislation should require that system cost savings be passed onto employers in the form of lower rates, the law does not require this currently.”