California ratings agency to propose 5.7% comp rate cutPosted On: Aug. 8, 2019 9:45 AM CST
The Workers’ Compensation Insurance Rating Bureau of California will propose a 5.7% average reduction in pure premium rates for workers compensation insurers in 2020, the agency announced Wednesday.
If adopted, this would be the ninth consecutive pure premium rate decrease since 2015, with reductions totaling approximately 44% since, the Oakland, California-based agency said in a statement.
Continued downward loss development, acceleration in claim settlements, sharply declining pharmaceutical costs and continued decline in the number of liens being filed are among the reasons for the reduction over 2019 rates, Dave Bellusci, WCIRB’s executive vice president and chief actuary, said in a presentation to the rating agency’s governing committee Wednesday, according to the statement.
Despite these the downward trends, Mr. Bellusci cautioned that loss adjustment expenses remain high and that medical and indemnity average claim severities are beginning to rise at levels closer to their historical norms, according to the statement.
The agency expects to submit its filing to the California Department of Insurance later this month, according to the statement.