California to cut benchmark comp ratePosted On: Jul. 21, 2021 2:15 PM CST
California is cutting the benchmark rate for workers compensation insurance to $1.41 per $100 of payroll, effective Sept. 1.
The five-cent reduction is intended to help businesses continue to recover from the COVID-19 pandemic, Commissioner Ricardo Lara’s office said Wednesday.
The change drops the rate below the average advisory pure premium rate recommended by the Workers Compensation Insurance Rating Bureau in its filing with the California Department of Insurance.
The newly approved average advisory pure premium rate approved by the Commissioner is about 24.2% lower than the industry-filed average pure premium rate of $1.86 as of Jan. 1, 2021, according to the commissioner’s office.
This marks the 11th consecutive reduction to the average advisory pure premium rate benchmark since January 2015.