WCIRB Issues Decision Regarding 2016 Pure Premium Rate Filing
The California Insurance Commissioner has issued a decision regarding the WCIRB’s January 1, 2016 Pure Premium Rate Filing (Filing) which was submitted to the California Department of Insurance on August 19, 2015. A public hearing regarding the filing was held on September 22, 2015.
In his decision, the Commissioner approved advisory pure premium rates that average $2.42 per $100 of payroll. The approved pure premium rates are, on average, 9.0% less than the industry average filed pure premium rate as of July 1, 2015 of $2.66 and 2.0% less than the average of the approved July 1, 2015 advisory pure premium rates of $2.47. The approved advisory pure premium rates are effective January 1, 2016 for new and renewal policies.
CALPASC’s Risk Management Director Bruce Wick said the following in response:
“We appreciate Insurance Commissioner Dave Jones and his actuarial staff doing a thorough evaluation of the information regarding the average WC advisory rate to be effective January 1, 2016. The Commissioner provided a 2% additional decrease, on top of the midterm 10.2% decrease effective July 1, 2015. The decisions shows that loss trends continue to drop. There is an combined decrease of 12.2% from the January 1, 2015 advisory rates to the January 1, 2016 rates. The reforms of SB 863 continue to lower loss results in WC in California. There are even more areas to reform, including provider fraud.”
The Insurance Commissioner’s Decision and electronic files containing the approved January 1, 2016 pure premium rates may be downloaded from the Publications and Filings section of the WCIRB website (www.wcirb.com).