WCIRB MAKES FILING PROPOSING 22.8% INCREASE IN PURE PREMIUM RATES
EFFECTIVE JANUARY 1, 2010
August 18, 2009
Today, the WCIRB submitted a pure premium rate filing to the California Insurance
Commissioner recommending a 22.8% increase in advisory pure premium rates ("claims
cost benchmark") with respect to new and renewal policies as of the first anniversary
rating date of a risk on or after January 1, 2010.
The recommended increase in pure premium rates is based on the WCIRB's analysis
of insurer experience valued as of March 31, 2009 and the WCIRB's analysis of anticipated
cost increases stemming from two recent Workers' Compensation Appeals Board decisions
(Ogilvie v. City and County of San Francisco and Almaraz v. Environmental
Recovery Services/Guzman v. Milpitas Unified School District). In the filing,
the WCIRB advised the Commissioner that the proposed increase is potentially subject
to amendment based on the WCIRB's review of accident year experience valued as of
June 30, 2009 and any legislative, regulatory or judicial actions taken subsequent
to the date of this filing.
If the full 22.8% increase is approved by the Insurance Commissioner, the January
1, 2010 pure premium rates will still be, on average, 55% lower than the approved
pure premium rates in effect
July 1, 2003.
The filing also contains proposed amendments to the California Workers' Compensation
Uniform Statistical Reporting Plan-1995 (USRP) and the California Workers' Compensation
Experience Rating Plan-1995 (ERP). Some of the amendments are proposed
effective in 2010 and others are proposed effective in 2011. Many of the proposed
amendments to the ERP reflect the recommendations of the Experience Rating Task
Force created at the behest of the Insurance Commissioner.