Skip to content

Finally, California Workers Comp. Rate Decrease

The Workers’ Compensation Insurance Rating Bureau of California on Thursday said it will call for a pure premium rate decrease of 1.8% under a new loss cost calculation method.

If adopted by California’s Department of Insurance, the suggested rate decrease would take effect Jan. 1, 2010.

The new rates the WCIRB is proposing for about 500 industry classifications are projected to average $2.33 per $100 of payroll. That is 1.8% less than the corresponding average of insurer-filed pure premium rates as of July 1, 2011, it said.

But although the WCIRB is recommending a pure premium rate reduction, it also said in a statement that its proposed rates reflect continued insurance cost increases since California adopted reforms from 2002 through 2004.