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August 24, 2022

California: Insurance commissioner confirms workers’ compensation rates should be adjusted for September 1, 2022 Premium Rate Filing

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The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) September 1, 2022 Pure Premium Rate Filing was submitted to the California Department of Insurance (CDI) on April 29, 2022, proposing rates that averaged $1.56 per $100 of payroll. This reflected a 7.6% increase from last year’s approved rates.

Following a public hearing held by the CDI regarding the rates, California Insurance Commissioner Ricardo Lara issued a decision on July 15, 2022 indicating that the approved advisory pure premium rate of $1.45 should remain unchanged. However, on July 29, 2022, the commissioner confirmed the advisory pure premium rates for individual classifications should be adjusted based on the classification relativities adopted in the commissioner’s June 28, 2022 order on the September 1, 2022 regulatory filing. 

The recommended rate is based on cost data from California insurance companies and is only advisory, as State Legislature has not given the commissioner rate setting authority over workers’ compensation rates

What does this mean for CA-based companies?

Some companies may see an increase in their workers’ compensation pure premium rates if they are in one of the class codes where carriers are seeing an uptick in losses.

To download the electronic files containing the approved September 1, 2022 advisory pure premium rates from WCIRB, click here.

If you have any questions, please reach out to your Marsh McLennan Agency representative for more info.