Wide Ranging Opposition To COVID-19 Surcharge

Public testimony delivered during Insurance Commissioner Ricardo Lara’s workers’ comp rate hearing and subsequently in written comments show wide-ranging opposition to the insurance industry’s proposed six-tier COVID-19 surcharge. The California Bureau filed a surcharge for all employers ranging from 1 cent to 24 cents depending upon classification. The Bureau inserted class into one of 6 … Read More »

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COVID-19 Driven Recession Distorts Second Quarter Experience

California’s workers’ comp actuaries are recommending against using the industry’s second-quarter experience in the rate-making process for 2021 advisory pure premium rates due to the gross distortions in the data from the Wuhan China sourced COVID-19 pandemic. Most notable were anomalies in claim reporting, reserving, and resolution of claims that are now running counter to … Read More »

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Deep Cut In 2020 Pure Premium Rates

In his first workers’ comp advisory pure premium rate decision, Insurance Commissioner Ricardo Lara sided with both employers and organized labor. He approved a 9% rate cut for 2020 — far deeper than what insurance carriers through the Bureau sought. The Workers’ Compensation Insurance Rating Bureau’s recommendation was for a 5.4% reduction. The Bureau is … Read More »

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Commissioner Lara Faces First Test On Workers’ Comp Rates

California Insurance Commissioner Ricardo Lara is in the midst of his first review of the industry’s annual workers’ comp rate filing.  He is facing a tough decision: go with the conservative recommendation of the insurance industry or the deeper cut recommended by the independent actuary representing employers and organized labor. The former could have employers … Read More »

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Here’s the 2020 Rate Filing Numbers

The Workers’ Compensation Insurance Rating Bureau’s governing carriers rejected the public members call for an 8% rate cut and approved filing for a lesser 5.7% cut in California’s 2020 pure premium rates. The choice comes against a backdrop of record profits for California’s workers’ comp carriers. The vote was 8 to 3. All carrier members voted … Read More »

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Baker Reforms To Beget Another Rate Cut For 2020

The governing committee members’ of the Workers’ Compensation Insurance Rating Bureau will meet this morning to consider 2020 rates. The result will likely be a recommendation for a low- to mid-single-digit cut to the workers’ comp pure premium rates for 2020 policies. Driving the cut are more of the same trends that have seen rates … Read More »

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Could 2018 Be the Turning Point For Workers’ Comp?

California’s workers’ comp results are still showing the positive impact of the Baker SB 863 reforms, but the industry’s emerging 2018 data reveals a puzzling uptick in indemnity severity. That uptick, combined with the perennial questions about when medical cost inflation is going to ramp up, has some insurance carrier actuaries asking if the industry’s … Read More »

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Public Self-Insurers Face Closer Scrutiny

The Department of Industrial Relations Office of Self-Insurance Plans (OSIP) is moving to close one of the remaining gaps in the Baker SB 863 workers’ comp reform package. It is taking a closer look at public entities that self-insure their workers’ comp liabilities. OSIP is rolling out proposed regulations to enhance its ability to oversee … Read More »

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