Workers’ Comp Rates Likely to Increase

The Workers’ Compensation Insurance Rating Bureau’s staff of actuaries will be presenting their recommendations for a September 1st, 2021, California pure premium rate filing to the Bureau’s governing committee members later this morning. The actual rate recommendation was unknown as of deadline because the staff was still adjusting for the economic impact of the COVID-19 … Read More »

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Copy Service Fee Schedule Update In The Works

Division of Workers’ Compensation (DWC) officials say an updated copy service fee schedule is currently under review and should be out for public comment in a matter of weeks. The increase in the costs to employers for copy services will be the first since the fee schedule was adopted in 2015 as part of the … Read More »

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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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Pressure Builds to Eliminate COVID-19 Surcharge From 2021 Rates

Insurance Commissioner Ricardo Lara got an earful from the insurance industry saying rates need to go up by 2.6% next year to pay for COVID-19 claims costs – the first increase in California workers’ comp rates since 2015. The increase comes from a controversial proposal by the Workers’ Compensation Insurance Rating Bureau to surcharge all … 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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Sharp Drop In Public Agency Claims During COVID-19 Crisis

The statewide stay-at-home orders that California has been operating under since March is having a dramatic impact on workers’ comp claims for the state’s self-insured school districts and municipalities. Actuaries for these self-insured public entities say that claims from public school workers were down 84% in April compared to historical norms, while municipalities saw decreases … 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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