Rating Agency Calls for 7.2% Workers’ Comp Rate Cut

| posted in Blog

Thanks to reforms enacted in 2014, California’s workers’ comp rating agency is recommending that the average benchmark rate be cut by 7.2% for policies effective July 1 and onward. The filing made by the Workers’ Compensation Insurance Rating Bureau is for the state’s pure premium rates, which are essentially the base rates to cover expected costs of claims and claims-adjusting expenses across all worker class codes. The rates are advisory only and insurers can price their policies as they wish, so there are no guarantees that any particular employer will see a rate decrease when their policy renews. The rate…
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Insurance Commissioner Okays Benchmark Rate Decrease for California Employers

| posted in Blog

California’s insurance commissioner has approved a recommendation to reduce average baseline rates on workers’ compensation policies by 7.8% at the mid-year mark. The mid-year reduction to the baseline rate is largely the result of reforms that were introduced in 2013 that have sped up the settlement process for claims (including many long-term claims), in addition to reducing medical costs. Also, because of these reforms the cost of adjusting workers’ comp claims in California has dropped over the past few years. Insurance carriers use the benchmark rate – also known as the pure premium rate – as a starting point for…
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