Workers’ Comp Rates on the Rise — Again?
The Workers’ Compensation Insurance Rating Bureau (WCIRB) has determined that six months after a 37% increase in the advisory Pure Premium Rate another 9.1% should be added.
The Workers’ Comp Executive broke this story.
9.1% Increase In Pure Premium Rates
Employers in California are going to be very unhappy with the mid-year workers’ comp rate filing the Workers’ Compensation Insurance Rating Bureau is about to make. It will soon file for a 9.1% average increase. This is over and above the 37% rate increase that Insurance Commissioner Dave Jones approved for January 2012. The filing will come in at an average rate of $2.51 per $100 of payroll compared to the $2.33 for last year.
The amount is 7.7% above what the Bureau filed last year. It says the increase represents deterioration in the system that is largely tied to the 2010 accident year. The actual increase to rates being used by carriers, however, is likely to be lower since carriers have been steadily increasing their filed rates. Stay tuned for additional coverage.
Filed by Brad Cain in San Francisco
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