The WCIRB submits advisory pure premium rates to the California Department of Insurance (CDI) for approval. Insurer rates are usually derived from the advisory pure premium rates developed by the WCIRB and approved by the Insurance Commissioner. Advisory pure premium rates, expressed as a rate per $100 of payroll, are based upon loss and payroll data submitted to the WCIRB by all insurance companies. These rates reflect the amount of losses an insurer can expect to pay in benefits due to workplace injuries as well as the cost for adjusting and settling workers' compensation claims. Pure premium rates do not account for administrative and other overhead costs that an insurer will incur, and, consequently, an insurer's rates are typically higher than the pure premium rates.
Advisory pure premium rates are available in the Filings and Plans section.
Pure Premium Rates vs. Insurer Rates
Insurer Rates
Include:
Pure Premium Rates
Include:
Claims/Losses
Claims/Losses
Loss Adjustment Expenses
Loss Adjustment Expenses
Commissions
Acquisitions Expenses
General Expenses
Taxes
Dividends
Profit
* Advisory pure premium rates are amended at least annually. For the current pure premium rates, visit the Filings and Plans section.
