Earlier today, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) testified at a California Department of Insurance (CDI) public hearing regarding the WCIRB’s January 1, 2020 Pure Premium Rate Filing, which was submitted to the CDI on August 20, 2019.
WCIRB Executive Vice President and Chief Actuary Dave Bellusci, along with President and CEO Bill Mudge, presented the actuarial basis for the WCIRB’s average proposed January 1, 2020 advisory pure premium rate of $1.58, which is 5.4 percent less than the average of the current January 1, 2019 advisory pure premium rates.
Mr. Bellusci and Mr. Mudge discussed the key components of the WCIRB’s filing, which represented the ninth consecutive proposed advisory pure premium rate decrease totaling approximately 45 percent as compared to the January 1, 2015 pure premium rates. In particular, the WCIRB discussed continued downward loss development, the continued sharp reduction in pharmaceutical costs and the projected rate of growth in medical costs.
A PDF version of the WCIRB’s presentation is available in the Filings and Plans section of the WCIRB website and at the following link:
At the conclusion of the hearing, the hearing officer announced that the record will close at 5:00 PM on Wednesday, October 16, 2019. The Insurance Commissioner is expected to issue a decision with respect to the WCIRB’s filing within 30 days of the close of the record. The WCIRB will post the decision to its website once it is issued by the Insurance Commissioner and will release a WCIRB Wire story. (Sign up to receive WCIRB Wire stories in your inbox on the Subscribe to WCIRB Email Alerts page.)