California WCIRB To Make July 1, 2012 Filing

San Francisco, CA (WorkersCompensation.com) - The WCIRB Governing Committee recently met to review the Actuarial Committee analysis of December 31, 2011 experience and determine whether the WCIRB should submit a mid-year pure premium rate filing.

The indicated July 1, 2012 average pure premium rate based on the methodologies recommended by the Actuarial Committee is $2.51 per $100 of payroll. This indication is 7.7% above the average pure premium rate of $2.33 proposed by the WCIRB in the January 1, 2012 Advisory Pure Premium Rate Filing.

The continued deterioration in the indication since the last filing was largely due to increases in loss development on the 2010 accident year, increasing allocated loss adjustment costs, and lower forecasts of wage growth in the still-sluggish California economy.

The Governing Committee expressed concern about the ongoing escalation in several key system cost drivers and, as a result, directed the WCIRB to submit a July 1, 2012 advisory pure premium rate filing reflecting the indicated pure premium rate of $2.51 per $100 of payroll.

The WCIRB anticipates submitting the filing by April 13, 2012. The filing and all related documents will be available in the Regulatory Filings section of the WCIRB website and the WCIRB will issue a WCIRB Wire Story once the filing has been submitted to the California Department of Insurance.

Documents related to the Governing Committee meeting, including the agenda and materials displayed or distributed at the meeting, are available in the About the WCIRB section of the website.

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