California Insurance Commissioner Steve Poizner on Friday announced a 5 percent pure premium increase for workers' compensation, less than a third of the increase proposed by the state Workers Compensation Insurance Rating Bureau.
The commissioner said his decision to opt for a lower increase was due, in part, to the inaccuracy of the past predictions for the market.
"Last year, experts predicted that loss adjustment expenses would increase dramatically. They did not," said Commissioner Poizner. "This year, experts have predicted accelerating increases in medical costs. Given the accuracy of past forecasts, I will wait for clear and compelling data confirming such increases before significantly increasing the Workers Compensation Claims Cost Benchmark."
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