"Savings for workers' compensation insurers continue and all of those savings ought to be shared with employers," Commissioner Jones said in a press release. (Photo: Shutterstock)
Insurance Commissioner Dave Jones adopted and issued a revised advisory pure premium rate, lowering the benchmark to $1.63 per $100 of payroll for workers' compensation insurance, effective Jan. 1, 2019. Commissioner Jones has reduced the advisory pure premium rate by about 42% since January 2015.
The indicated advisory pure premium rate level of $1.63 approved by the Commissioner is about 23.5% lower than the industry filed average advisory pure premium rate of $2.13 as of July 1, 2018.
Related: Calif. insurance commissioner lowers workers' comp rates
|Pass the savings
Commissioner Jones' decision results in an advisory pure premium rate that is below the $1.70 average rate recommended by the Workers' Compensation Insurance Rating Bureau (WCIRB) in its filing. The WCIRB's pure premium advisory rate filing demonstrated continued decreases in California's workers' compensation insurance market. The pure premium advisory rate reduction is based on insurers' cost data through June 30 of this year.
"Savings for workers' compensation insurers continue and all of those savings ought to be shared with employers," Commissioner Jones said in a press release. "Cost savings in the workers' compensation system have helped insurers and employers deserve to share in the cost savings through lower premiums. I renew my call on workers' compensation insurers to pass along savings to employers."
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Denny Jacob
Denny Jacob is an associate editor for NU PropertyCasualty360. Contact him at [email protected].
