Insurance Commissioner Dave Jones Announces Workers' Compensation Insurance Claims Cost Benchmark Approval
News: 2011 Press Release
Insurance Commissioner Dave Jones today issued the following statement regarding the Workers' Compensation Insurance Rating Bureau's (WCIRB) advisory pure premium rate filing:
"Today, I am pleased to announce that the advisory rate filing proposed by the California Department of Insurance has been approved," said Insurance Commissioner Jones. "The advisory claims cost benchmark has been set at $2.30 per $100 of employer payroll."
The advisory pure premium rate measures the cost of workers' compensation claims and the expenses to adjust those claims over the next policy year for workers' compensation insurance. It appears that current rate filings from insurers have slightly exceeded their cost estimates. The WCIRB filing provides greater information on current insurance company rates and pricing than previous filings. Insurers are charging employers insurance premiums close to the estimated cost of benefits and adjusting expenses.
However, insurers filed much higher manual rates, the rates that could be charged to employers, and are substantially discounting those manual rates. This has helped to keep workers' compensation insurance prices generally stable despite increasing costs, particularly for medical care.
The decision and order can be found by selecting this link.
The pure premium rates to be used by the WCIRB rate will become effective January 1, 2012.
The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $310 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at www.insurance.ca.gov. Non-media inquiries should be directed to the Consumer Hotline at 800.927.4357. Telecommunications Devices for the Deaf (TDD), please dial 800.482.4833.