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April 19, 2024
Workers Compensation Bill 2024: One percent of employee’s salary to contribute to workers’ compensation fund in Kenya.

April 15, 2024
Colorado Worker Shows Head Injury Happened as a Consequence of a Knock on the Head at Work

April 4, 2024
Callfornia Division of Workers' Compensation Pharmacy and Therapeutics Committee Meeting Scheduled for April 17, 2024

April 3, 2024
California Division of Workers' Compensation Posts Adjustments to Official Medical Fee Schedule (DMEPOS)

The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has suggested a 10.1 percent increase in work comp premium rates effective July 1. The advice to raise the rates comes on the heels of fourth quarter data for the industry showing unexpectedly high losses.

According to Dave Bellusci, WCIRB’s chief actuary, “deterioration in loss development on the 2000 and prior accident years has been particularly severe over the last year. It is disconcerting that, in only a few months subsequent to their approval, the 2002 pure premium rates are already 10 percentage points inadequate. Furthermore, based on this latest data, we have no evidence to suggest that this loss development trend will moderate in the short term.”

Nicole Mahrt, public affairs director for the American Insurance Association's western region, told adjustercom.com, "This mid-term adjustment in the pure premium rate shows that as more experience from passed policies are evaluated the claims costs are rising faster than estimated."

The increase is not related to the passage of AB 749—the workers’ compensation bill that increased benefits. Insurers can expect the impact of AB 749 to show up in the regular annual filing scheduled for January 1, 2003.

The California workers’ compensation market has been shaky for several years due to an open-rating system introduced in 1995. In the competitive arena, many carriers dropped their price for workers’ comp lower than they could afford. Higher medical costs increased the amount of the average claim making the situation even more difficult.

Because of the open-rating system, WCIRB’s suggestion is just that—a suggestion. The Department of Insurance will hold a hearing on the recommendation to consider approving it.