California Workers Comp Rates
The California Workers Comp Rates will be staying low for 2010. The Workers Compensation Insurance Rating Bureau of California (WCIRB) recently released the December 31, 2009 Summary of Insurer Experience. One of the most interesting statistics was the Average Insurer Rate per $100 of Payroll.
The average of $2.35 per $100 of Payroll was the lowest rate for employers since 1999 which was before the recent California insurance crisis. The highest amount during the last 15 years was $6.45 per $100 at the end of 2003.
These rates are the advisory rates. Any Workers Compensation insurance carrier can vary these rates greatly if the WCIRB approves the deviation. The WCIRB almost always approves the insurance companies’ rate deviations. The main requirement is that the rates are filed timely with the WCIRB and the California Insurance Commissioner.
The WCIRB has recommended increases of over 20% over the last few years. The California Insurance Commissioner has decided to not approve the recommended increases. Is this bad for the California Workers Compensation insurance environment? I think it depends on who you ask as to what will be the answer.
I will cover that next time.
©J&L Risk Management Inc Copyright Notice