Pure Premium Rate Filing Webinar Kept It Simple + Nice Graphics
The WCIRB (Workers Comp Insurance Rating Bureau) recently hosted a webinar on the upcoming pure premium rate filing changes effective September 1, 2022. The WCIRB always produces easy-to-understand slides.
The whole premium charging process is contained in one chart. See the below chart that keeps the info nice and simple. I miss the in-person conferences the WCIRB used to have at least once per year. The link to download the 38 slides and the presentation is at the bottom of this article. This may be a California-specific example. The same process applies to almost all of the other states. For more on the X-Mod formula check out this article.
If you start to wonder why the data used by the WCIRB seems to be somewhat old, please see this article on why the data will be two years old.

Why Were The Class Codes Changed?
The main reasons were due to:
- New and evolving industries in California
- Declining industries
- Lack of homogeneity in a certain classification code – businesses in the class code were too different
- Ambiguity in the class code definition
The employers that had class code changes with the pure premium rate filing (with class code):
- Electronic Instrument Manufacturers – 8874
- Biomedical Research Labs – 4512
- Tunneling – 6251
- Tile Stores – 8059
- Theatres – 9156
- Carnivals or Circuses – 9185
- Field Crops – 0171
Take out your policy and see if any of those codes. If so, you may want to download the presentation and slides. When class code definitions are changed, your next policy may look very different.
See the above chart – the first step in the premium charging process is the classification code payroll figures. Make sure that the class codes describe your business. The changes may occur in your next policy and subsequent premium audit.
If you wish to check out the complete set of charts and the live presentation, you can find them at this link. The presenters were Dave Bellusci, Harrison Bairey, and Esther Li.
From the WCIRB:
Learn what changes to expect with approved pure premium rates that are effective September 1, 2022. While the California Insurance Commissioner approved an average September 1, 2022, pure premium rate equal to the September 1, 2021 average pure premium rate, changes in individual classification pure premium rates were adopted. Hear from WCIRB actuaries as they explain the key drivers of some of the significant changes in individual classification pure premium rates, including classification definition changes, new payroll limitations, increased telecommuting, and cumulative trauma claims.
Also Read: General Liability Insurance Premium Audits Definition