CA WCIRB Rate Increase = 12% ouch!
When I was invited to the NCCI 2026 AIS last month, one of the most shocking developments in any of the sessions was the 12% CA WCIRB rate increase. Why was there such a sharp one-year increase in California?
Andrea Coleman, President and CEO of WCIRB, explained that CTS (used to be the acronym for Carpal Tunnel Syndrome) tallied the most effect on the two sharp increases. One thing that Andrea mentioned in her presentation was that the rate increases are Advisory Rate increases. Workers Comp insurance carriers are allowed to set rates as they see fit.
One of those little Worker Comp secrets comes from Loss Costs in almost any state. The LCMs, or Loss Cost Multipliers, give Workers Comp carriers much leeway in setting rates in a certain state. For example, the wide variation from carrier to carrier sometimes spans from a 30% decrease to a 75% increase, for example.
Why was there such a sharp one-year increase in California? The reason was covered well in this one-hour video What’s Driving Workers’ Comp Costs: Inside the September 1, 2026, Pure Premium Rate Filing. I decided to wait until today to publish an article on the May 28, 2026, video.
The WCIRB’s video on CTS will occur today at 1 PM Eastern – 10 AM West Coast Time – cumulative trauma syndrome – the main reason for the 2025 and 2026 rate increases.
From the CA WCIRB Rate Increase Video –
Annually, the Workers’ Compensation Rating Bureau of California (WCIRB) submits a Pure Premium Rate Filing to the California Department of Insurance (CDI) reflecting emerging claims experience, economic conditions, and actuarial judgment. In this webinar, WCIRB actuaries walk through the September 1, 2026, Pure Premium Rate Filing and explain the key considerations behind the proposed rate change.
View to better understand the assumptions and analysis underlying the Filing, including:
- Key drivers behind the rise in cumulative trauma (CT) claims and their impact on frequency, severity, and loss ratio trends
- Insights into what is driving medical service costs
- An overview of loss adjustment expense projections and their role in the Filing
