WCIRB Submits Evaluation for SB899, Proposed Reduction in Pure Premium Rates

At Thursday’s California Department of Insurance (CDI) public hearing, the Workers’ Compensation Insurance Rating Bureau (WCIRB) submitted its July 1, 2004 regulatory filing reflecting the WCIRB’s analysis of the provisions of Senate Bill 899 (SB 899) and the impact of those provisions on advisory pure premium rates.

In its filing, the WCIRB estimates that the provisions of SB 899 that are currently effective will reduce projected statewide benefit costs by approximately 15%, or $3.0 billion, and loss adjustment expenses by approximately 9%, or $0.3 billion.

Based on this projected reduction in benefit costs, the WCIRB proposed advisory pure premium rates that are approximately 13% to 15% less than the Jan. 1, 2004 pure premium rates proposed by the WCIRB in its Nov. 3, 2003 filing letter. These rates are 2.9% less than the Jan. 1, 2004 approved pure premium rates.