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SACRAMENTO – California Insurance Commissioner Dave Jones has adopted and issued a revised advisory pure premium rate, lowering the benchmark to $1.94 per $100 of payroll for workers' compensation insurance, effective Jan. 1, 2018.
This is 17.1 percent less than the average pure premium rate of $2.34 California insurers filed as of July 1, 2017.
Commissioner Jones' decision results in an advisory pure premium rate that is slightly below the $1.96 average rate recommended by the Workers' Compensation Insurance Rating Bureau, or WCIRB, in its filing.
Jones issued the advisory pure premium rate three weeks after a public hearing and careful review of the testimony and evidence submitted. His adoption is only advisory, as the commissioner has no rate authority over workers' compensation insurers.
"The continued decreases in costs to insurers should be passed along to employers through lower rates," said Insurance Commissioner Dave Jones. "The WCIRB has once again recommended a reduction in the advisory pure premium rate, which will ultimately benefit California's business economy if insurers lower their pricing."
The WCIRB's pure premium advisory rate filing demonstrated continued decreases in costs in California's workers' compensation insurance market.
The pure premium advisory rate reduction is based on insurers' cost data through June 30 of this year. Insurers' net costs in the workers' compensation system continue to decline as a result of SB 863, SB 1160, and AB 1244 enacted by the Legislature and Gov. Brown.
The WCIRB notes continued favorable medical loss development including acceleration in claim settlement.
The WCIRB will evaluate workers' compensation insurance costs again in the summer and fall of next year when it files its pure premium rate benchmark recommendation with the Department of Insurance.
That filing will provide an opportunity to assess whether medical costs continue to be lower and what changes, if any, there are in other costs in the system.
This is 17.1 percent less than the average pure premium rate of $2.34 California insurers filed as of July 1, 2017.
Commissioner Jones' decision results in an advisory pure premium rate that is slightly below the $1.96 average rate recommended by the Workers' Compensation Insurance Rating Bureau, or WCIRB, in its filing.
Jones issued the advisory pure premium rate three weeks after a public hearing and careful review of the testimony and evidence submitted. His adoption is only advisory, as the commissioner has no rate authority over workers' compensation insurers.
"The continued decreases in costs to insurers should be passed along to employers through lower rates," said Insurance Commissioner Dave Jones. "The WCIRB has once again recommended a reduction in the advisory pure premium rate, which will ultimately benefit California's business economy if insurers lower their pricing."
The WCIRB's pure premium advisory rate filing demonstrated continued decreases in costs in California's workers' compensation insurance market.
The pure premium advisory rate reduction is based on insurers' cost data through June 30 of this year. Insurers' net costs in the workers' compensation system continue to decline as a result of SB 863, SB 1160, and AB 1244 enacted by the Legislature and Gov. Brown.
The WCIRB notes continued favorable medical loss development including acceleration in claim settlement.
The WCIRB will evaluate workers' compensation insurance costs again in the summer and fall of next year when it files its pure premium rate benchmark recommendation with the Department of Insurance.
That filing will provide an opportunity to assess whether medical costs continue to be lower and what changes, if any, there are in other costs in the system.
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- Written by: Editor
WASHINGTON, DC – On Thursday Representatives Mike Thompson (CA-05), Ileana Ros-Lehtinen (FL-27), Jared Huffman (CA-01), Alcee Hastings (FL-20), Debbie Wasserman-Shultz (FL-23), Charlie Crist (FL-13), Stephanie Murphy (FL-07), and Peter King (NY-2) introduced H.R. 4148, the Small Business Disaster Relief Act, bipartisan legislation to improve the Small Business Administration’s (SBA) disaster relief efforts.
This legislation would give SBA and the U.S. Department of Agriculture’s Farm Service Agency more flexibility in setting the terms and conditions of disaster loans to businesses vital to recovery such as debris removal, gasoline supply, and telecommunications.
It would also authorize SBA to make grants to small business development centers to provide technical assistance to small businesses after a disaster, and encourage SBA to use local district offices to expedite the processing of disaster loan applications.
“The fires that have torn through Northern California have burned 200 businesses to the ground, devastating not only business owners and employees, but the people who count on their services,” Rep. Thompson said. “Today, we’re putting forth the bipartisan Small Business Disaster Relief Act to improve the way the Small Business Administration delivers vital relief aid to businesses that have been impacted by wildfires, hurricanes, and other natural disasters. By helping local businesses restart critical services in disaster-struck areas, we can speed up the overall recovery and rebuilding efforts in these communities.”
“South Florida small businesses are still feeling the impacts of Hurricane Irma and we must continue to work arduously to help them recover,” Rep. Ros-Lehtinen said. “I cosponsored the Small Business Disaster Relief Act with my colleague, Mike, in order to expedite loans to small businesses that need financial help. Allowing for greater flexibility regarding these loans will assist those whose businesses are their livelihoods and incentivize job creation in our community as those impacted get back on their financial feet.”
This legislation would give SBA and the U.S. Department of Agriculture’s Farm Service Agency more flexibility in setting the terms and conditions of disaster loans to businesses vital to recovery such as debris removal, gasoline supply, and telecommunications.
It would also authorize SBA to make grants to small business development centers to provide technical assistance to small businesses after a disaster, and encourage SBA to use local district offices to expedite the processing of disaster loan applications.
“The fires that have torn through Northern California have burned 200 businesses to the ground, devastating not only business owners and employees, but the people who count on their services,” Rep. Thompson said. “Today, we’re putting forth the bipartisan Small Business Disaster Relief Act to improve the way the Small Business Administration delivers vital relief aid to businesses that have been impacted by wildfires, hurricanes, and other natural disasters. By helping local businesses restart critical services in disaster-struck areas, we can speed up the overall recovery and rebuilding efforts in these communities.”
“South Florida small businesses are still feeling the impacts of Hurricane Irma and we must continue to work arduously to help them recover,” Rep. Ros-Lehtinen said. “I cosponsored the Small Business Disaster Relief Act with my colleague, Mike, in order to expedite loans to small businesses that need financial help. Allowing for greater flexibility regarding these loans will assist those whose businesses are their livelihoods and incentivize job creation in our community as those impacted get back on their financial feet.”
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- Written by: Elizabeth Larson
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