Insurance Department Sets May 3 Hearing for Mid-Year Rate Cut

The California Department of Insurance will hold a hearing May 3 on the Workers’ Compensation Insurance Rating Bureau’s recommendation to reduce the advisory pure premium rate by 7.8%. The bureau is recommending a rate of $2.02 per $100 of payroll for policies incepting on or after July 1. The indicated rate is 7.8% lower than the advisory rate of $2.19, and 16.5% lower than the industry average filed rate of $2.42 as of Jan. 1. Decreasing claim frequency, favorable medical loss development and lower-than-projected loss adjustment expenses are helping drive down the indicated rat...