Gino DiCaro

Work Comp Rating Bureau Stands By 3.5 Increase

By Gino DiCaro, VP, Communications

Capitol Update, Sept. 8, 2004 Share this on FacebookTweet thisEmail this to a friend

Based on the June 2004 actuarial data, the Workers’ Compensation Insurance Rating Bureau Governing Committee has voted to stand pat on its recommended pure premium rate increase of 3.5 percent.

The increase is based on benefits increases enacted by AB 749, but Bureau execs reminded the members of its Committee – made up of mostly out-of-state carriers -- that but for the workers’ comp reform legislation passed in fall 2003 and early spring 2004, employers would have been looking at a recommended 50 percent increase in January 2005 rates.

According to Bureau actuaries, the Department of Insurance, using the same methodology it used to determine the advisory pure premium rate for July policies, came up with a three tenths percent increase in rates from AB 749. The Department has not calculated its January rate recommendation yet and says it will not do so until after the hearing next week.
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