Good news regarding Workers' Compensation advisory rates!
As we reported last week, the WCIRB Governing Committee voted to send to Insurance Commissioner Dave Jones, a 7.8% reduction in the advisory rates. Commissioner Jones and his actuaries will review the information; and issue a ruling prior to July 1, 2017.
The rates would be effective for anniversary dates on July 1, 2017 and after. Commissioner Jones will also consider the testimony of the public actuary Mark Priven, whose calculations were 2 points lower than what the Governing Committee approved. CALPASC Director of Risk Management, Bruce Wick, made a specific point about Mark's calculations during the committee voting. Bruce reminded the committee members that in previous advisory rates, Mark's number proved the more appropriate to what the eventual numbers would be. Two additional notes are that the numbers are still skewed between the Los Angeles basin and the rest of the state. The L.A. basin still has worse results, and the number of cumulative trauma claims continues to grow in Southern California, versus the rest of the state.