January 19, 2021.
(Sacramento, CA, Economic & Insurance News by Insurance Market 360 ) – In view of the ongoing impact on the frontline workforce due to Covid-19, Insurance commissioner Lara, ratified workers’ compensation average advisory pure premium rates to $1.45 for per $100 of payroll for workers’ compensation insurance. It is to be implemented from 1 January 2021.The decision was taken taking into consideration previous bills on rate decrease namely SB 863 & 1160, AB 1244 & 1124,open meeting, supporting references, evidences and proposals from the Insurance companies.
Since from January 2015, this is the tenth decrease in the premium. The current one is 19.4% less than the aggregate of $1.80 prevailed as of July 1, 2020. In spite of the proposal submitted by the department of Insurance, DIS and Workers’ Compensation Insurance Rating Bureau (WCIRB) for $ 1.56 including the anticipated Covid-19 expenses, commissioner was not in their favour as there were no evidence for reliable data available.
He advised, “The WCIRB’s thorough efforts to estimate COVID-19 costs are noted and appreciated but I am not persuaded that there is sufficient and reliable data upon which to base an adjustment for COVID-19 costs,”
Further commissioner added, “With the pandemic continuing to create uncertainty for the near future, we need to continue to review the data along with the impact of both vaccine distribution and additional and necessary public health measures to bend the curve”.
The decision is a welcoming sign especially to the field force working in health, agriculture and other industrial sectors and expecting approval by the legislature.
Source: CA Department of Insurance