SELECTED INDICATORS IN WORKERS’ COMPENSATION: A REPORT CARD FOR CALIFORNIANS
Recommended vs. Approved Advisory Workers’ Compensation Rates
The chart below shows both the WCIRB-recommended and IC-approved changes to the workers’ compensation advisory premium rate.
California Workers’ Compensation Rate Changes
As a result of recent workers’ compensation legislative reforms and the subsequent decisions by the IC on advisory premium rates, workers’ compensation insurers have reduced their filed rates as indicated in the chart below.
As of July 1, 2006, the cumulative premium weighted average rate reduction filed by insurers with the CDI is 45 percent for all writers including the State Compensation Insurance Fund (SCIF). There have been six rate reductions since the passage of Assembly Bill (AB) 227 and Senate Bill (SB) 228, and individually stated, filed insurer rates were reduced 3.6 percent on January 1, 2004, 7.3 percent on July 1, 2004, 3.8 percent on January 1, 2005, 14.6 percent on July 1, 2005, 14.7 percent on January 1, 2006, and 10.72 percent on July 1, 2006.1
1 Source: Douglas G. Barker, J.D., Bureau Chief, California Department of Insurance Rate Filing Bureau.