The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) Governing Committee recently met to review the WCIRB Actuarial Committee’s analysis of December 31, 2019 California workers’ compensation experience.
The indicated average July 1, 2020 advisory pure premium rate based on December 31, 2019 experience and the methodologies recommended by the Actuarial Committee was $1.53 per $100 of payroll, which is $0.01 above the average approved January 1, 2020 advisory pure premium rate of $1.52.
Given the minor indicated change in advisory pure premium rates and the exceptionally high level of uncertainty of the potential effects of the COVID-19 pandemic related to the impacts of the impending economic downturn on payrolls and claims costs, the potential slowdown in claims activity resulting from the statewide stay-at-home order and emerging claims arising from COVID-19 diagnoses, the Committee unanimously decided not to submit a July 1, 2020 filing.
The Committee also agreed that the potential impacts of the COVID-19 pandemic and payroll and claim cost level should be considered as part of the WCIRB’s January 1, 2021 pure premium rate filing, which is anticipated to be submitted to the Insurance Commissioner in August.
The Actuarial Committee’s analysis of December 31, 2019 experience is publicly available to all stakeholders as are the documents from the Committee meeting, including the agenda and materials presented at the meeting, on the Committee Documents page of the WCIRB website.
Also, on April 14, 2020, the Workers’ Compensation Insurance Rating Bureau of California’s Classification and Rating Committee will consider three rule changes that WCIRB staff are recommending in response to the impact of the coronavirus disease 2019 (COVID-19) pandemic on California employers and workers. The Committee will consider changes that, if approved by the Insurance Commissioner, would:
— Exclude Payments to Employees Who Continue to Be Paid While Not Working
— Allow Assignment of Classification 8810 for Temporary Change in Duties
— Exclude COVID-19 Claims from Experience Rating
Details regarding the proposed changes and the full agenda, including the teleconference login information, are available on the Committee Documents page in the Filings and Plans section of the WCIRB’s website.