Bureau Testifies at Pure Premium Rate Hearing

Publish Date:May 17, 2016
Summary:
This week, the Department of Insurance held a public hearing on the Workers’ Compensation Insurance Rating Bureau, (WCIRB), July 1, 2016 Pure Premium Rate Filing.

This week, the Department of Insurance held a public hearing on the Workers’ Compensation Insurance Rating Bureau, (WCIRB), July 1, 2016 Pure Premium Rate Filing.  In the presentation, the Bureau “presented the actuarial basis for the WCIRB’s average proposed July 1, 2016 advisory pure premium rate of $2.30, which is 10.4% lower than the corresponding industry average filed pure premium rate of $2.57 as of January 1, 2016 and 5.0% less than the average approved January 1, 2016 advisory pure premium rate of $2.42. The primary factors driving the proposed decrease are improving medical loss development on accident years 2014 and prior and accident year 2015 experience emerging at lower than previously projected levels. Despite these positive trends, the Bureau cautioned that higher loss adjustment expenses, a sharp rise in lien filings and increases in the number of cumulative injury claims are continuing to exert upward pressure on system costs.”  The presentation presented by the Bureau is available in the Filings section of the WCIRB website (www.wcirb.com).

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