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An increase of 7.6% is recommended for employers in California



The Governing Body of the Workers’ Compensation Insurance Rating Bureau voted on Wednesday to recommend that California Insurance Commissioner Ricardo Lara raise the advisory net premium by about 7.6%, as of September 1st.

The recommended interest rate, in addition to reflecting the insurer’s experience up to the end of 2021, excluding covid-19 claims, includes an average 0.5% provision for the estimated cost of covid-19 claims to be incurred on insurance after the beginning of September , WCIRB said in a statement. The difference seems to be about one penny per $ 100 in the payroll.

WCIRB’s Governing Body approved an advisory net premium rate of $ 1.55 per $ 100 in the payroll, excluding COVID-1

9 claims. The addition of the covid-19 factor should bring the price to around $ 1.56 when WCIRB submits its application later this month.

Before approving the interest rate recommendation, the members of the steering committee rejected a small interest rate cut recommended by the actuary for public panel members. Actuary Mark Priven, who consults with members of the steering committee who do not represent insurance companies, recommended a rate of $ 1.42, slightly more than a 2% reduction from the current rate.

WorkCompCentral is a sister magazine to Business Insurance. More stories here.


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