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-19 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.
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