California Insurance Commissioner Ricardo Lara on Tuesday adopted and issued a rate for workers’ compensation insurance pure premium that he said reflects California’s still-recovering economy. Lara’s action maintains the benchmark rate at $1.45 per $100 of payroll for workers’ comp insurance, unchanged from last year.
The rate is effective Sept. 1, 2022.
“We’re working hard to get California back to business as usual as people return to work,” Lara said.
Lara’s decision results in an average advisory pure premium rate that is below the $1.56 average rate proposed by the Workers’ Compensation Insurance Rating Bureau of California in its filing with the California Department of Insurance. Lara issued the advisory rate after a virtual public hearing on June 14, and a review of the testimony and evidence submitted by stakeholders.
The pure premium rate is only advisory. The average advisory pure premium rate level of $1.45 approved by Lara is roughly 18% lower than the industry-filed average pure premium rate of $1.77 as of Jan. 1, 2022.
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