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WCIRB
Committee Approves Filing of 10.1 Percent
Increase for Advisory Pure Premium Rates
By
Insurance Journal
March
21, 2002
The
Workers' Compensation Insurance Rating Bureau
of California's (WCIRB) Governing Committee
gave the go-ahead March 20 for a filing of a
10.1 increase in advisory pure premium rates
to be effective on policies commencing on or
after July 1, 2002.
The
recommended increase was predicated on the
study of newly available fourth quarter 2001
data, which revealed much larger than expected
loss development. None of the proposed
increase is related to enactment of Assembly
Bill 749. The impact of that bill will be
taken into account in the WCIRB's Jan. 1, 2003
filing scheduled for this summer.
According
to Dave Bellusci, chief actuary for the
Bureau, decline in loss development for the
2000 and previous accident years has been
especially severe over the last year. He added
that in only a few months time, subsequent to
their approval, the 2002 pure premium rates
have already been 10 percentage points
inadequate. He noted that the most recent
available data suggests that there is no
evidence that the loss development trend will
show moderation in the short term.
The
WCIRB is expecting to submit a rate filing
with the California Department of Insurance by
the end of March, with an expected public
hearing to take place through Commissioner
Harry Low in May.
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