"The
recommended increase was based on an analysis of loss and loss
adjustment experience as of March 31, 2003"
WCIRB
to Propose 12% Rate Increase Effective January
1, 2004
The WCIRB Governing
Committee recently approved the filing of an
average 12 percent increase in advisory pure
premium rates to be effective on policies
incepting on or after Jan. 1, 2004.
The recommended increase was based on an
analysis of loss and loss adjustment
experience as of March 31, 2003. Included in
the 12 percent increase is a 5 percent
provision to reflect the cost of Assembly Bill
No. 749 on 2004 policies and a 1.8 percent
provision to reflect the expected long-term
average cost of losses arising from
earthquakes.
The WCIRB anticipates submitting a rate filing
with the California
Department of Insurance next week. It is
expected that the
Insurance Commissioner will hold a public
hearing to consider the proposal in September.
The WCIRB will make the rate filing available
on its Web site once
it is filed.
