In August of 2019, the Workers’ Compensation Insurance Rating Bureau (WCIRB) voted to lower Workers Comp Pure Prmium Rates by an average of 5.7 percent below the pure premium rates of January, 2019. California Workers Compensation Insurance Rates in 2019 were down 23.5 percent compared to what businesses paid in 2018 for California Workers Comp Coverage. This marks a continuance of five years of continued declines for workers comp rates and the ninth consecutive biannual pure premium workers compensation insurance rate decrease dating back to 2015. These decreases mark a total decline of approximately 44 percent.
There are a number of reasons for the declining Workers Compensation Insurance Premiums in California. The reasons for these declines include: continued downward loss development, acceleration in claim settlements, sharply declining pharmaceutical costs and a further decline in the number of liens being filed. In addition to these reasons for the delicnes, the WCIRB also noted that factors such as increases in cumulative trauma claims, rising claim severities and continued high levels of allocated loss adjustment expenses are moderating the pure premium rate declines. Because these issues are limiting the decreases in pure premium rates, the WCIRB thinks these issues warrant continued monitoring.
California Workers Compensation Rates 2020 are improving for the 5th straight year. This is extremely good news, but the business community in California still suffers from the highest pure premium rates of any state in the country. Because of these high rates, it is important to take advantage of all cost saving measures that are open to a business. Workers Compensation Shop has a network of several dozen carriers that are actively looking to offer coverage to businesses of all types in California. Let one of our experienced Insurance agents help you find the best package of insurance policies for you and your business by clicking here or by calling 1-888-611-7467.