The Governing Committee of the Workers’ Compensation Insurance Rating Bureau (WCIRB) voted to authorize the WCIRB to submit the proposed January 1, 2020 Pure Premium Advisory rates to the California Insurance Commissioner.
The new rates will on average be 5.7% below those of January 1, 2019. If adopted by the Commissioner’s office, this would be the ninth consecutive pure premium rate decrease since 2015, for a total of about 44 percent.
Though a lagging indicator of economic health, it is still indicative of a good economy—people with jobs would rather work than file a workers’ comp claim. When an economy turns downward and widespread layoffs begin, workers comp claims tend to come out of the woodwork.
We certainly don’t know what the rate bottom might be—this is almost unprecedented for rate decreases. It comes from a growing economy so we should simply enjoy it as long as it lasts!