The WCIRB has released its proposed California workers’ compensation advisory pure premium rates for policies effective September 1, 2026, and WorkCompare.com has integrated these proposed rates into its database for analysis and comparison.

It is important to remember that advisory pure premium rates are not necessarily the final rates a business owner will pay. Pure premium rates represent the WCIRB’s estimate of expected losses and loss adjustment expenses by classification. Insurance carriers may apply their own pricing models, credits, debits, expenses, underwriting judgment, and profit considerations when determining final premiums.

Still, advisory rate movement often provides an important early signal about broader market conditions and the direction of workers’ compensation pricing.

Summary of Proposed Changes

Based on WorkCompare’s year-over-year comparison of the proposed advisory rates, the average rate increased from 4.29 to 4.71, a +9.79% increase.

The proposed changes vary significantly by classification. While many class codes show moderate movement, others are seeing substantial increases or decreases that could materially affect insurance costs for California employers.

Several transportation, construction, manufacturing, and service-related classifications are among those seeing notable upward movement. Some lower-hazard clerical and professional classifications also show measurable changes despite relatively low base rates.

For brokers and agents, these proposed changes create an opportunity to proactively discuss workers’ compensation costs with clients before the rates are finalized and implemented.

Why This Matters to Business Owners

For many California businesses, workers’ compensation is one of the largest recurring expenses. Even relatively small advisory rate changes can materially affect the price employers pay for coverage.

Businesses operating in classifications with larger proposed increases may experience meaningful cost pressure at renewal, especially when combined with payroll growth, experience modification changes, or carrier underwriting adjustments.

At the same time, some classifications are seeing relatively stable or reduced advisory rates, which may create opportunities for brokers and employers to reassess carrier options and improve overall program competitiveness.

Turning Rate Changes Into Client Conversations

One of the biggest challenges for brokers is helping clients understand what rate changes actually mean for their business.

This is where year-over-year advisory rate comparisons become valuable.

Instead of discussing workers’ compensation pricing in abstract terms, brokers can show:

·       how projected renewal pricing compares to expiring premium,

·       whether rates are relatively stable or moving significantly,

·       how carrier rates are moving across the broader California market.

The proposed rates are particularly useful as an early planning tool before the Department of Insurance approves final advisory rates.

Detailed Class Code Rate Comparison

The following table compares approved advisory rates effective 9/1/2025 to the WCIRB’s proposed advisory rates for 9/1/2026 by governing class code.

Conclusion

The WCIRB’s proposed advisory pure premium rates for September 1, 2026 suggest continued pricing movement across many California workers’ compensation classifications.

The impact will vary significantly depending on industry, payroll distribution, governing classifications, and carrier pricing strategy. Brokers and agents should review these proposed changes carefully and begin discussing potential impacts with clients well before renewal.

WorkCompare.com provides tools that make it easier to analyze advisory rates, compare carrier pricing, and guide California employers toward informed workers’ compensation buying decisions.

Make Market Changes Work for You

Don’t be surprised by rate changes — prepare for them. With WorkCompare, you can generate a Pre-Quote Estimate and:

·       Project pricing across class codes before quoting

·       Educate clients on trends that impact their premium

·       Deliver faster, more confident advice

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