Location plays a bigger role in how Insurance Company of the West prices California business.

Insurance Company of the West (ICW) has filed an important change to its California workers’ compensation rating model.

The new rating structure, with a December 1, 2026 effective date, introduces territory factors that adjust pricing based on the location of an insured’s California operations. ICW divides the state into 20 territories, with factors ranging from 0.85 to 1.20.

That creates meaningful differences across the state.

For example, ICW’s territory factors include:

• Sacramento: 0.85
• Stockton / Modesto / Merced: 0.88
• Bay Area: 0.90
• San Diego: 0.90
• Orange County: 1.01
• San Gabriel Valley / Pasadena: 1.10
• Bakersfield: 1.10
• LA / Long Beach: 1.20

Why this matters

Under the new rating structure, ICW’s competitiveness can vary substantially by location. An account that looks attractive for ICW in one part of California may be considerably more or less competitive in another.

The territory factor is location-specific. ICW assigns each California location to a territory based on ZIP code. For multi-location accounts, ICW calculates a policy-level territory factor using an employee-weighted average of the applicable location factors when employee counts are available.

For producers and account managers, that makes where employees are located another important consideration when evaluating ICW for a new opportunity or renewal.

See what ICW’s territory factors could mean for your accounts

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