California’s employers could see a decrease in their Workers’ Compensation Insurance premium if the Department of Insurance approves the rate proposal made by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) on August 19, 2015.  If approved, the advisory rates could be adopted by California admitted carriers for policies starting January 1, 2016.

Keep in mind that pure premium rates are not necessarily what a carrier will charge a policyholder on January 1st.  A pure premium rate is simply the amount the WCIRB expects carriers’ to pay for claims, losses and loss adjustment expense based on the kind of work an employee does.  The proposed pure premium rates do not contemplate the other things insurance companies need to pay, like salaries to underwriters, commissions to brokers or dividends to shareholders.

DOWNLOAD:  Click here to download a table that shows how the rates proposed for January 1, 2016 compare to the advisory rates in force during the prior policy period.

WorkCompare.com provides this information because policyholders are concerned with budgets, specifically the difference between last year’s premium and the coming year’s renewal pricing. And, we encourage our users to contact their policyholders and provide the specific details of how their exact rates are changing, up or down.  For example, the sample data below illustrates the differences between the advisory rates in force January 1, 2015 to the rates proposed for January 1, 2016:

Proposed Premium Decreases

Rates for 437 classifications are proposed to DECREASE including:

Proposed Premium Increases

Rates for 50 classifications are proposed to INCREASE including:

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As you prepare your clients for renewal, it is important to keep in mind that not all rates change uniformly.  Rates for some policyholders could go up and some could go down.  Knowing how much a policyholder’s renewal rates are changing could be valuable information to have as you plan your marketing strategy – especially if you anticipate competition at renewal.

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