|
|
(Flash Report!)
The WCIRB Governing Committee at its semi annual meeting
today recommended the pure premium rate be reduced by 11.3%.
For the eighth time since January 1, 2004, the Governing Committee recommended
a reduction in pure premium rate. With this reduction the cumulative decrease
in the last three and one half years now totals 64%.
WCIRB actuary David Bellisci made the recommendation based on a multi
faceted analysis which included consideration of the data submitted by
insurance companies representing 88% of the statewide market with an annual
premium of $15 billion. [AIG with a 10% market share and Virginia Surety
with 1.5% of the market were not considered due to anomalies in the data
submitted to the WCIRB.]
The recommended change in the pure premium rate involved an adjustment
to historical data for indemnity loss and medical loss development projections
and an analysis of the impact of legislation reforms including the implementation
of the new Permanent Disability Rating Schedule effective January 1, 2005.
Mr. Bellisci pointed out that the new rating schedule has had a major
impact on indemnity payout and that the actual post reforms loss development
has been better than expected. [The WCIRB Actuarial Committee estimated
a 50% reduction in permanent disability benefits following the implementation
of the new rating schedule] He opined that the Pendergrass en banc decision
issued in January will have a limited impact on the pre January 1, 2005
claims.
last updated:
March 29, 2007
| |
|
|
|
|
|
|
 |
|
Diversified Risk Insurance Brokers
phone: 510/547-3203 fax: 510/547-5648
5900 Christie Ave
License # 0529776
Emeryville, California 94608
copyright © 2001
|
|
