E-Alert Item: WCIRB Votes To Boost Rate Increase Recommendation

The Workers’ Compensation Insurance Rating Bureau has just voted to amend its recommendation for an increase in pure premium rates for 2003. Back in July, the California insurance commissioner approved the WCIRB’s recommendation for an 11.9% increase in the rates. But based on a review of new data reported by insurers reflecting a rise in medical cost development, the WCIRB now wants to recommend a 13.6% increase in rates for 2003. Although insurers remain free to compete and determine on their own how much to charge for insurance, many carriers rely on the WCIRB’s recommendations to set their premium increases. We’ll keep you posted.