Insurance Commissioner Adopts Workers Comp Benchmark Rate
News Release Date: July, 2022
Insurance Commissioner Lara issues workers’ compensation benchmark rate
SACRAMENTO, Calif.— Recognizing that businesses are working hard to return to a nearly pre-pandemic market but still facing economic uncertainty and continued COVID-19 disruptions, the Commissioner’s action maintains the benchmark rate at $1.45 per $100 of payroll for workers’ compensation insurance unchanged from last year and within the reasonable actuarial range proposed by other experts, effective September 1, 2022. Action supports California’s recovering economy while acknowledging challenges still facing businesses.
Because of continued uncertainty regarding COVID-19 and its effects on the economy, this year’s pure premium rate remains the same as last year’s rate, and again does not include a COVID-19 factor. Commissioner Lara will continue to review data in future pure premium rate filings to determine the long-term impact of COVID-19 claims as well as other experience data.
“We’re working hard to get California back to business as usual as people return to work,” said Commissioner Lara. “This year’s rate is on par with normal, pre-pandemic levels while still reflecting the long-term benefits of workers’ compensation reform passed by the State Legislature and signed by the Governor to reduce costs.”
Commissioner Lara’s decision results in an average advisory pure premium rate that is below the $1.56 average rate proposed by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) in its filing with the Department of Insurance. Commissioner Lara issued today’s advisory rate after a virtual public hearing that he convened on June 14, 2022 and careful review of the testimony and evidence submitted by stakeholders.
Read More: California Department of Insurance
Teresa M. Young has been a consultant to entrepreneurs since 1986, in both retail and B2B sectors. In 1991, she became President of Sign Biz, Inc., a full-service business development company. Young sits on multiple boards, including as Past Chairwoman of both the International Sign Association (ISA) and California Sign Association. She is an accomplished code writer, web developer and contributor to the Git Repository. Young is also an in-demand speaker, engaging business owners with topical and powerful business insights and strategies in support of best business practices and modern marketing strategies under her MintyWorks and Coffee with T brands. 200 click-and-mortar enterprises were established under the Sign Biz business model with more than $19,000,000 worth of SBA-backed funding for these businesses.