Insurer Group Seeks Increase to Workers’ Comp Insurance Rates
On Tuesday, the Workers' Compensation Insurance Rating Bureau will hold a hearing on its recommendation to increase workers' compensation policies by 5.2% for next year, the San Francisco Business Times reports.
The agency previously recommended a 4.2% increase but amended the recommendation after analyzing legislation (AB 338) that Gov. Arnold Schwarzenegger (R) signed into law. The bill increases the period for paying disability benefits from two years to five years (Rauber, San Francisco Business Times, 10/22).
Workers' comp insurance rates have fallen by 64% since lawmakers overhauled the system in 2003 and 2004. The proposed increase would end eight consecutive rate reductions; WCIRB issues rate recommendations twice annually (California Healthline, 10/14).
California's insurance commissioner typically recommends a rate in the range suggested by WCIRB. The insurance commissioner's recommendation is not binding on insurers, but it often is considered a guideline (San Francisco Business Times, 10/22).