Last week, Calif. Insurance Commissioner Ricardo Lara issued the 2021 pure premium advisory rates for Calif. workers’ compensation. Rejecting a proposed surcharge for COVID-19 claim charges, Commissioner Lara approved an average 4.6% reduction in advisory pure premium workers’ compensation rates across all classification codes. Advisory pure premium rates are set by the Calif. Department of Insurance, and they are used by insurance carriers as guidelines to develop their respective filed rates.

Last year, the Calif. Workers Compensation Insurance Rating Bureau proposed an average advisory pure premium rate decrease of 5.4%; the Calif. Insurance Commissioner ultimately approved a 9% reduction in the average advisory pure premium rate for workers’ compensation policies incepting 1/1/2020 and after. Through the 1/1/2021 rate approval, Calif. has now seen ten consecutive reductions to the average advisory pure premium rate.

Additional details and approved advisory rates for the various classifications applicable to agriculture can be found on the Western Growers Insurance Service blog.

Further inquiries can be directed to Ken Cooper at [email protected]