Date: Jul 22, 2021
Category:

On Wednesday, California Insurance Commissioner Ricardo Lara issued a decision to once again reduce California workers’ compensation pure premium advisory rates effective September 1, 2021. Rejecting a proposed average rate increase of 2.7%, Commissioner Lara approved an average 3.4% reduction in advisory pure premium workers’ compensation rates across all classification codes. Advisory pure premium rates are set by the CA Department of Insurance, and they are used by insurance carriers as guidelines to develop their respective filed rates.*

Last year, the WCIRB proposed an average advisory pure premium rate increase of 2.6% to be effective 1/1/21, but the CA Insurance Commissioner ultimately approved a 4.6% reduction in the average advisory pure premium rate for workers’ compensation policies incepting 1/1/2021 and after.  Through the 9/1/2021 rate approval, CA has now seen eleven consecutive reductions to the average advisory pure premium rate.

The relative change between the approved 1/1/2021 rates and the proposed 9/1/2021 rates for Sector 11 (“Agriculture, Forestry, Fish & Hunting”), which includes the majority of the CA workers’ compensation classification codes applicable to agriculture, are shown in the table below**:

Class Code

Classification Phraseology

1/1/2021 Approved Advisory  Rate (per $100 of payroll)

9/1/2021 Approved Advisory  Rate (per $100 of payroll)

Percentage change from 1/1/21 to 9/1/2021

0005

NURSERIES — propagation and cultivation of nursery stock

4.74

4.28

-9.7%

0016

ORCHARDS — citrus or deciduous fruits

6.00

6.02

+0.3%

0034

POULTRY RAISING, EGG PRODUCTION AND HATCHERIES; SHEEP, HOG OR CALF FARMS

5.80

5.50

-5.2%

0035

FLORISTS — cultivating or gardening

5.14

4.49

-12.6%

0036

DAIRY FARMS

7.07

6.65

-5.9%

0038

Stock Farms

6.94

7.51

+8.2%

0040

Vineyards

3.38

3.23

-4.4%

0041

Potato Crops

5.03

4.35

-13.5%

0044

Cotton Farms

3.72

4.49

+20.7%

0045

Orchards – Nut Crops

3.78

3.79

+0.3%

0050

Farm Machinery Operations – by contractors

5.64

6.03

+6.9%

0079

Bush Berry Crops; Strawberry Crops

2.99

2.73

-8.7%

0096

Nut Hulling/Shelling

5.38

4.51

-16.2%

0171

FIELD CROPS

5.36

5.14

-4.1%

0172

TRUCK FARMS

3.82

3.57

-6.5%

0401

Cotton Gin Operation

6.55

6.45

-1.5%

2702

Logging

18.01

15.83

-12.1%

2727

Log Hauling

10.14

10.26

+1.2%

7409

AIRCRAFT OPERATION — agricultural — dusting, spraying or seeding — members of the flying crew

7.36

7.38

+.30%

7410

AIRCRAFT OPERATION — agricultural — dusting, spraying or seeding — not members of the flying crew

4.60

4.34

-5.7%

8209

VEGETABLES — fresh vegetable or tomato packing and handling — including storage

5.36

5.08

-5.2%

*Source: WCIRB California, Advisory Pure Premium Rates https://www.wcirb.com/guide-to-workers-compensation/rates/pure-premium-rates

**Source: WCIRB California https://www.wcirb.com/content/september-1-2021-regulatory-and-pure-premium-rate-filings

 

Western Growers Insurance Services, which offers full-service risk management solutions to agricultural and related industry members, provides expert guidance on workers’ compensation and premium advisory rates. For assistance, contact Ken Cooper at kcooper@wgis.com or 949.413.8751.

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