May 1, 2025 | San Francisco, CA — MedLegalNews.com — WCIRB Proposes 11.2% Hike: The Workers’ Compensation Insurance Rating Bureau of California (WCIRB) has submitted its proposed September 1, 2025, Pure Premium Rate Filing to the California Department of Insurance (CDI). The average advisory pure premium rate reflects an 11.2% increase over the prior year and is intended to serve as a benchmark for insurers setting workers’ compensation rates. Although advisory in nature, the filing signals notable cost trends impacting California’s workers’ comp system.
WCIRB attributes the proposed adjustment to increased indemnity claim severity, medical inflation, and a higher volume of cumulative trauma cases. The filing incorporates the latest actuarial data, which shows emerging patterns in claim development and systemwide expenses. Stakeholders can review the full proposal ahead of the public hearing, where the CDI will evaluate whether the recommended rates align with legal and actuarial standards before issuing final approval.
Key Factors Behind the Proposed Increase
In its latest filing, the WCIRB attributes the proposed 11.2% increase in pure premium rates to a combination of actuarial and economic factors. Notably, updated loss development trends indicate that claims are maturing with greater severity than previously anticipated. This trend, coupled with persistent inflation in both medical treatment and administrative costs, has placed upward pressure on the overall cost of workers’ compensation coverage in California.
The California Department of Insurance (CDI) is expected to announce a public hearing date shortly. This hearing will provide stakeholders—including insurers, employers, and labor representatives—an opportunity to weigh in on the filing. Once the date is set, a formal Notice of Proposed Action, along with further documentation, will be made available on the WCIRB’s Regulatory and Pure Premium Rate Filings page of the WCIRB website. The complete filing package is already accessible to the public, allowing early review and analysis ahead of regulatory deliberations.
WCIRB Webinar to Explore Filing Methodology
The proposed 11.2% hike aims to provide greater transparency into the proposed premium rate changes, WCIRB actuaries will host a public webinar on Wednesday, May 7, 2025, from 10:00 to 11:00 AM PT. The live session will walk attendees through the underlying actuarial data, economic factors, and forecasting techniques that contributed to the recommended 11.2% increase in pure premium rates.
Key discussion points will include trends in claim severity, medical inflation, and loss development patterns. Stakeholders—including insurers, employers, brokers, and public officials—are encouraged to attend. Participants may submit questions during the registration process to be addressed in the Q&A portion of the webinar.
👉 Register for the webinar here
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FAQs: About the Proposed Workers’ Compensation Rate Increase
Why is the WCIRB proposing an 11.2% increase in workers’ compensation pure premium rates?
The WCIRB cited several cost drivers, including increased indemnity payments, inflation-related medical expenses, and revised loss development trends. These factors have pushed projected system costs higher, prompting the proposal.
How does a change in pure premium rates affect employers’ workers’ compensation insurance costs?
Pure premium rates influence the base cost insurers use to price workers’ compensation policies. While the rates are advisory, insurers often use them as benchmarks, meaning an increase could lead to higher premiums for employers.
When will the proposed workers’ compensation rate changes take effect?
If approved by the California Department of Insurance, the new rates will apply to policies starting on or after September 1, 2025. A public hearing will be held before a final decision is made.