January 1, 2021: Pure Premium Rate Filing – Set to Increase for the First Time in Years!
Based on a recent posting, the WCIRB is proposing to INCREASE the pure premium rates effective January 1, 2021. To put this into context: Pure Premium Filing rates have decreased every subsequent year since 2015 – and the average decrease over that time period has been 12% each year. In 2021, the Pure Premium Rates are expected to increase by 2.6%-4% – the first increase of Pure Premium Rates that the industry has seen in quite some time.
COVID-19 is the largest driver to the increase in rates, but other Key Factors include: the impact of the economic slowdown, pre-pandemic development and Claim Settlement rates, and Severity Growth Projections. COVID-19 cost projections are modeled throughout the attached document in detail.
While COVID-19 is the obvious cause that most of us expected to see, it’s important to notice that in addition to COVID-19 claims, the Pure Premium rates are also rising because claims are being settled more frequently and claims are growing in severity. Now more than ever, it’s important to ensure that your business has a thorough process established to manage your workplace injuries and claims. If you’re ready to make sure your company has all of the resources necessary to protect yourself against these trends, we suggest you start here: X Watch.