The COVID-19 pandemic has resulted in increased claims costs across all industries. Using actuarial data gathered, the California Workers’ Compensation Insurance Rating Bureau (WCIRB) is recommending premium surcharges be imposed to cover the additional costs. They are recommending surcharges be applied in a sliding scale dependent on industry. The proposed surcharges range from 1 percent to upwards of 24 percent.
The insurance commissioner previously asked for more data to support the proposed surcharge recommendation, and the WCIRB presented their rationale on 10/5/2020 during the California Department of Insurance (CDI) hearing.
For detailed information on the data the WCIRB presented at the most recent CDI hearing in support of the surcharge, visit this link.
The Insurance Commissioner closed the record on 10/26/2020, and is anticipated to make a decision within 30 days from close of record.
If the recommendations are approved the surcharges would go into effect 1/1/21, and could result in potential premium increases.
- Construction, Education, Manufacturing: 6 percent
- Retail: 12 percent
- Accommodation and Food Services: 18 percent
- Healthcare and Social Assistance: 24 percent
Full List of Surcharges by Industry:
We will continue to monitor this situation for further development. If you have questions on how this may impact your insurance, please feel free to contact me directly.