State Compensation Insurance Fund’s average rate decreases by -22.82% — effective 12/1/2024
State Compensation Insurance Fund has filed with the California Department of Insurance to revise its base rates for workers’ compensation policies effective December 1, 2024. This change has a direct effect on the price policyholders pay for coverage.
How will this affect pricing?
Consider how the average rate* effective for December 1, 2024 for this issuing company is changing compared to the prior policy period:
Issuing Company | Average Rate
Eff 12/1/2023 Tier Mod 1.00 | Average Rate
Eff 12/1/2024 LCM 40 | % Change |
State Compensation Insurance Fund | 9.86 | 7.61 | -22.82% |
*Average rate calculation does not include per capita or per race rates (7707 – Firefighters – volunteers, 7722 – Police, Sheriffs – volunteers, or 8278 – Jockeys).
Learn More: State Compensation Insurance Fund filed new LCM Tiers effective 3/15/2024
Will policyholders pay less if the average rate decreases?
It is important to keep in mind that not all rates will change uniformly. Rates for some policyholders could go up and some could go down. To make a fully informed buying decision, you will need to know exactly how pricing will change for your specific policy.
For example, the table below shows how some of State Compensation Insurance Fund’s individual rates are changing compared to the prior policy period:
Class - Description | Advisory Rate
Eff 12/1/2023 Tier Mod 1.00 | Advisory Rate
Eff 12/1/2024 LCM 40 | % Change |
8827 - Homemaker Services | 4.15 | 4.82 | 16.14% |
9015 - Building Operation—N.O.C. | 6.49 | 6.94 | 6.93% |
5146 - Cabinet/Fixtures Installation | 8.82 | 9.24 | 4.76% |
5432 - Carpentry—high wage | 11.12 | 9.43 | -15.20% |
5403 - Carpentry—low wage | 28.4 | 21.32 | -24.93% |
7219 - Trucking Firms | 17.23 | 12.61 | -26.81% |
What should I do with this information?
If you are an employer or insurance buyer, ask your agent or broker for a pre-quote estimate that illustrates how these changes will affect your budget. If your rates are going down, you could save money. If they are increasing, you will need to plan accordingly.
If you are an insurance professional (agent, broker or underwriter), share this information with your clients and offer to provide pricing insight. Understanding exactly how these changes affect pricing could impact how you market your renewals.
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