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July 28, 2025

California Increases Advisory Pure Premium Rate

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The California Insurance Commissioner has approved an 8.7% increase to the advisory pure premium rate for workers’ comp insurance, effective September 1, 2025. This decision follows a recommendation of 11.2% from the Workers' Compensation Insurance Rating Bureau of California (WCIRB).

The advisory pure premium rate serves as a key benchmark used to estimate the expected cost of workers’ comp claims, including medical treatment and wage replacement, excluding insurer overhead and profit.

The approved increase reflects growing pressures from rising medical costs, claim frequency, and loss adjustment expenses, signaling broader trends in the workers’ comp landscape.

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