One of the jarring results of the COVID-19 pandemic has been disruption to the rhythm of our daily lives. Routines, regular activities and traditions have all changed as the result of imposed restrictions, personal safety choices and a mixture of both. In the insurance industry, actuaries and other professionals who rely on patterns such as claim reporting lags and loss development factors are now working to understand how emergency declarations, temporary court closures and changes in insured behavior have impacted these patterns. In this blog, I’ll highlight specifically how changes to statutes of limitations because of the COVID-19 pandemic may affect reporting of medical professional liability claims.

Pinnacle Actuarial Resources is dedicated to keeping our clients up-to-date on relevant regulatory, administrative and economic conditions that impact their businesses. Recently, the Workers Compensation Insurance Rating Bureau (WCIRB) of California issued guidance regarding lower-than-anticipated workers compensation (WC) system loss costs. On September 5, the insurance commissioner of California approved all of the WCIRB’s proposed changes. The most current pure premium WCIRB filing, dated August 20, 2019 recommended a 5.4% decrease in average advisory loss costs, effective January 1, 2020.

Marijuana legalization is increasingly prevalent in the United States. Whether for medicinal or recreational use, marijuana is more acceptable these days. A greater number of physicians are prescribing it for their patients, and the U.S. marijuana industry is rapidly expanding. Yet it is still a Schedule 1 drug, as defined by the U.S. Drug Enforcement Agency (DEA). So is an employee who is either prescribed or legally using marijuana eligible to receive workers’ compensation (WC) benefits if they are injured on the job and test positive for it?

Reforms to the California workers’ compensation system implemented over the past few years have led to moderating trends in both claim frequency and claim severity. The upward trend expected in future average wage levels is also serving to lower pure premium rates. Given the relative stability in costs over the past several years, the reduction in the average pure premium rates should contribute to a healthy, vibrant and competitive market.

Another big California workers’ compensation rate reduction is coming, effective mid-year 2018. This will be the seventh straight decrease, with the last reduction taken January 1, 2018.

This past week, the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) approved and released the pure premium rate filing, effective July 1, 2018. This rate reduction has not yet been approved by the California Department of Insurance, and is open to a public comment period and hearing.