{
  "url": "https://scopeofcover.com/data/ca/workers-comp-advisory-pure-premium-rate",
  "title": "California Workers' Comp Advisory Rates: 2025 and 2026",
  "template": "data",
  "published": "2026-10-13",
  "updated": "2026-10-13",
  "last_verified": "2026-10-13",
  "answer": "The California Department of Insurance adopted a new average advisory pure premium rate for workers' compensation. Scope of Cover found the adopted rate is $1.65 per $100 of payroll, effective September 1, 2026. This represents a 6.6% increase over the 2025 rate of $1.52 per $100 of payroll. These rates are advisory, meaning insurance companies are not required to use them when setting the actual premiums employers pay.",
  "editor": {
    "name": "Eric Dawson",
    "title": "Editor"
  },
  "publisher": "scopeofcover.com",
  "claims": [
    {
      "claim_id": "ca-wc-pure-premium-rate-2026-increase-from-2025",
      "statement": "The adopted average advisory pure premium rate of $1.65 per $100 of payroll for 2026 represents a 6.6% increase from the 2025 approved rate.",
      "value": 6.6,
      "unit": "percent",
      "as_of": "2026-09-01",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release024-2026.cfm",
      "quote": "Insurance Commissioner Ricardo Lara today adopted a new workers’ compensation insurance average advisory pure premium rate of $1.65 per $100 of payroll, a 6.6% increase from the 2025 approved rate.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-wcirb-2026-rate-request",
      "statement": "The Workers' Compensation Insurance Rating Bureau of California (WCIRB) requested a 10.4% rate increase for the 2026 advisory pure premium rate.",
      "value": 10.4,
      "unit": "percent",
      "as_of": "2026-10-12",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release024-2026.cfm",
      "quote": "This is in line with the analysis and recommendation of Department of Insurance actuaries but below the 10.4% requested rate increase of the Workers' Compensation Insurance Rating Bureau of California (WCIRB).",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-advisory-rate-meaning",
      "statement": "The adopted advisory pure premium rate is not binding on insurance companies, which are free to set their own rates.",
      "value": "advisory",
      "as_of": "2026-09-01",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release024-2026.cfm",
      "quote": "The adopted rate is advisory, meaning that insurance companies are not bound by it and are free to set their own rates.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-2026-rate-effective-date",
      "statement": "The new workers' compensation average advisory pure premium rate for 2026 will be effective on September 1, 2026.",
      "value": "September 1, 2026",
      "as_of": "2026-09-01",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release024-2026.cfm",
      "quote": "The new rate will be effective on September 1, 2026.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-wage-growth-offset",
      "statement": "Wage increases from a growing economy have partially offset some of the higher costs in the workers' compensation system.",
      "value": "wage increases from a growing economy",
      "as_of": "2026-10-12",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release024-2026.cfm",
      "quote": "Wage increases from a growing economy have partially offset some of the higher costs.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-wc-pure-premium-rate-2025",
      "statement": "The Department of Insurance experts recommended, and Commissioner Lara adopted, an average advisory pure premium rate of $1.52 per $100 of payroll for 2025.",
      "value": 1.52,
      "unit": "USD per $100 of payroll",
      "as_of": "2025-09-01",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release048-2025.cfm",
      "quote": "The Department’s experts recommended an average advisory pure premium rate of $1.52 per $100 of payroll, which was adopted by Commissioner Lara.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-wc-pure-premium-rate-2025-increase",
      "statement": "The 2025 average advisory pure premium rate reflected an 8.7% increase over the previous year's approved rate.",
      "value": 8.7,
      "unit": "percent",
      "as_of": "2025-09-01",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release048-2025.cfm",
      "quote": "This action follows the Commissioner’s adoption of a new Workers’ Compensation Insurance Claims Cost Benchmark and an Average Advisory Pure Premium Rate, which reflects an 8.7% increase over last year’s approved rate.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-2025-rate-effective-date",
      "statement": "The 2025 workers' compensation average advisory pure premium rate became effective on September 1, 2025.",
      "value": "September 1, 2025",
      "as_of": "2025-09-01",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release048-2025.cfm",
      "quote": "The new rate will be effective on September 1, 2025.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-workers-comp-cost-drivers-2025",
      "statement": "In 2025, rising costs in the California workers' compensation system were attributed to higher medical treatment and medical-legal costs, an increased number of projected cumulative trauma claims, and escalating claim adjustment costs.",
      "value": "higher medical treatment and medical-legal costs, a greater number of projected cumulative trauma claims, and escalating costs associated with adjusting claims",
      "as_of": "2025-07-15",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release048-2025.cfm",
      "quote": "Higher medical treatment and medical-legal costs, a greater number of projected cumulative trauma claims, and escalating costs associated with adjusting claims have all resulted in deteriorating accident year combined ratios, while at the same time, the rates charged by insurers have remained low.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-accident-year-combined-ratio-2024",
      "statement": "The Workers' Compensation Insurance Rating Bureau (Bureau) projected a combined ratio of 123% for accident year 2024, which is the highest level in nearly 15 years.",
      "value": 123,
      "unit": "percent",
      "as_of": "2025-07-15",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release048-2025.cfm",
      "quote": "The Bureau’s projected combined ratio for accident year 2024 is estimated to be 123% -- the highest level in nearly 15 years -- and surpasses levels seen prior to the implementation of the SB 863 reforms that began in 2012.",
      "retrieved": "2026-10-12"
    },
    {
      "claim_id": "ca-deductible-premium-relationship",
      "statement": "A higher deductible, which is the amount an employer chooses to self-insure, generally results in a lower insurance premium.",
      "value": "higher deductible",
      "as_of": "2024-06-14",
      "jurisdiction": "CA",
      "source_url": "https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm",
      "quote": "The higher the deductible (the amount you choose to self-insure) the lower the rate. By utilizing higher deductibles, you can bring your premium cost down; however, you do not want to jeopardize your company’s financial future by choosing overly large deductibles.",
      "retrieved": "2026-10-12"
    }
  ],
  "sources": [
    {
      "title": "California Department of Insurance: Commissioner Lara takes action to maintain stable workers' compensation market amid rising costs (2026 advisory pure premium rate)",
      "url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2026/release024-2026.cfm",
      "publisher": "California Department of Insurance",
      "retrieved": "2026-10-12"
    },
    {
      "title": "California Department of Insurance: Commissioner Lara alerts state leaders to growing costs in California's workers' compensation system (2025 advisory pure premium rate)",
      "url": "https://www.insurance.ca.gov/0400-news/0100-press-releases/2025/release048-2025.cfm",
      "publisher": "California Department of Insurance",
      "retrieved": "2026-10-12"
    },
    {
      "title": "California Department of Insurance: Commercial Insurance Guide",
      "url": "https://www.insurance.ca.gov/01-consumers/105-type/95-guides/09-comm/commercialguide.cfm",
      "publisher": "California Department of Insurance",
      "retrieved": "2026-10-12"
    }
  ],
  "license": "CC BY 4.0. Attribute to Scope of Cover (https://scopeofcover.com/)."
}