California Insurance Commissioner Ricardo Lara approved workers compensation advisory pure premium rates that average 10.4% higher than last year.

The Workers’ Compensation Insurance Rating Bureau of California submitted a pure premium rate filing in May to the commissioner proposing September 1, 2026 advisory pure premium rates that average 10.4% higher than the average of the approved September 1, 2025.

Related: WCIRB: 2025 California Workers’ Losses and Expenses 102% of Earned Premium

The commissioner issued a decision on July 10, approving advisory pure premium rates for new and renewal policies effective on or after September 1, 2026. The approved advisory pure premium rates average $1.65 per $100 of payroll.

The WCIRB’s proposed advisory pure premium rates are based on insurer losses and loss adjustment expenses incurred during accident years 2025 and prior. According to the WCIRB, drivers of the change include increased frequency of cumulative trauma claims as well as higher medical costs and allocated loss adjustment expenses.