NU Online News Service, April 8, 2:57 p.m.EDT

The Workers Compensation Insurance Rating Bureau of California's(WCIRB) Governing Committee has decided to submit an informationalfiling, rather than a rate filing, to the state insurancedepartment in part to shift focus away from a hard number andtoward the actual cost drivers in the workers' comp system.

Earlier this month, WCIRB's Actuarial Committee reported that the workers' compensation systemcontinues to show "significant pure premium rate inadequacy."

In November 2010, former California Insurance Commissioner StevePoizner rejected WCIRB's filing for a 27.7 percent increase in thestate's workers' comp benchmark rate.

Adverse developments since then have added another 10-12percentage points, meaning rates are now inadequate by nearly 40percent, according to Jack Hannan, WCIRB communicationsdirector.

However, Hannan says WCIRB's Governing Committee decided againstfiling for a pure premium-rate increase for July 1. He notes thatthe committee does not want the conversation to focus on the 40percent number. "That's not the point we wanted to get across," hesays.

Rather, the committee wants the conversation among public-policymakers to be about the factors behind the upward pressure on costsand rates. For that reason, WCIRB will make an informational filingonly.

Hannan says that new information requests by the department meanthat any rate filing would not have been made for at least a fewweeks anyway.

The next rate filing will be in August, for rates that wouldtake effect on Jan. 1.

In rejecting the previous increase request, Poizner, thencommissioner, said insurers are not using available tools toaddress cost drivers in the system, and added he would not approvean increase until they use those tools.

Mark Sektnan, president of the Association of CaliforniaInsurance Companies (ACIC), says those tools place a "hugeadministrative burden" on insurers. "[Poizner] never seemed tounderstand that," he says.

Sektnan says Poizner used a "slight of hand" by not addressingcost drivers and then blaming it on insurers for not doingenough.

Regarding the current commissioner, Dave Jones, Sektnan saysinitial conversations have been held and "he seems open to workingwith us."