California’s Insurance Commissioner approved a 6.6% workers’ compensation insurance rate increase on July 10, 2026, below the 10.4% requested by the Workers’ Compensation Insurance Rating Bureau, with the new advisory rate of $1.65 per $100 of payroll taking effect September 1.
Commissioner Ricardo Lara adopted the rate after reviewing rising cost pressures in California’s workers’ compensation system. The decision marked a second consecutive year of rate increases, following the 8.7% approval in 2025—the first hike since 2015.
Higher medical treatment costs, medical-legal expenses, and a surge in cumulative trauma claims drove the increase. Cumulative trauma claims—injuries that develop over time from repetitive work—have risen from 17.8% to 26.4% of all indemnity claims over the past three years, according to WCIRB data released in June 2026.
In his decision, Commissioner Lara said the adopted rate reflects “thorough review of increasing cost pressures” while maintaining a balance between protecting injured workers, supporting California businesses, and preserving a stable insurance marketplace. The rate remains advisory, meaning insurers aren’t bound by it and can set their own rates.
The WCIRB had proposed the higher 10.4% increase based on projected losses and claim adjustment expenses. However, Department of Insurance actuaries and an actuary representing public members of the WCIRB board recommended a lower figure, which Commissioner Lara adopted.
Sources
- California Department of Insurance — official press release and decision on July 10, 2026 rate approval
- Workers’ Compensation Insurance Rating Bureau of California — cumulative trauma claims data and rate filing information
- Milliman IntelliScript — analysis of cumulative trauma claim surge from 17.8% to 26.4% over three years
