California Insurance Commissioner Ricardo Lara has adopted an average advisory workers’ compensation pure premium rate of $1.65 per $100 of payroll, effective September 1, 2026.

The rate represents a 6.6% increase from the approved 2025 rate but is below the 10.4% increase requested by the Workers’ Compensation Insurance Rating Bureau of California.

The rate is advisory, meaning insurers are not required to follow it and may set their own rates.

The California Department of Insurance attributed the increase to higher medical treatment and medical-legal expenses, more projected cumulative trauma claims, and rising claim-adjustment costs. Wage growth has partially offset those pressures.

“Last year, we alerted policymakers to early warning signs of increasing costs in California’s workers’ compensation system, and those trends require continued attention. Our actions must be guided by data and focused on maintaining a workers’ compensation system that protects injured workers, supports California businesses, and promotes a stable and competitive insurance marketplace. This adopted rate reflects our thorough review of increasing cost pressures, and we will continue working with stakeholders on solutions that keep California’s workers’ compensation system strong.” – Commissioner Lara.