California workers’ comp insurance carriers collectively report an underwriting profit of 19.4%. Workers’ Comp Executive reported on profitability last July in this article replete with charts and graphs, but development has increased the bottom line.
California Insurance Commissioner Ricardo Lara recently declined the Workers’ Compensation Insurance Rating Bureau’s request for an increase in rates.
Prompting this story update, the National Association of Insurance Commissioners released its annual report on insurer profitability, and workers’ comp insurance was once again one of the most profitable types of coverage.
On a nationwide basis, workers’ comp carriers reported an underwriting profit of 11.5% and was the third-most profitable type of insurance in 2019 behind only mortgage guaranty and inland marine coverage. However, the actual underwriting profit was greater for workers’ comp than the other two types due to the sector’s much larger size.