State Compensation Insurance Fund officials reported at the mid-year mark that the carrier’s net premiums earned were running slightly ahead of 2023 results. However, with another quarter in the books, officials now say it is trailing its prior year performance. Executives say the change is due to a drop in new and renewal business coming …
The Workers’ Compensation Insurance Rating Bureau says that through the first six months of the year, written premium is down 2% to roughly $8.3 billion compared to $8.5 billion at the same point in 2023. Charged rates, however, are up a similar amount. The Bureau is a private organization with quasi-governmental responsibility. It is financially …
California’s workers’ comp insurance industry remained highly profitable in 2019, returning a pre-tax underwriting profit of 18% for the second straight year. The profitability percentage is also pre-investment income putting the profits into the 20% of premium range. However, expectations for 2020 are unclear as officials predict a 20% decline in written premium for the …
The Department of Industrial Relations’ Office of Self-Insurance Plans finally wrapped up rulemaking on one of the last pieces of the Baker SB 863 workers’ comp reforms. The Office of Administrative Law approved the agency’s revised submission for new reporting rules and forms for public agencies that self-insure for workers’ compensation. The regulations took effect …
Insurance carriers writing large deductible workers’ comp policies in California – policies where employers retain at least $100,000 of the liabilities but often times it is in the millions – spend dollars significantly faster on indemnity claims compared to non-deductible policies. This significantly affects employers with deductibles. The question is why and does it relate …
The California Insurance Guarantee Association projects that it will be nearly $160 million in the red on the deposit from the failed Lumbermens Mutual Casualty Company. But there is also some good news: An Illinois court is keeping the hole from getting even deeper despite the best efforts of the Illinois Department of Insurance to …
High attorney involvement, elaborate regulatory schemes, medical care conducted on a lien basis, and scores of cumulative trauma claims filed on a post-termination basis are just a few of the unique factors that make California’s workers’ comp system the most expensive in the nation. California’s loss adjustment expense (LAE) ratio is nearly double the national …
The initial projected $200 million in net savings per year from the SB 863 workers’ comp reforms is turning out to be a $1.3 billion per year windfall for the workers’ comp system, and more savings could still materialize. So too could additional costs. The latest industry report on the system’s post-reform costs shows that …