Expanding Payrolls Boost State Fund’s 3Q Results

The State Compensation Insurance Fund’s board of directors will hear tomorrow that the quasi-governmental carrier’s net premium earned is up nearly 24% through the first three-quarters of 2021. Overall, the carrier reported $910 million in net premium earned through September 30th, compared to 2020 results of $735 million. Officials say that higher reported payroll is … Read More »

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COVID, Fee Schedules Boost State Fund’s 1st Quarter Loss Ratio

The State Compensation Insurance Fund’s board of directors will hear this week that the carrier saw a 25% increase in net premiums earned in the first quarter of 2021, but its key ratios also ticked up due in large part to the pandemic. The carrier still produced net income of $50 million thanks to earnings … Read More »

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State Fund’s Premium Reflects Pandemic’s Impact

Through the first nine months of 2020, including seven months of a COVID-19 upended economy, the State Compensation Insurance Fund reports that its net premiums earned are off 18% from the prior year at $735 million. The carrier says a rate cut taken at the first of the year and a reduction in audit premium … Read More »

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Workers’ Comp Profitability Soared In 2018

California’s workers’ comp insurance industry was already profitable entering 2018, and the latest data indicates it profits are increasing. The workers’ comp industry’s underwriting ratio improved by a full 10 points and produced a $3.1 billion underwriting profit, according to the latest data on losses and expenses. Investment income add to the increase. Last year … Read More »

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Workers’ Comp Is Profitable, But Expense Ratio Ticks Up

California’s workers’ comp insurers last year spent 38 cents out of every premium dollar on adjusting claims, commissions, and expenses other than benefits for injured workers, according to a new statewide report about the industry’s 2017 underwriting experience. The industry saw its pre-tax underwriting profit climb again to 8.4% of earned premium (see chart). The … Read More »

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High ALAE Costs In Large Deductible Plans

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 … Read More »

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Reserve Charge Upends SCIF’s Combined Ratio

The State Compensation Insurance Fund boosted its loss adjustment expense reserves by $217 million and also shifted $448 million from losses to the LAE category during the fourth quarter to recognize the impact of recent salary increases for claims adjusters. The result changed what would have been a combined ratio of 132.8 to a whopping … Read More »

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CA Combined Lower Than Bureau Says

California’s workers’ comp industry is significantly more profitable than employers, legislators, regulators, and other policymakers are being lead to believe. The Workers’ Compensation Insurance Rating Bureau pegs the industry’s 2016 combined ratio at 96%, which is quite profitable. But a study commissioned by Workers’ Comp Executive extracted State Fund’s results and confirms private carriers have … Read More »

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