Representing over 25% of the workers’ compensation premium in the country, California is the heaviest weight in the overall profitability of the national system. Considered to be the most volatile state for many years, California rates became the highest in the country. Below an Oregon study that comes out every two years on overall cost of the workers’ compensation system.
In 2014, #1 Most Expensive
This recent drop in pure premium rate will now make it interesting to watch as more carriers see California as a growth state. To me, this indicates a sign of more competition to come in a system that is more profitable then given credit for at present time.
I am also very intrigued by these comments made by the WCIRB:
“Despite these positive trends, the Filing cautioned that historically high levels of loss adjustment expenses, persistently high rates of indemnity claim frequency, an increasing number of independent medical review requests, a spike in lien filings in early 2015, and persistent increases in temporary disability duration require continued monitoring as they may drive increased costs in the future.”
Coincidentally, FAPEO and NAPEO also see Allocated Loss Adjustment Expenses for its members as as such has sponsored the following program at the Workers Compensation Institute (“WCI”). Come visit Orlando this coming week to hear about it… Information regarding the panel and overall session below along with the WCIRB bulletin.