WCIRB Report Says Work Comp Insurers Lost $2.3 Billion in 2011

28 Jun

The reports are in for California’s workers’ compensation insurers for 2011, and the news is not pretty.  The insurers collected $10.4 billion in workers’ compensation premiums in 2011, but paid out $12.7 billion – $7.7 billion in support benefits and medical care, and expenses of $5 billion and thus lost about $2.3 billion, or a loss of 22.1% of premium last year.

For that reason, we are seeing one insurance company after another file for higher rates in California, and pricing their renewal policies much tighter as well.

This latest report indicates that insurer losses on workers’ compensation coverage were greater than those experienced in 2010 when the , the combined loss and expense ratio was 117%.  The 2011 year results were 122%. 

According to an article in the June 26, 2012 edition of The Sacramento Bee, Dan Walters reports ” the report fuels the nascent campaign of insurers to increase premiums and suggests that they may form an alliance with unions, medical providers and attorneys for injured workers to overhaul the workers’ compensation reforms enacted eight years ago. That would create conflict with employers, who enjoyed sharp premium reductions after the reforms were enacted.”

Employers need to sharpen their focus on safety, reduce accidents and tell their story about how they control workers’ compensation claims and their experience modification or ex mod.  Consultants such as Don Dressler Consulting can help lower work compensation premiums.

Visit our website: www.calworksafety.com to learn more about Worker’s Compensation issues.

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