California Workers’ Compensation Premium Volume Up 11% in 2014
Total workers' compensation premium volume in California increased by about 11% in 2014, according to data compiled by the National Association of Insurance Commissioners, the San Francisco Business Times' "Bay Area BizTalk" reports.
Details of Premium Increase
According to the California Workers' Compensation Institute, premium volume in the state's workers' compensation system increased by $1.1 billion during the 2014 calendar year, reaching more than $11.4 billion, which is:
- $4.5 billion higher than the industry's 10-year low in 2009; and
- $4.7 billion less than the industry's high of $16.1 billion 11 years ago.
Last year was the third consecutive year that the total increased by more than $1 billion, "Bay Area BizTalk" reports.
The increase can be attributed to growth in:
- Average premium rates; and
- Covered payroll.
California's top 10 workers' compensation insurers accounted for 63.3% of total premium volume in 2014, up from about 60.8% in 2013, according to the data. Of those 10 insurers, three saw slight drops in premium volume, while seven saw increases.
For example, premium volume at the:
- State Compensation Insurance Fund jumped by more than 37% in 2014, reaching $1.53 billion; and
- Berkshire Hathaway Group increased by 16.4%, reaching $1.14 billion (Rauber, "Bay Area BizTalk," San Francisco Business Times, 6/12).