Workers’ Comp Group Releases Data From Insurers
California's workers' compensation system is "still a healthy environment," according to a report released this week by the Workers Compensation Insurance Rating Bureau, the Sacramento Business Journal reports. The report is based on insurers' earnings during the second quarter of 2007.
Jack Hannan, spokesperson for the bureau, said the findings are similar to last quarter's and show that the workers' compensation system "may have seen the full impact of the reforms" (Johnson, Sacramento Business Journal, 11/8).
Workers' comp insurance rates have fallen by 64% since lawmakers overhauled the system in 2003 and 2004 (California Healthline, 10/23).
The report found an increase in insurers' losses, but noted that while premiums are declining, the changes in premium rates take effect only upon yearly policy renewals.
The bureau projects insurers will spend 62 cents on claims and expenses for every premium dollar collected for the ultimate accident year 2006. Insurers spent 51 cents for every premium dollar in 2005.
The results of the report are based on data reported by insurers using 2006 premium levels.
Meanwhile, the agency has recommended a 5.2% increase to workers' compensation policies for next year.
Insurance Commissioner Steve Poizner (R) will consider the bureau's suggestion and recommend a rate within three weeks (Sacramento Business Journal, 11/8).
The proposed increase would end eight consecutive rate reductions; WCIRB issues rate recommendations twice annually (California Healthline, 10/23).