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Annual reports regarding the California Workers’ Compensation Program’s losses and expenses can help the state see where the greatest payments occur in the system. These reports keep track of yearly program spending and compare data across different financial categories to see where the state could make improvements. The 2016 Report by the Workers’ Compensation Insurance Rating Bureau of California (WCIRB) shows fascinating statistics that could inform employers and workers’ comp insurers in the state in the next year.
The WCIRB report collected data from insured employer experiences. It also took into account payments the California Insurance Guarantee Association (CIGA) made when calculating statewide loss payments. Taking a look at the latest report can highlight a few trends in insurance company losses and claim costs, such as:
The data includes detailed information from the 2016 year, with limited information on 2017. The report suggests that the percentage of earned premiums for insurers has dropped since 2015. In 2015, insurers saw 62% losses and 36% premiums for a total of 98% in earned premium. In 2015, these totals were 60% in losses and 34% in expenses for a total of 94%. Insurers lost the most on “strain by lifting” as the cause of injury, with $448,236,847 (10.5%) in total incurred losses.
Workers’ compensation data can help insurers establish premium costs and employers enhance the safety of workers. Being proactive about using the data can benefit all parties involved.