According to data recently released by the California Workers’ Compensation Insurance Rating Bureau (WCIRB), California workers’ compensation premium rose roughly 11 percent in 2014 compared to their levels in 2013. Written premiums from last year reportedly totaled over $16.5 billion, which is a 88 percent increase from the written premium reported only 5 years before in 2009. The industry average workers’ compensation rate per $100 of payroll for 2014 was $2.93, which is roughly 2 percent above the average rate charged in 2013. Further research indicates that worker deaths and medical claims payments are fluctuating from year to year.
The WCIRB projects total loss expenses for workplace accidental injuries in 2014 to be $12.6 billion. These numbers are roughly 4 percent above expenditures from 2013, and 27 percent above 2009, however they remain below the highs experienced prior to recent Workers’ Comp reform legislation. The recently released WCIRB’s 15th edition of the CompScope’ Benchmarks study, tracked the provisions of Senate Bill 863, which sent into effect Jan. 1, 2013, and has illuminated some early impact of several of the reform provisions. For example, medical payments per claim in California decreased 5 percent in 2013. However, the WCIRB reports that indemnity claim frequency for accident in 2014 rose roughly 1.2 percent above the frequency for 2013.
Claim frequency increases experienced over the last few years are largely attributed to increases in cumulative injury claims, late reported indemnity claims, claims involving injuries to multiple body parts, according to reports. The WCIRB projects the average indemnity claim in 2014 cost roughly $84,000, which could be one reason employers are seeing increases in California workers’ comp premium costs.
At Cal-Nevada Insurance Agency, we help employers find the complete California workers’ comp coverage designed to protect your operation and your employees. Our Lake Tahoe business insurance specialists will craft a policy specifically catered to your needs so that you and your operation can keep working hard without worry about potential losses. Our Insurance Agency serves business owners throughout California, Nevada and Arizona. To learn more about our operation and our risk management solutions, give us a call today at (866) 670-5948.